10-Q – 2025-08-07 – ewbc-20250630.htm

Three Months Ended June 30, Six Months Ended June 30,
2025 vs. 2024 2025 vs. 2024
Changes Due to Changes Due to
($ in thousands) Total Change Volume Yield/Rate Total Change Volume Yield/Rate
Interest-earning assets:
Interest-bearing cash and deposits with banks $ (14,471) $ (4,071) $ (10,400) $ (49,716) $ (23,438) $ (26,278)
Resale agreements
(261) (225) (36) (4,766) (1,971) (2,795)
Debt securities:
AFS
42,254  45,326  (3,072) 114,915  103,770  11,145 
HTM
(198) (162) (36) (467) (433) (34)
Total debt securities 42,056  45,164  (3,108) 114,448  103,337  11,111 
Loans:
C&I (18,857) 22,306  (41,163) (51,253) 33,375  (84,628)
CRE (3,440) 4,483  (7,923) (16,141) 3,249  (19,390)
Residential mortgage 19,700  14,403  5,297  38,917  25,388  13,529 
Other consumer (149) (57) (92) (246) (167) (79)
Total loans (2,746) 41,135  (43,881) (28,723) 61,845  (90,568)
Restricted equity securities 7  23  (16) 1,527  1,269  258 
Total interest and dividend income $ 24,585  $ 82,026  $ (57,441) $ 32,770  $ 141,042  $ (108,272)
Interest-bearing liabilities:
Checking deposits $ (5,667) $ 918  $ (6,585) $ (11,577) $ 1,238  $ (12,815)
Money market deposits (11,123) 14,869  (25,992) (29,766) 25,481  (55,247)
Savings deposits (1,304) (135) (1,169) (1,977) (266) (1,711)
Time deposits (12,800) 30,410  (43,210) (1,792) 68,572  (70,364)
Total interest-bearing deposits
(30,894) 46,062  (76,956) (45,112) 95,025  (140,137)
BTFP, short-term borrowings and federal funds purchased
(31) (15) (16) (42,131) (42,097) (34)
FHLB advances (9,527) 134  (9,661) 21,600  34,496  (12,896)
Repurchase agreements 1,294  1,308  (14) 1,336  1,357  (21)
Long-term debt and finance lease liabilities (102) (11) (91) (1,830) (1,705) (125)
Total interest expense $ (39,260) $ 47,478  $ (86,738) $ (66,137) $ 87,076  $ (153,213)
Change in net interest income $ 63,845   $ 34,548   $ 29,297   $ 98,907   $ 53,966   $ 44,941  

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Noninterest Income

The following table presents the components of noninterest income for the second quarters and first halves of 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands) 2025 2024 % Change 2025 2024 % Change

Commercial and consumer deposit-related fees
$ 26,865  $ 25,649  5  % $ 53,940  $ 50,597  7  %
Lending and loan servicing fees
25,586  24,340  5  % 51,816  47,265  10  %
Foreign exchange income 13,715  12,924  6  % 29,552  24,393  21  %
Wealth management fees 10,725  9,478  13  % 24,404  18,115  35  %
Customer derivative income:

Derivative income
3,645  4,230  (14) % 9,184  7,367  25  %
Derivative mark-to-market and credit valuation adjustments
(1,444) 1,534  NM (2,914) 2,147  NM

Total customer derivative income
2,201  5,764  (62) % 6,270  9,514  (34) %
Net gains on AFS debt securities
746  1,785  (58) % 877  1,834  (52) %

Other investment income 678  586  16  % 2,940  3,401  (14) %
Other income 5,662  3,645  55  % 8,481  7,539  12  %
Total noninterest income $ 86,178   $ 84,171   2   % $ 178,280   $ 162,658   10   %

Noninterest income as a percent of total revenue
12% 13% 13% 13%

NM — Not meaningful.

Noninterest income for the second quarter of 2025 was $86 million, an increase of $2 million or 2%, compared with the same prior year period. The year-over-year increase was primarily due to increases in other income, wealth management, lending and loan servicing, and commercial and consumer deposit-related fees, partially offset by lower customer derivative income. Noninterest income for the first half of 2025 was $178 million, an increase of $16 million or 10%, compared with the first half of 2024. The year-over-year increase was primarily due to higher wealth management fees, foreign exchange income, lending and loan servicing fees, and commercial and consumer deposit-related fees, partially offset by lower customer derivative income.

Commercial and consumer deposit-related fees were $27 million for the second quarter of 2025, an increase of $1 million or 5%, compared with the second quarter of 2024. For the first half of 2025, commercial and consumer deposit-related fees were $54 million, an increase of $3 million or 7%, compared with the first half of 2024. The year-over-year increases were primarily due to an increase in analysis service fees due to higher commercial customer activity.

Lending and loan servicing fees were $26 million for the second quarter of 2025, an increase of $1 million or 5%, compared with the second quarter of 2024. For the first half of 2025, lending and loan servicing fees were $52 million, an increase of $5 million or 10%, compared with the first half of 2024. The year-over-year increases were primarily due to higher credit enhancement and trade finance fees driven by increased customer activity.

Foreign exchange income was $14 million for the second quarter of 2025, an increase of approximately $1 million or 6%, compared with the second quarter of 2024. For the first half of 2025, foreign exchange income was $30 million, an increase of $5 million or 21%, compared with the first half of 2024. The year-over-year increases primarily reflected the favorable valuation of certain foreign currency denominated balance sheet items.

Wealth management fees were $11 million for the second quarter of 2025, an increase of $1 million or 13%, compared with the second quarter of 2024. For the first half of 2025, wealth management fees were $24 million, an increase of $6 million or 35%, compared with the first half of 2024. The year-over-year increases primarily reflected higher customer demand for wealth management products such as fixed-rate bonds and fixed income annuities.

Customer derivative income was $2 million for the second quarter of 2025, a decrease of $4 million or 62%, compared with the second quarter of 2024. For the first half of 2025, customer derivative income was $6 million, a decrease of $3 million or 34%, compared with the first half of 2024. The year-over-year decreases primarily reflected unfavorable credit valuation adjustments.
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Other income was $6 million for the second quarter of 2025, an increase of $2 million or 55%, compared with the second quarter of 2024. This increase primarily reflected higher returns from bank-owned life insurance. For the first half of 2025, other income was $8 million, an increase of approximately $1 million or 12%, compared with the first half of 2024. This increase primarily reflected an increase in advisory fees from the Company’s broker-dealer subsidiary and greater returns from bank-owned life insurance.

Noninterest Expense

The following table presents the components of noninterest expense for the second quarters and first halves of 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

($ in thousands) 2025 2024 % Change 2025 2024 % Change
Compensation and employee benefits $ 144,841  $ 133,588  8  % $ 291,276  $ 275,400  6  %
Occupancy and equipment expense 16,289  15,299  6  % 31,978  31,015  3  %
Deposit account expense 9,348  12,050  (22) % 18,390  24,238  (24) %
Computer and software related expenses 13,446  11,392  18  % 26,760  22,736  18  %
Deposit insurance premiums and regulatory assessments 9,133  10,708  (15) % 19,518  30,357  (36) %

Other operating expense 36,727  36,843  0  % 78,268  69,301  13  %
Amortization of tax credit and Community Reinvestment Act (“CRA”) investments
26,236  16,052  63  % 41,978  29,259  43  %

Total noninterest expense $ 256,020   $ 235,932   9   % $ 508,168   $ 482,306   5   %

Noninterest expense was $256 million for the second quarter of 2025, an increase of $20 million or 9%, compared with the second quarter of 2024. The year-over-year increase was primarily due to increases in compensation and employee benefits, amortization of tax credit and CRA investments, and computer and software related expenses, partially offset by a decrease in deposit account expense. For the first half of 2025, noninterest expense was $508 million, an increase of $26 million or 5%, compared with the first half of 2024. The year-over-year increase was primarily due to increases in compensation and employee benefits, amortization of tax credit and CRA investments, other operating expense, and computer and software related expenses, partially offset by decreases in deposit insurance premiums and regulatory assessments, and deposit account expense.

Compensation and employee benefits were $145 million for the second quarter of 2025, an increase of $11 million or 8%, compared with the second quarter of 2024. For the first half of 2025, compensation and employee benefits were $291 million, an increase of $16 million or 6%, compared with the first half of 2024. The increases were primarily driven by merit increases and staffing growth.

Deposit account expense was $9 million for the second quarter of 2025, a decrease of $3 million or 22%, compared with the second quarter of 2024. For the first half of 2025, deposit account expense was $18 million, a decrease of $6 million or 24%, compared with the first half of 2024. The decreases were driven primarily by lower balances and referral rates paid on certain deposit accounts.

Computer and software related expenses were $13 million for the second quarter of 2025, an increase of $2 million or 18%, compared with the second quarter of 2024. For the first half of 2025, computer and software expenses were $27 million, an increase of $4 million or 18%, compared with the first half of 2024. These increases primarily reflected higher software expenses and data processing costs.

Deposit insurance premiums and regulatory assessments were $9 million for the second quarter of 2025, a decrease of $2 million or 15%, compared with the second quarter of 2024. For the first half of 2025, deposit insurance premiums and regulatory assessments were $20 million, a decrease of $11 million or 36%, compared with the first half of 2024. The decreases were primarily due to additional FDIC special assessment charges (“FDIC charges”) of $2 million and $12 million recorded during the second quarter and first half of 2024, respectively. Adjustments to the FDIC charge pertain primarily to changes in the FDIC’s estimated losses to the Deposit Insurance Fund. For additional information on the FDIC charge, refer to It em 1. Business — Supervision and Regulation — FDIC Deposit Insurance Assessments in the Company’s 2024 Form 10-K.

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Other operating expense of $37 million for the second quarter of 2025 was essentially flat compared with the second quarter of 2024. For the first half of 2025, the $9 million or 13% increase in other operating expense to $78 million, compared with the first half of 2024 was primarily due to problem loan related expenses and higher consulting expenses for various Company initiatives.

Amortization of tax credit and CRA investments was $26 million for the second quarter of 2025, an increase of $10 million or 63%, compared with the second quarter of 2024. For the first half of 2025, amortization of tax credit and CRA investments was $42 million, an increase of $13 million or 43%, compared with the first half of 2024. The year-over-year increases were primarily due to the timing of tax credit investments that closed in a given period.

Income Taxes

Three Months Ended June 30, Six Months Ended June 30,
($ in thousands) 2025 2024 % Change 2025 2024 % Change
Income before income taxes $ 402,232  $ 364,468  10  % $ 793,387  $ 736,720  8  %
Income tax expense $ 91,979  $ 76,238  21  % $ 192,864  $ 163,415  18  %
Effective tax rate 22.9  % 20.9  % 24.3  % 22.2  %

Second quarter 2025 income tax expense was $92 million and the effective tax rate was 22.9%, compared with second quarter 2024 income tax expense of $76 million and an effective tax rate of 20.9%. For the first half of 2025, income tax expense was $193 million and the effective tax rate was 24.3%, compared with income tax expense of $163 million and an effective tax rate of 22.2% for the same period in 2024. The year-over-year increases in income tax expense and effective tax rate were primarily due to higher pre-tax income and the one-time revaluation of deferred tax assets due to the adoption of the California single sales factor apportionment method, partially offset by favorable adjustments from a lower California state tax apportionment. The Company recorded a $6 million increase in income tax expenses due to the adoption of the California single sales factor apportionment method, during the second quarter of 2025.

Operating Segment Results

The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels where customers are served, and the products and services provided. For a description of the Company’s internal management reporting process, including the segment cost allocation methodology, see Note 14 — Business Segments to the Consolidated Financial Statements in this Form 10-Q.

Segment net interest income represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process.

During the third quarter of 2024, the Company refined its segment allocation methodology and reclassified certain deposits and their related income or expenses from the “Consumer and Business Banking” segment to the “Commercial Banking” or “Treasury and Other” segments, and certain loan balances and their related income or expenses from the “Commercial Banking” segment to the “Treasury and Other” segment. The impacted 2024 balances have been reclassified for comparability.

Consumer and Business Banking

The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services.

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The following tables present financial information for the Consumer and Business Banking segment for the periods indicated:

Three Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income before provision for (reversal of) credit losses
$ 273,073  $ 292,593  $ (19,520) (7) %
Noninterest income 27,729  26,896  833  3  %
Total revenue
300,802  319,489  (18,687) (6) %
Provision for (reversal of) credit losses
6,775  (3,245) 10,020  NM
Compensation and employee benefits 58,151  53,743  4,408  8  %
Other noninterest expense
57,252  54,968  2,284  4  %
Total noninterest expense
115,403  108,711  6,692  6  %
Segment income before income taxes 178,624  214,023  (35,399) (17) %
Income tax expense 50,329  63,262  (12,933) (20) %
Segment net income $ 128,295  $ 150,761  $ (22,466) (15) %
Average loans $ 20,183,539  $ 18,785,998  $ 1,397,541  7  %
Average deposits $ 32,750,578  $ 30,438,157  $ 2,312,421  8  %

Six Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income before provision for (reversal of) credit losses
$ 542,806  $ 589,432  $ (46,626) (8) %
Noninterest income 60,014  52,318  7,696  15  %
Total revenue
602,820  641,750  (38,930) (6) %
Provision for (reversal of) credit losses
14,460  (681) 15,141  NM
Compensation and employee benefits 120,115  107,692  12,423  12  %
Other noninterest expense
114,444  118,139  (3,695) (3) %
Total noninterest expense
234,559  225,831  8,728  4  %
Segment income before income taxes 353,801  416,600  (62,799) (15) %
Income tax expense 102,418  123,139  (20,721) (17) %
Segment net income $ 251,383  $ 293,461  $ (42,078) (14) %
Average loans $ 19,974,077  $ 18,700,674  $ 1,273,403  7  %
Average deposits $ 32,539,912  $ 29,872,472  $ 2,667,440  9  %

NM — Not meaningful.

Consumer and Business Banking segment net income decreased $22 million or 15% year-over-year to $128 million for the second quarter of 2025, primarily driven by a $20 million decrease in net interest income, a $10 million increase in provision for credit losses and a $4 million increase in compensation and employee benefits. The decrease in net interest income was primarily due to the year-over-year decrease in interest rates. The increase in provision for credit losses was driven by loan growth and the worsening macroeconomic outlook in the residential mortgage loan sector in the second quarter of 2025. The compensation and employee benefits increase was primarily due to staffing growth.

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Consumer and Business Banking segment net income decreased $42 million or 14% year-over-year to $251 million for the first half of 2025, primarily driven by a $47 million decrease in net interest income, a $15 million increase in provision for credit losses, and a $12 million increase in compensation and employee benefits, partially offset by an $8 million increase in noninterest income and a $4 million decrease in other noninterest expense. The decrease in net interest income was primarily due to the year-over-year decrease in interest rates. The noninterest income increase was primarily due to increases in wealth management fees and foreign exchange income. The increase in provision for credit losses was driven by loan growth and the worsening macroeconomic outlook in the residential mortgage loan sector in the second quarter of 2025. The compensation and employee benefits increase was primarily due to staffing growth and increased wealth management commissions. The decrease in other noninterest expense was primarily driven by decreased deposit insurance premiums and regulatory assessments, from lower FDIC charges.

Commercial Banking

The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services, and interest rate and commodity risk hedging.

The following tables present financial information for the Commercial Banking segment for the periods indicated:

Three Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income before provision for credit losses $ 254,144  $ 278,286  $ (24,142) (9) %
Noninterest income 49,751  50,818  (1,067) (2) %
Total revenue
303,895  329,104  (25,209) (8) %
Provision for credit losses 38,724  40,155  (1,431) (4) %
Compensation and employee benefits 57,592  56,840  752  1  %
Other noninterest expense
36,053  39,997  (3,944) (10) %
Total noninterest expense
93,645  96,837  (3,192) (3) %
Segment income before income taxes 171,526  192,112  (20,586) (11) %
Income tax expense 48,319  56,568  (8,249) (15) %
Segment net income $ 123,207  $ 135,544  $ (12,337) (9) %
Average loans $ 33,767,859  $ 32,706,625  $ 1,061,234  3  %
Average deposits $ 26,318,154  $ 25,519,976  $ 798,178  3  %

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Six Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income before provision for credit losses $ 507,145  $ 566,902  $ (59,757) (11) %
Noninterest income 103,330  96,057  7,273  8  %
Total revenue before provision for credit losses
610,475  662,959  (52,484) (8) %
Provision for credit losses 79,503  63,062  16,441  26  %
Compensation and employee benefits 118,779  118,299  480  0  %
Other noninterest expense
78,371  84,351  (5,980) (7) %
Total noninterest expense
197,150  202,650  (5,500) (3) %
Segment income before income taxes 333,822  397,247  (63,425) (16) %
Income tax expense 96,590  117,060  (20,470) (17) %
Segment net income $ 237,232  $ 280,187  $ (42,955) (15) %
Average loans $ 33,490,986  $ 32,793,986  $ 697,000  2  %
Average deposits $ 26,225,420  $ 25,341,564  $ 883,856  3  %

Commercial Banking segment net income decreased $12 million or 9% year-over-year to $123 million for the second quarter of 2025, primarily driven by a $24 million decrease in net interest income, partially offset by a $4 million decrease in other noninterest expense. The net interest income decrease was primarily due to the year-over-year decline in interest rates. The decrease in other noninterest expense was primarily driven by the decreases in deposit account expense and other real estate owned (“OREO”) expense.

Commercial Banking segment net income decreased $43 million or 15% year-over-year to $237 million for the first half of 2025, primarily driven by a $60 million decrease in net interest income and a $16 million increase in provision for credit losses, partially offset by a $7 million increase in noninterest income and a $6 million decrease in other noninterest expense. The net interest income decrease was primarily driven by the year-over-year decline in interest rates, while the noninterest income increase was primarily due to increases in lending and loan servicing fees, commercial deposit-related fees and foreign exchange income. The increase in provision for credit losses was primarily driven by C&I loan growth and the worsening macroeconomic outlook. The decrease in other noninterest expense was primarily driven by the decreases in deposit account expense and deposit insurance premiums and regulatory assessments, partially offset by increased loan related expenses.

Treasury and Other

Centralized functions, including the corporate treasury activities of the Company, tax credit investment activity , eliminations of inter-segment amounts, and centrally managed departments, have been aggregated and included in the Treasury and Other segment. Tax credit investment amortization is recorded in the Treasury and Other segment.

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The following tables present financial information for the Treasury and Other segment for the periods indicated:

Three Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income (loss) before (reversal of) provision for credit losses
$ 89,857  $ (17,650) $ 107,507  NM
Noninterest income 8,698  6,457  2,241  35  %
Total revenue (loss)
98,555  (11,193) 109,748  NM
(Reversal of) provision for credit losses
(499) 90  (589) NM
Compensation and employee benefits 29,098  23,005  6,093  26  %
Other noninterest expense
17,874  7,379  10,495  142  %
Total noninterest expense
46,972  30,384  16,588  55  %
Segment income (loss) before income taxes
52,082  (41,667) 93,749  NM
Income tax benefit
6,669  43,592  (36,923) (85) %
Segment net income
$ 58,751  $ 1,925  $ 56,826  NM
Average loans $ 330,034  $ 426,165  $ (96,131) (23) %
Average deposits $ 4,609,100  $ 2,722,666  $ 1,886,434  69  %

Six Months Ended June 30,
Change from 2024

($ in thousands) 2025 2024 $ %
Net interest income (loss) before provision for (reversal of) credit losses
$ 167,324  $ (37,966) $ 205,290  NM
Noninterest income 14,936  14,283  653  5  %
Total revenue (loss)
182,260  (23,683) 205,943  NM
Provision for (reversal of) credit losses
37  (381) 418  NM
Compensation and employee benefits 52,382  49,409  2,973  6  %
Other noninterest expense
24,077  4,416  19,661  445  %
Total noninterest expense
76,459  53,825  22,634  42  %
Segment income (loss) before income taxes
105,764  (77,127) 182,891  NM
Income tax benefit
6,144  76,784  (70,640) (92) %
Segment net income (loss)
$ 111,908  $ (343) $ 112,251  NM
Average loans $ 347,116  $ 427,154  $ (80,038) (19) %
Average deposits $ 4,395,249  $ 2,847,565  $ 1,547,684  54  %

NM — Not meaningful.

The Treasury and Other segment income before income taxes increased $94 million for the second quarter of 2025, compared with the second quarter of 2024, primarily driven by a $108 million increase in net interest income, partially offset by a $10 million increase in other noninterest expense and a $6 million increase in compensation and employee benefits. The net interest income increase was mainly driven by higher average balances of AFS debt securities and higher loan interest income. The increase in other noninterest expense was primarily driven by higher amortization of tax credit and CRA investments, while the increase in compensation and employee benefits was primarily driven by staffing growth.

The Treasury and Other segment income before income taxes increased $183 million for the first half of 2025, primarily driven by a $205 million increase in net interest income, partially offset by a $20 million increase in other noninterest expense. The net interest income increase was mainly driven by higher interest income from AFS debt securities due to higher average balances, and higher loan interest income. The increase in other noninterest expense was primarily driven by higher amortization of tax credit and CRA investments and corporate overhead expenses.

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Income tax expense is allocated to the Consumer and Business Banking and the Commercial Banking segments by applying statutory income tax rates to the respective segment income before income taxes. The income tax expense or benefit in the Treasury and Other segment consists of the remaining unallocated income tax expense or benefit after allocating income tax expense to the two core segments, and reflects the impact of tax credit investment activity.

Balance Sheet Analysis

Debt Securities

The Company maintains a portfolio of high quality and liquid debt securities with a moderate duration profile. It closely manages the overall portfolio credit, interest rate and liquidity risks. The Company’s debt securities provide:

• interest income for earnings and yield enhancement;
• funding availability for needs arising during the normal course of business;
• the ability to execute interest rate risk management strategies in response to changes in economic or market conditions; and
• collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.

While the Company does not generally intend to sell or trade its debt securities, it may sell AFS debt securities in response to changes in the balance sheet and related interest rate risk to meet liquidity, regulatory and strategic requirements.

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The following table presents the distribution of the Company’s AFS and HTM debt securities portfolio as of June 30, 2025 and December 31, 2024, and by credit ratings as of June 30, 2025:

June 30, 2025 December 31, 2024 Ratings as of June 30, 2025 (1)

($ in thousands) Amortized Cost Fair Value % of Fair Value Amortized Cost Fair Value % of Fair Value AAA/AA A BBB BB and Lower No Rating (2)

AFS debt securities:
U.S. Treasury securities $ 756,268  $ 731,062  6 % $ 676,300  $ 638,265  6 % 100 % — % — % — % — %
U.S. government agency and U.S. government-sponsored enterprise (“GSE”) debt securities
305,615  270,292  2 % 308,220  262,587  3 % 100 % — % — % — % — %
U.S. government agency and U.S. GSE mortgage-backed securities (MBS”) (3)
9,987,224  9,764,910  78 % 8,447,303  8,164,474  75 % 100 % — % — % — % — %
Municipal securities 284,948  239,197  2 % 287,301  250,153  2 % 99 % — % — % — % 1 %
Non-agency MBS
735,014  636,330  6 % 808,762  692,078  6 % 96 % — % 1 % 1 % 2 %
Corporate debt securities 643,500  534,644  4 % 653,500  526,166  5 % — % 32 % 65 % 3 % — %
Foreign government bonds 244,744  235,343  2 % 244,803  233,880  2 % 46 % 54 % — % — % — %
Asset-backed securities 33,445  32,643  0 % 35,086  34,715  0 % 30 % 45 % 25 % — % — %
Collateralized loan obligations 44,500  44,492  0 % 44,500  44,493  1 % 100 % — % — % — % — %
Total AFS debt securities $ 13,035,258   $ 12,488,913   100 % $ 11,505,775   $ 10,846,811   100 % 94 % 3 % 3 % 0 % 0 %

HTM debt securities:
U.S. Treasury securities $ 537,851  $ 514,767  21 % $ 535,080  $ 499,858  21 % 100 % — % — % — % — %
U.S. government agency and U.S. GSE debt securities
1,005,738  838,222  34 % 1,004,479  804,220  34 % 100 % — % — % — % — %
U.S. government agency and U.S. GSE MBS (4)
1,162,624  944,681  39 % 1,190,221  943,134  39 % 100 % — % — % — % — %
Municipal securities 186,769  139,577  6 % 187,633  140,542  6 % 100 % — % — % — % — %
Total HTM debt securities $ 2,892,982   $ 2,437,247   100 % $ 2,917,413   $ 2,387,754   100 % 100 % — % — % — % — %
Total debt securities $ 15,928,240   $ 14,926,160   $ 14,423,188   $ 13,234,565  

(1) Credit ratings represent independent assessments of the credit quality of debt securities. The Company determines the credit rating of a debt security based on the lowest rating assigned by any of the nationally recognized statistical rating organizations (“NRSROs”) that have rated the security. Investment grade debt securities are those with ratings similar to BBB- or above (as defined by NRSROs), and are generally considered by the rating agencies and market participants to be low credit risk. Ratings percentages are allocated based on fair value.
(2) For debt securities not rated by NRSROs, factors such as the priority in collections within the securitization structure, and whether contractual payments have historically been on time are considered in determining the credit risk of such securities.
(3) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $8.9 billion of amortized cost and fair value as of June 30, 2025, and $7.3 billion of amortized cost and $7.2 billion of fair value as of December 31, 2024.
(4) Includes GNMA HTM debt securities totaling $82 million of amortized cost and $65 million of fair value as of June 30, 2025, and $86 million of amortized cost and $68 million of fair value as of December 31, 2024.

The Company’s AFS and HTM debt securities portfolios had an effective duration (defined as the sensitivity of the value of the portfolio to interest rate changes) of 2.3 and 6.7, respectively, as of June 30, 2025, compared with 2.4 and 7.0, respectively, as of December 31, 2024. The AFS debt securities’ effective duration was relatively unchanged, while the HTM debt securities’ effective duration declined slightly due to the downward shift in the yield curve and portfolio seasoning.

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Available-for-Sale Debt Securities

AFS debt securities increased $1.6 billion or 15% from December 31, 2024 to $12.5 billion as of June 30, 2025, primarily due to t he purchases of GNMA securities. The Company’s AFS debt securities are carried at fair value with non-credit related unrealized gains and losses, net of tax, reported in Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income. Pre-tax net unrealized losses on AFS debt securities were $546 million as of June 30, 2025, compared with $659 million as of December 31, 2024.

Of the AFS debt securities with gross unrealized losses, substantially all were rated investment grade as of both June 30, 2025 and December 31, 2024. There was no allowance for credit losses provided against the AFS debt securities as of both June 30, 2025 and December 31, 2024. Additionally, there were no credit losses recognized in earnings for the second quarters and first halves of 2025 and 2024.

Held-to-Maturity Debt Securities

All HTM debt securities were issued, guaranteed, or supported by the U.S. government or GSE. Accordingly, the Company applied a zero credit loss assumption for these securities and no allowance for credit loss was recorded as of both June 30, 2025 and December 31, 2024.

For additional information on AFS and HTM securities, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2024 Form 10-K and Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 4 — Securities to the Consolidated Financial Statements in this Form 10-Q.

Loan Portfolio

The Company offers a broad range of financial products designed to meet the credit needs of its borrowers. The Company’s loan portfolio segments include commercial loans, which consist of C&I, CRE, multifamily residential, and construction and land loans, as well as consumer loans, which consist of single-family residential, home equity lines of credit (“HELOCs”) and other consumer loans. The composition of the loan portfolio as of June 30, 2025 was similar to the composition as of December 31, 2024.

The following charts present the composition of the Company’s loans held-for-investment portfolio by loan type as of June 30, 2025 and December 31, 2024:

Total loans held-for-investment of $55.0 billion as of June 30, 2025 increased $1.2 billion or 2% from December 31, 2024, reflecting well-balanced growth across our major loan types. For additional information on our loans held-for-investment outstanding balances, see Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

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Commercial

The commercial loan portfolio, which includes C&I and total CRE loans, comprised 69% and 70% of total loans held-for-investment as of June 30, 2025 and December 31, 2024, respectively. The Company actively monitors the commercial lending portfolio for credit risk and reviews credit exposures for sensitivity to changing economic conditions.

Commercial — Commercial and Industrial Loans. Total C&I loan commitments were $26.6 billion and $25.8 billion as of June 30, 2025 and December 31, 2024, respectively, with a utilization rate of 67% as of both dates. As of June 30, 2025, total C&I loans were $17.8 billion, up $426 million or 2% from December 31, 2024. The C&I loan portfolio includes loans and financing for businesses across a wide spectrum of industries. The Company offers a variety of C&I products, including but not limited to commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance and equipment financing. Additionally, the Company has a portfolio of broadly syndicated C&I loans, which represent revolving or term loan facilities that are marketed and sold primarily to institutional investors. This portfolio totaled $1.0 billion and $845 million as of June 30, 2025 and December 31, 2024, respectively. The majority of the C&I loans had variable interest rates as of both June 30, 2025 and December 31, 2024.

The C&I portfolio is well-diversified by industry. The Company monitors concentrations within the C&I loan portfolio by industry and customer exposure, and has exposure limits by industry and loan product. The following table presents the industry mix within the Company’s C&I loan portfolio as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024
($ in thousands) Amount % Amount %
Industry:
Real estate investment & management $ 2,322,603  13 % $ 2,381,186  14 %
Capital call lending 2,222,265  13 % 2,230,457  13 %
Media & entertainment 2,126,192  12 % 2,031,242  12 %
Manufacturing & wholesale 1,182,092  7 % 1,074,073  6 %
Financial services 1,074,664  6 % 1,005,216  6 %
Infrastructure & clean energy 1,061,577  6 % 963,165  6 %
Food production & distribution 789,613  4 % 664,135  4 %
Tech & telecom 724,722  4 % 770,521  4 %
Healthcare services 711,409  4 % 685,549  4 %
Hospitality & leisure 599,803  3 % 575,815  3 %
Oil & gas 568,383  3 % 576,605  3 %
Art finance 537,693  3 % 548,065  3 %
Other 3,901,865  22 % 3,891,129  22 %
Total C&I $ 17,822,881   100 % $ 17,397,158   100 %

Commercial — Total Commercial Real Estate Loans. The total CRE portfolio consists of CRE, multifamily residential, and construction and land loans. The Company’s underwriting parameters for CRE loans are established in compliance with supervisory guidance, including property type, geography and loan-to-value (“LTV”).

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The Company’s total CRE loan portfolio is well-diversified by property type with an average CRE loan size of $3 million as of both June 30, 2025 and December 31, 2024. The following table summarizes the Company’s total CRE loans by property type as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024
($ in thousands) Amount % Weighted Avg. LTV (%) (1)
Amount % Weighted Avg. LTV (%) (1)

Property types:
Multifamily $ 4,978,915  24 % 50 % $ 4,953,442  24 % 51 %
Retail
4,459,930  22 % 47 % 4,347,032  21 % 48 %
Industrial
4,101,875  20 % 47 % 3,972,389  20 % 46 %
Hotel
2,382,772  12 % 51 % 2,404,385  12 % 52 %
Office
2,167,449  10 % 52 % 2,125,210  11 % 54 %
Healthcare
819,732  4 % 51 % 788,806  4 % 52 %
Construction and land 709,713  3 % 49 % 666,162  3 % 49 %
Other
1,047,017  5 % 49 % 1,017,518  5 % 50 %
Total CRE loans $ 20,667,403   100 % 49 % $ 20,274,944   100 % 50 %

(1) Weighted average LTV is based on most recent LTV, using the most recent available appraisal and current loan commitment.

The following tables provide a summary of the Company’s CRE, multifamily residential, and construction and land loans by geography as of June 30, 2025 and December 31, 2024. The distribution of the total CRE loan portfolio largely reflects the Company’s geographical branch footprint, which is primarily concentrated in California.

June 30, 2025
($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE %
Geographic markets:
Southern California $ 7,703,705  52 % $ 2,290,651  46 % $ 258,867  36 % $ 10,253,223  49 %
Northern California 2,754,840  18 % 957,478  19 % 176,235  25 % 3,888,553  19 %
California 10,458,545  70 % 3,248,129  65 % 435,102  61 % 14,141,776  68 %
Texas 1,184,273  8 % 498,873  10 % 134,590  19 % 1,817,736  9 %
New York 746,077  5 % 263,918  5 % 28,769  4 % 1,038,764  5 %
Washington 501,843  3 % 158,780  3 % 9,927  2 % 670,550  3 %
Arizona 313,649  2 % 174,533  4 % 34,696  5 % 522,878  3 %
Nevada 293,000  2 % 150,182  3 % —  — % 443,182  2 %
Other markets 1,481,388  10 % 484,500  10 % 66,629  9 % 2,032,517  10 %
Total loans $ 14,978,775   100 % $ 4,978,915   100 % $ 709,713   100 % $ 20,667,403   100 %

December 31, 2024
($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE %
Geographic markets:
Southern California $ 7,516,638  51 % $ 2,316,404  47 % $ 230,297  35 % $ 10,063,339  50 %
Northern California 2,693,768  19 % 992,406  20 % 163,633  24 % 3,849,807  19 %
California 10,210,406  70 % 3,308,810  67 % 393,930  59 % 13,913,146  69 %
Texas 1,091,626  8 % 467,796  9 % 131,963  20 % 1,691,385  8 %
New York 732,694  5 % 249,357  5 % 44,597  7 % 1,026,648  5 %
Washington 493,972  3 % 155,022  3 % 10,401  1 % 659,395  3 %
Arizona 348,877  2 % 182,955  4 % 23,903  4 % 555,735  3 %
Nevada 293,927  2 % 139,292  3 % —  — % 433,219  2 %
Other markets 1,483,838  10 % 450,210  9 % 61,368  9 % 1,995,416  10 %
Total loans $ 14,655,340   100 % $ 4,953,442   100 % $ 666,162   100 % $ 20,274,944   100 %

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The percentage of total CRE loans located in California was 68% and 69%, as of June 30, 2025 and December 31, 2024, respectively. Changes in California’s economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan losses. For additional information related to the higher degree of risk from a downturn in the California economic and real estate markets, see Item 1A. Risk Factors — Risks Related to Geopolitical Uncertainties and Risks Related to Financial Matters in the Company’s 2024 Form 10-K.

Commercial — Commercial Real Estate Loans. The Company focuses on providing financing to experienced real estate investors and developers who have moderate levels of leverage, many of whom are long-time customers of the Bank. The Company seeks to underwrite loans with conservative standards for cash flows, debt service coverage and LTV. Owner-occupied properties comprised 20% of the CRE loans as of both June 30, 2025 and December 31, 2024. The remainder were non-owner-occupied properties, where 50% or more of the debt service for the loan is typically provided by rental income from an unaffiliated third party.

Interest rates on CRE loans may be fixed, variable or hybrid. The Company offers derivative hedging products to our customers to manage their interest rate risks. As of June 30, 2025, of the 57% of our CRE portfolio that had variable rates, 53% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2024, of the 57% of our CRE portfolio that had variable rates, 54% had customer-level interest rate derivative contracts in place.

Commercial — Multifamily Residential Loans. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units. The Company offers a variety of first lien mortgages, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust annually after an initial fixed rate period of three to ten years. The Company also offers hedging products to our customers to manage their interest rate risks. As of June 30, 2025, of the 48% of our multifamily residential portfolio that had variable rates, 52% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2024, of the 50% of our multifamily residential portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place.

Commercial — Construction and Land Loans. Construction and land loans provide financing for a portfolio of projects diversified by real estate property type. Construction loan exposure was comprised of $541 million in loans outstanding, and $405 million in unfunded commitments as of June 30, 2025, compared with $506 million in loans outstanding, and $391 million in unfunded commitments as of December 31, 2024. Land loans totaled $169 million and $160 million as of June 30, 2025 and December 31, 2024, respectively.

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Consumer

Residential mortgage loans are primarily originated through the Bank’s branch network. The average total residential mortgage loan size was $438 thousand and $437 thousand as of June 30, 2025 and December 31, 2024, respectively. The following tables summarize the Company’s single-family residential and HELOC loan portfolios by geography as of June 30, 2025 and December 31, 2024:

June 30, 2025
($ in thousands) Single-Family Residential % HELOCs % Total Residential Mortgage %
Geographic markets:
Southern California $ 5,760,644  40 % $ 856,098  46 % $ 6,616,742  40 %
Northern California 1,919,265  13 % 389,595  21 % 2,308,860  14 %
California 7,679,909  53 % 1,245,693  67 % 8,925,602  54 %
New York 4,188,356  29 % 285,076  15 % 4,473,432  27 %
Washington 731,831  5 % 192,798  11 % 924,629  6 %
Massachusetts 493,667  3 % 63,756  4 % 557,423  4 %
Georgia 491,093  3 % 22,174  1 % 513,267  3 %
Nevada 474,807  3 % 35,942  2 % 510,749  3 %
Texas 497,550  4 % —  — % 497,550  3 %
Other markets 12,784  0 % 5,526  0 % 18,310  0 %
Total $ 14,569,997   100 % $ 1,850,965   100 % $ 16,420,962   100 %
Lien priority:
First mortgage $ 14,569,997  100 % $ 1,326,720  72 % $ 15,896,717  97 %
Junior lien mortgage —  — % 524,245  28 % 524,245  3 %
Total $ 14,569,997   100 % $ 1,850,965   100 % $ 16,420,962   100 %

December 31, 2024
($ in thousands) Single-Family Residential % HELOCs % Total Residential Mortgage %
Geographic markets:
Southern California $ 5,475,929  39 % $ 853,858  47 % $ 6,329,787  39 %
Northern California 1,825,462  13 % 379,692  21 % 2,205,154  14 %
California 7,301,391  52 % 1,233,550  68 % 8,534,941  53 %
New York 4,303,815  31 % 266,529  15 % 4,570,344  29 %
Washington 715,968  5 % 187,220  10 % 903,188  6 %
Massachusetts 457,147  3 % 66,181  4 % 523,328  3 %
Georgia 466,790  3 % 20,040  1 % 486,830  3 %
Nevada 447,097  3 % 32,578  2 % 479,675  3 %
Texas 468,461  3 % —  — % 468,461  3 %
Other markets 14,777  0 % 5,530  0 % 20,307  0 %
Total $ 14,175,446   100 % $ 1,811,628   100 % $ 15,987,074   100 %
Lien priority:
First mortgage $ 14,175,446  100 % $ 1,322,957  73 % $ 15,498,403  97 %
Junior lien mortgage —  — % 488,671  27 % 488,671  3 %
Total $ 14,175,446   100 % $ 1,811,628   100 % $ 15,987,074   100 %

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Consumer — Single-Family Residential Loans. The Company offers a variety of single-family residential mortgage loan programs, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust on a regular basis, typically annually, after an initial fixed rate period. The Company was in a first lien position in all of its single-family residential loans as of both June 30, 2025 and December 31, 2024. Many of these loans are reduced documentation loans, for which a substantial down payment is required, resulting in a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 52% as of both June 30, 2025 and December 31, 2024. These loans have historically experienced low delinquency and loss rates.

Consumer — Home Equity Lines of Credit. Total HELOC commitments were $5.4 billion and $5.3 billion as of June 30, 2025 and December 31, 2024, respectively, with a utilization rate of 34% as of both dates. Substantially all of the Company’s unfunded HELOC commitments are unconditionally cancellable. The Company was in a first lien position for 72% and 73% of total outstanding HELOCs as of June 30, 2025 and December 31, 2024, respectively. Many of these loans are reduced documentation loans, which have a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 46% as of both June 30, 2025 and December 31, 2024. As a result, these loans have historically experienced low delinquency and loss rates. Substantially all of the Company’s HELOCs were variable-rate as of both June 30, 2025 and December 31, 2024.

All originated commercial and consumer loans are subject to the Company’s conservative underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks associated with these products. The Company conducts quality control procedures and periodic audits, including the review of lending and legal requirements, to ensure that the Company is in compliance with these requirements.

Foreign Outstandings

The Company’s international branches, which include the branch in Hong Kong and the subsidiary bank’s branches in China, are subject to the general risks inherent in conducting business in foreign countries, such as regulatory, economic and political uncertainties, and foreign currency exchange rate risks. The following table presents the major financial assets held in the Company’s international branches as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024
($ in thousands) Amount % of Total Consolidated Assets Amount % of Total Consolidated Assets
Hong Kong branch:
Cash and cash equivalents $ 960,724  1 % $ 730,227  1 %

AFS debt securities (1)
$ 718,823  1 % $ 752,840  1 %
Loans held-for-investment (2)
$ 1,053,095  1 % $ 968,973  1 %
Total assets $ 2,737,676  4 % $ 2,474,447  3 %
China subsidiary bank branches:

Cash and cash equivalents $ 621,719  1 % $ 656,971  1 %

AFS debt securities (3)
$ 126,855  0 % $ 127,582  0 %
Loans held-for-investment (2)
$ 1,197,582  2 % $ 1,141,444  2 %
Total assets $ 2,035,424  3 % $ 1,971,922  3 %

(1) Comprised of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, U.S. Treasury securities, and foreign government bonds as of June 30, 2025 and December 31, 2024.
(2) Comprised primarily of C&I loans as of both June 30, 2025 and December 31, 2024.
(3) Comprised of foreign government bonds as of both June 30, 2025 and December 31, 2024.

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The following table presents the total revenue generated by the Company’s international branches for the second quarters and first halves of 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
($ in thousands) Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue
Hong Kong branch:

Total revenue $ 17,791  3 % $ 15,420  2 % $ 35,604  3 % $ 33,513  3 %
China subsidiary bank branches:

Total revenue $ 6,740  1 % $ 7,320  1 % $ 14,492  1 % $ 14,764  1 %

Deposits

Deposits are the Company’s primary source of funding, the cost of which has a significant impact on the Company’s net interest income and net interest margin. The following table summarizes the Company’s deposits by product type as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024 Change
($ in thousands) Amount % Amount % $ %
Deposits by product:

Noninterest-bearing demand $ 15,470,239  24  % $ 15,450,428  24  % $ 19,811  0  %
Interest-bearing checking 8,143,893  12  % 7,940,692  13  % 203,201  3  %
Money market 15,420,318  24  % 14,816,511  23  % 603,807  4  %
Savings 1,683,703  3  % 1,751,620  3  % (67,917) (4) %

Time deposits 24,311,340  37  % 23,215,772  37  % 1,095,568  5  %
Total deposits $ 65,029,493   100   % $ 63,175,023   100   % $ 1,854,470   3   %

The Company’s strategy is to grow and retain relationship-based deposits to provide a stable and low-cost source of funding and liquidity. The Company offers a wide variety of deposit products to meet the needs of its consumer and commercial customers. As a result, we believe our deposit base is seasoned, stable and well-diversified. Total deposits of $65.0 billion as of June 30, 2025 increased $1.9 billion from December 31, 2024, primarily due to growth in time deposits and money market deposits.

The following table provides a breakdown of the Company’s deposits by segment and region as of June 30, 2025 and December 31, 2024:

Change

($ in thousands)
June 30, 2025 December 31, 2024 $ %
Deposits by segment/region:

Consumer and Business Banking - U.S. (1)
$ 33,407,064  $ 32,832,926  $ 574,138  2  %
Commercial Banking - U.S. (1)
23,595,005  23,405,769  189,236  1  %
International Branches (2)
3,579,005  3,412,262  166,743  5  %
Treasury and Other - U.S. (3)
4,448,419  3,524,066  924,353  26  %
Total deposits $ 65,029,493   $ 63,175,023   $ 1,854,470   3   %

(1) Excludes deposits presented under International Branches.
(2) Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.
(3) Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.

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Customer deposit accounts in the U.S. branches are insured by the FDIC for up to $250,000 per depositor, per ownership category. Management believes that presenting uninsured domestic deposits with an adjustment to exclude collateralized and affiliate deposits provides a more accurate view of the deposits at risk, given that collateralized deposits are secured, and affiliate deposits are not customer-facing and are eliminated in consolidation. The following table summarizes the Company’s uninsured domestic deposit balances reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report as of June 30, 2025 and December 31, 2024, after certain adjustments:

($ in thousands) June 30, 2025 December 31, 2024
Uninsured deposits, per regulatory requirements (1)
$ 32,156,850  $ 32,767,680 
Less: Collateralized deposits
(4,872,602) (4,781,377)
Affiliate deposits (114,393) (485,824)
Uninsured deposits, excluding collateralized and affiliate deposits (a) $ 27,169,855   $ 27,500,479  

Total domestic deposits per Call Report (b) $ 61,685,067   $ 60,326,394  
Uninsured deposits, excluding collateralized and affiliate deposits, ratio (a)/(b)
44   % 46   %

(1) Uninsured deposits, per regulatory requirements, represent the portion of deposit accounts in U.S. branches that exceed the FDIC insurance limit as reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report.

Additional information regarding the impact of deposits on net interest income, with a comparison of average deposit balances and rates, is provided in Item 2. MD&A — Results of Operations — Net Interest Income in this Form 10-Q. See also the discussion of the impact of deposits on liquidity in Item 2. MD&A — Liquidity Risk Management in this Form 10-Q.

Capital

The Company maintains a strong capital base to support its anticipated asset growth, operating needs, and credit risk exposures, and to ensure that the Company and the Bank are in compliance with all regulatory capital guidelines. The Company engages in regular capital planning processes on at least an annual basis to optimize the use of available capital and to appropriately plan for future capital needs, allocating capital to existing and future business activities. Furthermore, the Company conducts capital stress tests as part of its capital planning process. The stress tests enable the Company to assess the impact of adverse changes in the economy and interest rates on its capital base.

The Company’s stockholders’ equity as of June 30, 2025 increased $479 million or 6% to $8.2 billion from December 31, 2024. The increase was primarily due to $601 million of net income and $123 million of other comprehensive income, partially offset by $168 million of cash dividends declared and $106 million of common stock repurchases from the open market and also in the form of tax withholding on vested restricted stock units. For other factors that contributed to the changes in stockholders’ equity, refer to Item 1. Consolidated Financial Statements — Consolidated Statement of Changes in Stockholders’ Equit y in this Form 10-Q.

On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to an additional $300 million of East West common stock, which will remain valid until December 31, 2026. The Company repurchased $3 million and $41 million of its common stock during the second quarters of 2025 and 2024, respectively, an d $88 million and $123 million of common stock in the first halves of 2025 and 2024, respectively.

The Company paid a quarterly common stock cash dividend of $0.60 and $0.55 per share during the second quarters of 2025 and 2024, respectively. In July 2025, the Company’s Board of Directors declared a third quarter 2025 cash dividend of $0.60 per share. The dividend is payable on August 15, 2025, to stockholders of record as of August 4, 2025.

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Regulatory Capital and Ratios

The federal banking agencies have risk-based capital adequacy requirements intended to ensure that banking organizations maintain capital that is commensurate with the degree of risk associated with their operations. The Company and the Bank are each subject to these regulatory capital adequacy requirements. See Item 1. Business — Supervision and Regulation — Regulatory Capital Requirements and Regulatory Capital-Related Development in the Company’s 2024 Form 10-K for additional details.

The following table presents the Company’s and the Bank’s capital ratios as of June 30, 2025 and December 31, 2024 under the Basel III Capital Rules, and those required by regulatory agencies for capital adequacy and well-capitalized classification purposes:

Basel III Capital Rules
June 30, 2025 December 31, 2024 (1)

Company Bank Company Bank Minimum Regulatory Requirements Minimum Regulatory Requirements including Capital Conservation Buffer Well-Capitalized Requirements
Risk-based capital ratios:
Common Equity Tier 1 (“CET1”) capital (2)
14.5 % 13.6 % 14.3 % 13.4 % 4.5 % 7.0 % 6.5 %
Tier 1 capital (3)
14.5 % 13.6 % 14.3 % 13.4 % 6.0 % 8.5 % 8.0 %
Total capital 15.8 % 14.9 % 15.6 % 14.7 % 8.0 % 10.5 % 10.0 %
Tier 1 leverage (2)
10.6 % 10.0 % 10.4 % 9.8 % 4.0 % 4.0 % 5.0 %

(1) The Current Expected Credit Losses (“CECL”) transition provision permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the aggregate benefit is reduced by 25% in 2022, 50% in 2023 and 75% in 2024. Our capital ratios as of December 31, 2024 include a delay of 25% of the estimated impact of CECL on regulatory capital. The CECL transition was no longer in effect as of June 30, 2025.
(2) CET1 capital and Tier 1 leverage well-capitalized requirements apply to the Bank only. There are no well-capitalized requirements on CET1 capital ratio or Tier 1 leverage ratio for bank holding companies.
(3) Well-capitalized Tier 1 capital ratio requirements for the Company and the Bank are 6.0% and 8.0%, respectively.

The Company is committed to maintaining strong capital levels to assure its investors, customers and regulators that the Company and the Bank are financially sound. As of both June 30, 2025 and December 31, 2024, the Company and the Bank continued to exceed all “well-capitalized” capital requirements and the minimum capital requirements under the Basel III Capital Rules. Total risk-weighted assets increased $1.3 billion to $56.3 billion from December 31, 2024. The increase in the risk-weighted assets was mainly due to loan growth.

Risk Management

Overview

In the normal course of business, the Company is exposed to a variety of risks, some of which are inherent to the financial services industry and others, which are more specific to the Company’s business. The Company operates under a Board-approved enterprise risk management (“ERM”) program. The Company’s ERM program outlines the company-wide approach to risk management and oversight, and describes the structures and practices employed to manage current and emerging risks inherent to the Company. The Company’s ERM program incorporates risk management throughout the organization in identifying, managing, monitoring, and reporting risks. It identifies the Company’s major risk categories as: credit, liquidity, market, operational, reputational, legal, compliance, Bank Secrecy Act/Anti-Money Laundering & Office of Foreign Assets Control, strategic, and technology risk.

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The Risk Oversight Committee (“ROC”) of the Board of Directors monitors the ERM program through such identified enterprise risk categories and provides oversight of the Company’s risk appetite and control environment. The ROC provides focused oversight of the Company’s identified enterprise risk categories on behalf of the full Board of Directors. Under the authority of the ROC, management committees apply targeted strategies to manage the risks to which the Company’s operations are exposed.

The Company’s ERM program is executed along the three lines of defense model, which provides for a consistent and standardized risk management control environment across the enterprise. The first line of defense is comprised of revenue generating, operational and support units. The second line of defense is comprised of risk management and control functions that provide independent risk oversight of first line activities and report to the Chief Risk Officer. The Chief Risk Officer reports to both the ROC and the Chief Executive Officer. The third line of defense is comprised of the Internal Audit and Independent Asset Review (“IAR”) functions. Internal Audit reports to the Chief Audit Executive (“CAE”), who reports to the Board’s Audit Committee. Internal Audit provides assurance and evaluates the effectiveness of risk management, control, and governance processes as established by the Company. IAR serves as an internal loan review and independent credit risk monitoring function within the Bank that works under the direction of the CAE and reports to the Audit Committee. IAR provides management and the Audit Committee with an objective and independent assessment of the Bank’s credit profile and credit risk management processes. Further discussion and analysis of selected primary risk areas are discussed in the following subsections of Risk Management.

Credit Risk Management

Credit risk is the risk that a borrower or a counterparty will fail to perform according to the terms and conditions of a loan, investment or derivative and expose the Company to loss. Credit risk exists with many of the Company’s assets and exposures such as loans, debt securities and certain derivatives. The majority of the Company’s credit risk is associated with lending activities.

The ROC has primary oversight responsibility for the identified enterprise risk categories including credit risk. The ROC monitors management’s assessment of asset quality, credit risk trends, credit quality administration, underwriting standards, and portfolio credit risk management strategies and processes, such as diversification and liquidity, all of which enable management to control credit risk. At the management level, the Credit Risk Management Committee has primary oversight responsibility for credit risk. The Senior Credit Supervision function manages credit policy for the line of business transactional credit risk, assuring that all exposure is risk-rated according to the requirements of the credit risk rating policy. The Senior Credit Supervision function, in connection with the ERM function, also evaluates and reports the overall credit risk exposure to senior management and the ROC, including concentration limits and key risk indicators. Reporting directly to the Board’s Audit Committee, the IAR function provides additional validation support to the Company’s robust credit risk management culture by performing an independent and objective assessment of underwriting and documentation quality, and serves as an assurance function for the risk rating of the Company’s loan portfolios. A key focus of our credit risk management is adherence to a well-controlled underwriting and loan monitoring process.

The Company assesses the overall performance and credit quality of the loans held-for-investment portfolio through an integrated analysis of specific performance ratios. This approach forms the basis of the discussion in the sections immediately following: Credit Quality, Nonperforming Assets and Allowance for Credit Losses.

Credit Quality

The Company utilizes a credit risk rating system to assist in monitoring credit quality. Loans are evaluated using the Company’s internal credit risk rating of 1 through 10. For more information on the Company’s credit quality indicators and internal credit risk ratings, refer to Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

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The following table presents the Company’s criticized loans as of June 30, 2025 and December 31, 2024:

Change
($ in thousands) June 30, 2025 December 31, 2024 $ %
Criticized loans:
Special mention loans $ 446,665  $ 447,290  $ (625) 0  %
Classified loans (1)
736,228  725,863  10,365  1  %
Total criticized loans
$ 1,182,893   $ 1,173,153   $ 9,740   1   %

Special mention loans to loans held-for-investment 0.81  % 0.83  %
Classified loans to loans held-for-investment 1.34  % 1.35  %
Criticized loans to loans held-for-investment 2.15  % 2.18  %

(1) Consists of substandard, doubtful and loss categories.

Criticized loans increased $10 million or 1%, to $1.2 billion during the first half of 2025, primarily driven by higher criticized CRE loans, partially offset by lower criticized C&I loans and multifamily residential loans.

Nonperforming Assets

Nonperforming assets are comprised of nonaccrual loans, OREO and other nonperforming assets. Other nonperforming assets and OREO are repossessed assets and properties, respectively, acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment.

The following table presents nonperforming assets information as of June 30, 2025 and December 31, 2024:

Change
($ in thousands) June 30, 2025 December 31, 2024 $ %
Commercial:
C&I $ 71,894  $ 86,165  $ (14,271) (17) %
CRE:
CRE 9,093  2,430  6,663  274  %
Multifamily residential 327  4,572  (4,245) (93) %
Construction and land —  11,316  (11,316) (100) %
Total CRE 9,420  18,318  (8,898) (49) %
Consumer:
Residential mortgage:
Single-family residential 33,247  32,423  824  3  %
HELOCs 24,756  22,046  2,710  12  %
Total residential mortgage 58,003  54,469  3,534  6  %
Other consumer 137  66  71  108  %
Total nonaccrual loans 139,454  159,018  (19,564) (12) %
OREO, net 32,224  35,077  (2,853) (8) %

Total nonperforming assets $ 171,678   $ 194,095   $ (22,417) (12) %
Nonperforming assets to total assets
0.22 % 0.26 %
Nonaccrual loans to loans held-for-investment 0.25 % 0.30 %
Allowance for loan losses to nonaccrual loans 545.28 % 441.49 %

Loans are generally placed on nonaccrual status at the earlier of when they become 90 days past due or when the full collection of principal or interest becomes uncertain, regardless of the length of past due status. Collectability is generally assessed based on economic and business conditions, the borrower’s financial condition, and the adequacy of collateral, if any. For additional details regarding the Company’s nonaccrual loan policy, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment  to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.
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Nonaccrual loans of $139 million as of June 30, 2025 decreased $20 million or 12% from December 31, 2024, primarily driven by a commercial nonaccrual loan that was transferred to OREO and the charge-offs of one commercial and one construction nonaccrual loan. As of June 30, 2025, $36 million or 26% of nonaccrual loans were less than 90 days delinquent. In comparison, $49 million or 31% of nonaccrual loans were less than 90 days delinquent as of December 31, 2024.

The following table presents the accruing loans past due by portfolio segment as of June 30, 2025 and December 31, 2024:

Total Accruing Past Due Loans (1)
Change Percentage of
Total Loans Outstanding

($ in thousands) June 30,
2025 December 31,
2024 $ % June 30,
2025 December 31,
2024
Commercial:
C&I $ 13,094  $ 22,855  $ (9,761) (43) % 0.07  % 0.13  %
CRE:
CRE 30,958  5,640  25,318  449  % 0.21  % 0.04  %
Multifamily residential 1,577  931  646  69  % 0.03  % 0.02  %
Construction and land 8,897  927  7,970  NM 1.25  % 0.14  %
Total CRE 41,432  7,498  33,934  453  % 0.20  % 0.04  %
Total commercial 54,526   30,353   24,173   80   % 0.14   % 0.08   %
Consumer:
Residential mortgage:
Single-family residential 77,305  54,937  22,368  41  % 0.53  % 0.39  %
HELOCs 19,498  19,364  134  1  % 1.05  % 1.07  %
Total residential mortgage 96,803  74,301  22,502  30  % 0.59  % 0.46  %
Other consumer 122  107  15  14  % 0.24  % 0.16  %
Total consumer 96,925   74,408   22,517   30   % 0.59   % 0.46   %
Total $ 151,451   $ 104,761   $ 46,690   45   % 0.28   % 0.19   %

NM — Not meaningful.
(1) There were no accruing loans past due 90 days or more as of both June 30, 2025 and December 31, 2024.

Allowance for Credit Losses

The Company maintains its allowance for credit losses at a level it believes is sufficient to provide appropriate reserves to absorb estimated future credit losses in accordance with GAAP. For additional information on the policies, methodologies and judgments used to determine the allowance for credit losses, see Item 7. MD&A — Critical Accounting Estimates and Item 8. Financial Statements — Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2024 Form 10-K, and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

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The following table presents an allocation of the allowance for loan losses by loan portfolio segments and unfunded credit commitments as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024
($ in thousands) Allowance Allocation % of Loan Type to Total Loans Allowance Allocation % of Loan Type to Total Loans
Allowance for loan losses
Commercial:
C&I $ 442,291  33 % $ 384,319  32 %
CRE:
CRE 212,618  27 % 218,677  28 %
Multifamily residential 29,073  9 % 32,117  9 %
Construction and land 17,856  1 % 17,497  1 %
Total CRE 259,547  37 % 268,291  38 %
Total commercial 701,838   70 % 652,610   70 %
Consumer:
Residential mortgage:
Single-family residential 51,997  27 % 44,816  27 %
HELOCs 5,256  3 % 3,132  3 %
Total residential mortgage 57,253  30 % 47,948  30 %
Other consumer 1,325  0 % 1,494  0 %
Total consumer 58,578   30 % 49,442   30 %
Total allowance for loan losses $ 760,416   100 % $ 702,052   100 %
Allowance for unfunded credit commitments $ 45,307   $ 39,526  
Total allowance for credit losses $ 805,723   $ 741,578  

Loans held-for-investment $ 54,961,184   $ 53,726,637  
Allowance for loan losses to loans held-for-investment 1.38 % 1.31 %

Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Average loans held-for-investment $ 54,281,289  $ 51,916,328  $ 53,812,106  $ 51,920,323 
Net charge-offs
$ 14,651  $ 23,135  $ 29,932  $ 45,712 
Annualized net charge-offs to average loans held-for-investment 0.11  % 0.18  % 0.11  % 0.18  %

Liquidity Risk Management

Liquidity. Liquidity risk arises from the Company’s inability to meet its customer deposit withdrawals and obligations to other counterparties as they come due, or to obtain adequate funding at a reasonable cost to meet those obligations. Liquidity risk also considers the stability of deposits. The objective of liquidity management is to manage the potential mismatch of asset and liability cash flows. Maintaining an adequate level of liquidity depends on the institution’s ability to efficiently meet both expected and unexpected cash flow and collateral needs without adversely affecting daily operations or the financial condition of the institution. To achieve this objective, the Company analyzes its liquidity risk, maintains readily available liquid assets, and utilizes diverse funding sources including its stable core deposit base.

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The ROC has primary oversight responsibility over liquidity risk management. At the management level, the Company’s Asset/Liability Committee (“ALCO”) establishes the liquidity guidelines that govern the day-to-day active management of the Company’s liquidity position by requiring sufficient asset-based liquidity to cover potential funding requirements and avoid over-dependence on volatile, less reliable funding markets. These guidelines are established and monitored for both the Bank and East West on a stand-alone basis to ensure that East West can serve as a source of strength for its subsidiaries. The ALCO regularly monitors the Company’s liquidity status and related management processes, and provides regular reports on the Company’s liquidity position relative to policy limits and guidelines to the Board of Directors. The Company believes its liquidity management practices have been effective under normal operating and stressed market conditions.

The Company also maintains a Contingency Funding Plan that utilizes early-warning indicators that are monitored to provide timely detection of adverse liquidity situations and enable management to promptly respond. The Contingency Funding Plan describes the procedures, roles and responsibilities, and communication protocols for managing any identified emerging liquidity problem. Management monitors the early-warning indicators defined in the Contingency Funding Plan, which include metrics for measuring the Company’s internal liquidity status as well as company-specific and market-wide external factors. When early warning indicators are triggered, management will evaluate the severity of the emerging liquidity problem and exercise appropriate management actions to address any liquidity and funding shortfalls.

Liquidity Sources — Deposits. The Company’s primary source of funding is from deposits, generated by its banking business, which we believe is a relatively stable and low-cost source of funding. Our loans are funded by deposits, which amounted to $65.0 billion as of June 30, 2025, compared with $63.2 billion as of December 31, 2024. The Company’s loan-to-deposit ratio was 85% as of both June 30, 2025 and December 31, 2024. See Item 2. — MD&A — Balance Sheet Analysis — Deposits in this Form 10-Q for further details related to the Company’s deposits.

Other Liquidity Sources. In addition to deposits, the Company has access to various sources of wholesale financing, including borrowing capacity with the FHLB and Federal Reserve Bank (“FRB”), and several master repurchase agreements with major brokerage companies to sustain an adequate liquid asset portfolio, meet daily cash demands and allow management flexibility to execute its business strategy. However, general financial market and economic conditions could impact our access and cost of external funding. Additionally, the Company’s access to capital markets is affected by the ratings received from various credit rating agencies.

Sources of funding included $3.5 billion of FHLB advances as of both June 30, 2025 and December 31, 2024. FHLB advances as of June 30, 2025 had fixed and floating interest rates ranging from 3.87% to 4.64% with remaining maturities between two months and 1.5 years. The Company also held long-term debt of $32 million in the form of junior subordinated debt as of both June 30, 2025 and December 31, 2024, which qualifies as Tier 2 capital for regulatory capital purposes. Refer to Note 9 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in this Form 10-Q for additional information on the junior subordinated debt.

Unencumbered loans and/or debt securities are pledged to the FHLB and the FRB discount window as collateral. The Company has established operational procedures to enable borrowing against these assets, including regular monitoring of the total pool of loans and debt securities eligible as collateral. Eligibility of collateral is defined in guidelines from the FHLB and FRB and is subject to change at their discretion. The Company operated below its established risk limits for liquidity measures as of June 30, 2025. Accordingly, the Company believes the cash and cash equivalents, and available collateralized borrowing capacity described below provide sufficient liquidity above its expected cash needs.

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The Company maintains its liquidity in the form of cash and cash equivalents and borrowing capacity with eligible loans and debt securities pledged as collateral. The following table presents the Company’s total available liquidity as of June 30, 2025 and December 31, 2024:

Change
($ in thousands) June 30, 2025 December 31, 2024 $ %
Cash and cash equivalents $ 4,409,941  $ 5,250,742  $ (840,801) (16) %
Interest-bearing deposits with banks 104,535  48,198  56,337  117  %
Unused secured borrowing capacity from:

FHLB 10,493,425  9,928,152  565,273  6  %
FRB (1)
13,068,514  12,383,005  685,509  6  %
Unpledged securities
9,516,274  7,819,531  1,696,743  22  %
Total available liquidity
$ 37,592,689   $ 35,429,628   $ 2,163,061   6   %

(1) The Company had no outstanding borrowings with the FRB as of June 30, 2025 and December 31, 2024.

The Company’s total available liquidity increased to $37.6 billion as of June 30, 2025, compared with $35.4 billion as of December 31, 2024. The increase in borrowing capacity was primarily due to an increase in securities available to be pledged and loans pledged.

Cash Requirements. In the ordinary course of business, the Company enters into contractual obligations that require future cash payments, including funding for customer deposit withdrawals, repayments for short- and long-term borrowings, and other cash commitments. For additional information on these obligations, see Note 9 — Deposits to the Consolidated Financial Statements in the Company’s 2024 Form 10-K, and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net and Note 9 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in this Form 10-Q.

The Company also has off-balance sheet arrangements which represent transactions that are not recorded on the Consolidated Balance Sheet. The Company’s off-balance sheet arrangements include (1) commitments to extend credit, such as loan commitments, commercial letters of credit for foreign and domestic trade, standby letters of credit (“SBLCs”), and financial guarantees, to meet the financing needs of its customers, (2) future interest obligations related to customer deposits and the Company’s borrowings, and (3) transactions with unconsolidated entities that provide financing, liquidity, market risk or credit risk support to the Company, or engage in leasing, hedging or research and development services with the Company. A portion of these commitments are expected to expire unused or only partially used, therefore the total commitment amounts do not necessarily represent future cash requirements. The Company does not expect the total commitment amounts as of June 30, 2025 to have a material current or future impact on the Company’s financial conditions or results of operations. Additional information about the Company’s loan commitments, commercial letters of credit and SBLCs is provided in Note 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q.

The Consolidated Statement of Cash Flows summarizes the Company’s sources and uses of cash by type of activity for the first halves of 2025 and 2024. Excess cash generated by operating and investing activities may be used to repay outstanding debt or invest in liquid assets.

Liquidity for East West. In addition to bank level liquidity management, the Company manages liquidity at the parent company level for various operating needs including payment of dividends, repurchases of common stock, principal and interest payments on its borrowings, acquisitions and additional investments in its subsidiaries. East West’s primary source of liquidity is from cash dividends distributed by its subsidiary, East West Bank. The Bank is subject to various statutory and regulatory restrictions on its ability to pay dividends as discussed in Item 1 . Business — Supervision and Regulation — Dividends and Other Transfers of Funds in the Company’s 2024 Form 10-K. East West held $427 million and $395 million in on-hand liquidity as of June 30, 2025 and December 31, 2024, respectively. On-hand liquidity generally comprises cash and cash equivalents due from banks, and short-term AFS securities that mature within 30 days. Management believes that East West has sufficient liquidity to meet the projected cash obligations for the coming year.

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Liquidity Stress Testing. The Company utilizes liquidity stress analysis to determine the appropriate amounts of liquidity to maintain at the Company, foreign subsidiary and foreign branch to meet contractual and contingent cash outflows under a range of scenarios. Scenario analyses include assumptions about significant changes in key funding sources, market triggers, potential uses of funding and economic conditions in certain countries. In addition, Company specific events are incorporated into the stress testing. Liquidity stress tests are conducted to ascertain potential mismatches between liquidity sources and uses over various time horizons and under a variety of stressed conditions. Given the range of potential stresses, the Company maintains contingency funding plans on a consolidated basis and for individual entities.

As of June 30, 2025, the Company believes it has adequate liquidity resources to conduct operations and meet other needs in the ordinary course of business, and is not aware of any events that are reasonably likely to have a material adverse effect on its liquidity, capital resources or operations. Given the changing market and economic conditions, the Company will continue to actively evaluate the impact on its business and financial position. For more details on how economic conditions may impact our liquidity, see Item 1A . Risk Factors in the Company’s 2024 Form 10-K.

Market Risk Management

Market risk refers to the risk of potential loss due to adverse movements in market risk factors, including interest rates, foreign exchange rates, commodity prices, and credit spreads. The Company is primarily exposed to interest rate risk through its core business activities of extending loans and acquiring deposits. There have been no significant changes in our risk management practices as described in Item 7 . MD&A — Market Risk Management in the Company’s 2024 Form 10-K.

Interest Rate Risk Management

Interest rate risk is the risk that market fluctuations in interest rates can have a negative impact on the Company’s earnings and capital stemming from mismatches in the Company’s asset and liability cash flows primarily arising from customer-related activities such as lending and deposit-taking. The Company is subject to interest rate risk because:

• Assets and liabilities may mature or reprice at different times. If assets reprice faster than liabilities and interest rates are generally rising, earnings will initially increase;
• Assets and liabilities may reprice at the same time but by different amounts;
• Short- and long-term market interest rates may change by different amounts. For example, the shape of the yield curve may affect the yield of new loans and funding costs differently;
• The remaining maturity of various assets or liabilities may shorten or lengthen as interest rates change. For example, if long-term mortgage interest rates increase sharply, mortgage-related products may pay down at a slower rate than anticipated, which could impact portfolio income and valuation; or
• Interest rates may have a direct or indirect effect on loan demand, collateral values, mortgage origination volume, and the fair value of other financial instruments.

The ALCO coordinates the overall management of the Company’s interest rate risk, meets regularly to review the Company’s open market positions and establishes policies to monitor and limit exposure to market risk. Interest rate risk management is carried out primarily through strategies involving the Company’s loan portfolio, debt securities portfolio, available funding channels and capital market activities. In addition, the Company’s policies permit the use of derivative instruments to assist in managing interest rate risk.

The Company measures and monitors interest rate risk exposure through various risk management tools, which include a simulation model that performs monthly interest rate sensitivity analyses under multiple interest rate scenarios against a baseline. The simulation model incorporates the market’s forward rate expectations and the Company’s earning assets and liabilities. The Company uses a dynamic balance sheet, incorporating expected forward growth and/or deposit product mix shift to perform the interest rate sensitivity analyses. The simulated interest rate scenarios include an instantaneous parallel shift in the yield curve and a gradual parallel shift in the yield curve (“linear rate ramp”). In addition, the Company also performs simulations using other alternative interest rate scenarios, including various permutations of the yield curve flattening, steepening or inverting. The Company uses the results of these simulations to formulate and gauge strategies to achieve a desired risk profile within its capital and liquidity guidelines.
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The Company’s net interest income volatility simulations are based on a dynamic balance sheet approach and market forward rates to better reflect the interest rate risk on the Company’s financial statements. The Company’s simulation scenarios use parallel shocks for both instantaneous and gradual net interest income simulations, as well as economic value of equity (“EVE”) simulations. These simulations conform with industry-standard scenario definitions and enhance interpretability and comparability.

The net interest income simulation model is based on the maturity and repricing characteristics of the Company’s interest rate sensitive assets, liabilities, and related derivative contracts. This model also incorporates various assumptions, which management believes to be reasonable but may have a significant impact on the results. These key assumptions include the timing and magnitude of changes in interest rates, the yield curve evolution and shape, the correlation between various interest rate indices, financial instruments’ future repricing characteristics and spread relative to benchmark rates, and the effect of interest rate floors and caps. The modeled results are highly sensitive to deposit mix and deposit beta assumptions, which are derived from a regression analysis of the Company’s historical deposit data.

Simulation results are highly dependent on modeled behaviors and input assumptions. To the extent that actual behaviors are different from the assumptions used in the models, there could be material changes to the interest rate sensitivity results. The key behavioral models impacting interest rate sensitivity simulations include deposit repricing, deposit balance forecasts, and mortgage prepayments. These models and assumptions are documented, supported, and periodically back-tested to assess the reasonableness and effectiveness. The Company also regularly monitors the sensitivity of the other important modeling assumptions, such as loan and security prepayments and early withdrawal on fixed-rate customer liabilities. The Company makes appropriate calibrations to the model as needed and continually validates the model, methodology and results. Changes to key model assumptions are reviewed by the Technical ALCO, a subcommittee of ALCO. Scenario results do not reflect strategies that the management could employ to limit the impact of changing interest rate expectations. The simulation does not represent a forecast of the Company’s net interest income but is a tool utilized to assess the risk of the impact of changing market interest rates across a range of interest rate environments.

The Company employs a variety of quantitative and qualitative approaches to capture historical deposit repricing and balance behaviors. These historical observations are performed at a granular level based on key product characteristics, including distinctions for brokered, public, and large commercial deposits, which are then combined with forward-looking market expectations and the competitive landscape to generate the deposit repricing and balance forecasting models. The Company uses these deposit repricing models to forecast deposit interest expense. The repricing models provide sufficient granularity to reflect key behavioral differences across product and customer types. The deposit beta, which defines the sensitivity of deposit rates to changes in the effective federal funds rate, is a key parameter of the deposit rate forecast. For the six months ended June 30, 2025, the Company assumed a weighted-average beta of 56%, an increase of approximately 1% from December 31, 2024. The increase was primarily due to deposit product mix changes.

As loan and debt security prepayment assumptions are key components of the Company’s model, the Company incorporates third-party vendor models to forecast prepayment behavior on mortgage loans and securities, which have mortgage loans as underlying collateral. These third-party vendor models have access to more comprehensive industry-level data that captures specific borrower and collateral characteristics over a variety of interest rate cycles. The Company will periodically assess and adjust the vendor models when appropriate to include its own available observations and expectations.

Twelve-Month Net Interest Income Simulation

Net interest income simulation modeling measures interest rate risk through earnings volatility. The simulation projects the cash flow changes in interest rate sensitive assets and liabilities, expressed in terms of net interest income, over a specified time horizon for defined interest rate scenarios. Net interest income simulations provide insight into the impact of market rate changes on earnings, which help guide risk management decisions. The Company assesses interest rate risk by comparing the changes of net interest income in different interest rate scenarios.

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The following table presents the Company’s net interest income sensitivity related to an instantaneous and sustained parallel shift in market interest rates by 100 and 200 bps as of June 30, 2025 and December 31, 2024, on a balance sheet assuming market implied forward rates and a dynamic balance sheet with forecasted loan and deposit growth on the date of analysis.

Net Interest Income Volatility (1)

Change in Interest Rates (in bps) June 30, 2025 December 31, 2024
+200 5.3  % 4.7  %
+100 3.6  % 3.5  %
-100 (4.0) % (4.0) %
-200 (7.0) % (7.4) %

(1) The percentage change represents net interest income change over a 12-month period under market implied forward rates and expected balance sheet growth as of the analysis date versus various interest rate scenarios.

The composition of the Company’s loan portfolio creates sensitivity to interest rate movements due to a mismatch of repricing behavior between the floating-rate loan portfolio and deposit products. In the table above, the net interest income volatility expressed in relation to base-case net interest income increased slightly under rising rate scenarios and decreased modestly under falling rate scenarios as of June 30, 2025. These changes reflect deposit product mix assumptions, which assume noninterest-bearing deposits decrease in higher interest rate environments and are replaced with term deposit products.

The Company also models scenarios based on gradual shifts in interest rates and assesses the corresponding impacts. These interest rate scenarios provide additional information to estimate the Company’s underlying interest rate risk. The rate ramp table below shows the net interest income volatility under a gradual parallel shift of the market implied forward rates, in even monthly increments over the first 12 months, with the full shift passed through to the forward rates thereafter. The results are based on a dynamic balance sheet with expected loan and deposit growth as of the date of the analysis.

Net Interest Income Volatility
Change in Interest Rates (in bps) June 30, 2025 December 31, 2024
+200 Rate ramp 3.8  % 4.3  %
+100 Rate ramp 1.9  % 2.3  %
-100 Rate ramp (1.9) % (2.4) %
-200 Rate ramp (3.5) % (4.6) %

As of June 30, 2025, the Company’s net interest income profile reflects an asset sensitive position, where assets reprice faster or more significantly than liabilities. Net interest income is expected to increase when interest rates rise as the Company has a large population of variable rate loans, primarily tied to Prime and Term Secured Overnight Financing Rate (“ SOFR”) indices. The Company’s interest income is sensitive to changes in short-term interest rates. As of June 30, 2025 , the Company designated interest rate contracts with a notional amount of $4.3 billion as cash flow hedges, which reduced net interest income volatility by approximately 1.47% of the base net interest income for every 100 bp change in interest rate .

A portion of the Company’s interest-bearing deposit portfolio is composed of non-maturity deposits, which are not directly tied to short-term interest rate indices, but are, nevertheless, sensitive to changes in short-term interest rates. The modeled results are highly sensitive to modeled behavior and assumptions. Actual net interest income results may deviate from the model’s net interest income due to earning asset growth variation and deposit mix changes based on customer preferences relative to the interest rate environment. During a period of declining interest rates, balance sheet growth could offset headwinds to net interest income from yield compression.

Economic Value of Equity at Risk

EVE is a cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. This calculation is used for asset/liability management and measures changes in the present value of the bank’s assets and liabilities due to changes in interest rates.

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The economic value approach provides a comparatively broader scope than the net interest income volatility approach since it represents the discounted present value of cash flows over the expected life of the instruments. Due to this longer horizon, EVE is useful to identify risks arising from repricing, prepayment and maturity gaps between assets and liabilities on the balance sheet, as well as from off-balance sheet derivative exposures, over their lifetime. This long-term economic perspective into the Company’s interest rate risk profile allows the Company to identify anticipated negative effects of interest rate fluctuations. However, the difference in time horizons can cause the EVE analysis to diverge from the shorter-term net interest income analysis presented above. Given the uncertainty of the magnitude, timing and direction of future interest rate movements, the shape of the yield curve, and potential changes to the balance sheet, actual results may vary from those predicted by the Company’s model.

The following table presents the Company’s EVE sensitivity related to an instantaneous parallel shift in market interest rates by 100 and 200 bps as of June 30, 2025 and December 31, 2024.

Economic Value of Equity Volatility (1)

Change in Interest Rates (in bps) June 30, 2025 December 31, 2024
+200 (13.4) % (12.5) %
+100 (6.2) % (5.2) %
-100 4.9  % 4.6  %
-200 9.5  % 9.5  %

(1) The percentage change represents net present value change of the balance sheet as of the analysis date versus various interest rate scenarios.

As of June 30, 2025, the Company’s EVE is expected to decrease when interest rates rise. The EVE sensitivity represents a duration mismatch between fixed-rate assets versus fixed-rate liabilities where more fixed-rate assets are expected to produce more stable net interest income in the short term but may lead to decreases in net present value of future cash flows.

Derivatives

It is the Company’s policy not to speculate on the future direction of interest rates, foreign currency exchange rates and commodity prices. However, the Company periodically enters into derivative transactions in order to manage its exposure to market risk, primarily interest rate risk and foreign currency risk. The Company believes these derivative transactions, when properly structured and managed, provide a hedge against inherent risk in certain assets and liabilities or against risk in specific transactions. Hedging transactions may be implemented using a variety of derivative instruments such as swaps, forwards, options, and collars. The Company uses interest rate contracts to hedge the variability in interest received on certain floating-rate commercial loans. Foreign exchange derivatives are used in net investment hedging strategies to mitigate the risk of changes in the U.S. dollar equivalent value of a designated monetary amount of the Company’s net investment in East West Bank (China) Limited. Prior to entering any hedge accounting activity, the Company analyzes the costs and benefits of the hedge in comparison to alternative strategies. The Company also repositions its hedging derivatives portfolio based on the current assessment of economic and financial conditions, including the interest rate and foreign currency environments, balance sheet composition and trends, and the relative mix of its cash and derivative positions.

In addition, the Company enters into derivative transactions in order to accommodate its customers with their business needs or to assist customers with their risk management objectives, such as managing exposure to fluctuations in interest rates, foreign currencies and commodity prices. To economically hedge against the derivative contracts entered into with the Company’s customers, the Company enters into offsetting derivative contracts with third-party financial institutions, some of which are cleared through central clearing organizations. The exposures from derivative transactions are collateralized by cash and/or eligible securities based on limits as set forth in the respective agreements between the Company and counterparty financial institutions. The fair value changes of the derivative contracts traded with third-party financial institutions are expected to be largely comparable to the fair value changes of the derivative transactions executed with customers throughout the terms of these contracts, except for the credit valuation adjustment component of the contracts and the spread variances between the customer derivatives and the offsetting financial counterparty positions. The Company also utilizes foreign exchange contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in certain foreign currency on-balance sheet assets and liabilities and to meet funding needs in certain foreign currencies.
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The Company is subject to credit risk associated with the counterparties to the derivative contracts. This counterparty credit risk is a multi-dimensional form of risk, affected by both the exposure and credit quality of the counterparty, both of which are sensitive to market-induced changes. The Company’s Credit Risk Management Committee provides oversight of credit risk, and the Company has guidelines in place to manage counterparty concentration, tenor limits, and collateral. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, by entering into legally enforceable master netting agreements, and by requiring collateral arrangements, where possible. The Company may also transfer counterparty credit risk related to interest rate swaps to third-party financial institutions through the use of credit risk participation agreements. Certain derivative contracts are required to be cleared through central clearing organizations to further mitigate counterparty credit risk, where variation margin is applied daily as settlement to the fair value of the derivative contracts. In addition, the Company incorporates credit valuation adjustments and other market standard methodologies to appropriately reflect the counterparty’s and the Company’s own nonperformance risk in the fair value measurement of its derivatives. As of June 30, 2025, the Company anticipates performance by all of its counterparties and has not incurred any related credit losses.

The following tables summarize certain information on derivative instruments designated as accounting hedges and utilized by the Company in its management of interest rate risk as of June 30, 2025 and December 31, 2024:

June 30, 2025
Weighted Average

($ in thousands) Notional Amount
Fair Value Assets
Fair Value Liabilities
Fixed Rate
Floating Rate
(1) Remaining Term (In months)

Cash flow hedges
Derivative Contracts Hedging Loans:
Interest rate swaps - Receive fixed pay floating $ 3,000,000  $ 15,975  $ 3,131  6.24  % 6.97  % 25.6
Interest rate swaps - Receive fixed pay floating - Forward starting
1,000,000  25,235  —  3.90  % N/A (2) 61.8
Interest rate collars - Buy floor sell cap 250,000  10  —  Cap: 4.58%
Floor: 1.50% 4.32  % 11.0
Total cash flow hedges
$ 4,250,000   $ 41,220   $ 3,131  

December 31, 2024
Weighted Average

($ in thousands) Notional Amount
Fair Value Assets
Fair Value Liabilities
Fixed Rate
Floating Rate
(1) Remaining Term (In months)

Cash flow hedges
Derivative Contracts Hedging Loans:
Interest rate swaps - Receive fixed pay floating $ 4,000,000  $ 1,808  $ 29,102  4.95  % 6.47  % 23.8
Interest rate swaps - Receive fixed pay floating - Forward starting
1,000,000  3,839  5,893  3.90  % N/A (2) 67.8
Interest rate collars - Buy floor sell cap 250,000  —  216  Cap: 4.58%
Floor: 1.50% 4.55  % 17.0

Total cash flow hedges
$ 5,250,000   $ 5,647   $ 35,211  

(1) Floating rates are indexed to SOFR or Prime.
(2) Forward starting swaps are effective starting from July 2025 through October 2025.

Additional information on the Company’s derivatives is presented in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements in the Company’s 2024 Form 10-K, Note 2 — Fair Value Measurement and Fair Value of Financial Instruments, and Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q.

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Critical Accounting Policies and Estimates

The Company’s significant accounting policies are described in Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2024 Form 10-K. Certain of these policies include critical accounting estimates, which are subject to valuation assumptions, subjective or complex judgments about matters that are inherently uncertain, and it is likely that materially different amounts could be reported under different assumptions and conditions. The Company has procedures and processes in place to facilitate making these judgments. The following accounting policies are critical to the Company’s Consolidated Financial Statements:
• allowance for credit losses;
• fair value estimates;
• goodwill impairment; and
• income taxes.
For additional information on the Company’s critical accounting estimates involving significant judgments, see Item 7. MD&A — Critical Accounting Estimates in the Company’s 2024 Form 10-K.

Reconciliation of GAAP to Non-GAAP Financial Measures

To supplement the Company’s unaudited interim Consolidated Financial Statements presented in accordance with U.S. GAAP, the Company uses certain non-GAAP measures of financial performance. Non-GAAP financial measures are not prepared in accordance with, or as an alternative to U.S. GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts, or is subject to adjustments that have such an effect, that are not normally excluded or included in the most directly comparable financial measure that is calculated and presented in accordance with U.S. GAAP. The non-GAAP financial measures discussed in this Form 10-Q are ROATCE and tangible book value per share. Certain additional non-GAAP financial measures that are components of the foregoing non-GAAP financial measures are also set forth and reconciled in the table below. The Company believes these non-GAAP financial measures, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding its performance, and allow comparability to prior periods. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes.

The following tables present the reconciliations of U.S. GAAP to non-GAAP financial measures for the periods presented:

Three Months Ended June 30, Six Months Ended June 30,
($ in thousands) 2025 2024 2025 2024
Net income (a) $ 310,253  $ 288,230  $ 600,523  $ 573,305 

Add: Amortization of mortgage servicing assets
316  332  609  640 
Tax effect of amortization adjustment (1)
(89) (98) (172) (189)
Tangible net income (non-GAAP) (b) $ 310,480   $ 288,464   $ 600,960   $ 573,756  

Average stockholders’ equity (c)
$ 8,069,982  $ 7,087,500  $ 7,970,083  $ 7,040,029 
Less: Average goodwill (465,697) (465,697) (465,697) (465,697)
Average mortgage servicing assets
(4,825) (6,110) (4,971) (6,292)
Average tangible book value (non-GAAP) (d) $ 7,599,460   $ 6,615,693   $ 7,499,415   $ 6,568,040  

ROAE (2)
(a)/(c) 15.42 % 16.36 % 15.19 % 16.38 %
ROATCE (2) (non-GAAP)
(b)/(d) 16.39 % 17.54 % 16.16 % 17.57 %

(1) Applied statutory tax rate of 28.18% for the three and six months ended June 30, 2025, and 29.56% for the three and six months ended June 30, 2024.
(2) Annualized.
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($ and shares in thousands, except per share data) June 30, 2025 December 31, 2024
Stockholders’ equity (a) $ 8,201,767  $ 7,723,054 
Less: Goodwill (465,697) (465,697)
Mortgage servicing assets
(4,628) (5,234)
Tangible book value (non-GAAP) (b) $ 7,731,442   $ 7,252,123  

Number of common shares at period-end (c) 137,816   138,437  
Book value per share (a)/(c) $ 59.51   $ 55.79  
Tangible book value per share (non-GAAP) (b)/(c) $ 56.10   $ 52.39  

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For quantitative and qualitative disclosures regarding market risk in the Company’s portfolio, see Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q and Item 2. MD&A — Risk Management — Market Risk Management in this Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of June 30, 2025, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company conducted an evaluation, under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of June 30, 2025.

The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC. The Company’s disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that the Company files under the Exchange Act is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Change in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) during the quarter ended June 30, 2025, that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

See Note 10 — Commitments and Contingencies — Litigation to the Consolidated Financial Statements in Part I of this Form 10-Q, incorporated herein by reference.

ITEM 1A. RISK FACTORS

The Company’s 2024 Form 10-K contains disclosure regarding the risks and uncertainties related to the Company’s business under the heading Item 1A. Risk Factors . There have been no material changes to the Company’s risk factors as presented in the Company’s 2024 Form 10-K.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table summarizes the Company’s common stock repurchase activity during the second quarter of 2025:

Calendar Month Total Number of Shares Purchased (1)
Average Price Paid
per Share of
Common Stock (2)
Total Number of Shares Purchased as Part of Publicly Announced
Plans or Programs
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (2) (3)

April —  $ —  —  $ 244 
May 25,087  $ 89.62  25,087  $ 242 
June 900  $ 89.82  900  $ 241 
Second quarter
25,987   $ 89.63   25,987  

(1) Excludes the repurchase of common stock pursuant to various stock compensation plans and agreements.
(2) Excludes excise taxes and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax was imposed on net share repurchases effective January 1, 2023.
(3) On January 22, 2025, the Company’s Board of Directors authorized the additional repurchase of $300 million of its common stock, which will remain valid until December 31, 2026.

ITEM 5. OTHER INFORMATION
 
During the three months ended June 30, 2025, none of the Company’s directors or Section 16 reporting officers adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of the SEC’s Regulation S-K).

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ITEM 6. EXHIBITS

The following exhibit index lists Exhibits filed, or in the case of Exhibits 32.1 and 32.2 furnished, with this report:

Exhibit No. Exhibit Description

3.1 Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit 3(i) from Registrant’s Registration Statement on Form S-4 filed with the Commission on September 17, 1998 (File No. 333-63605).]

3.1.1 Certificate of Amendment to Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit 3(i).1 from Registrant’s Annual Report on Form 10-K for the year ended December 31, 2002 filed with the Commission on March 28, 2003 (File No. 000-24939).]

3.1.2 Amendment to Certificate of Incorporation to Increase Authorized Shares of the Registrant [Incorporated by reference from Registrant’s Definitive Proxy Statement on Schedule 14A filed with the Commission on April 15, 2005 (File No. 000-24939).]

3.1.3 Certificate of Amendment to Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit A from Registrant’s Definitive Proxy Statement on Schedule 14A filed with the Commission on April 23, 2008 (File No. 000-24939).]

3.1.4 Certificate of Designations of 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, Series A of the Registrant [Incorporated by reference to Exhibit 3.1 from Registrant’s Current Report on Form 8-K, filed with the Commission on April 30, 2008 (File No. 000-24939).]

3.1.5 Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series B of the Registrant [Incorporated by reference to Exhibit 3.1, 4.1 from Registrant’s Current Report on Form 8-K filed with the Commission on December 9, 2008 (File No. 000-24939).]

3.1.6 Certificate of Designations of Mandatorily Convertible Cumulative Non-Voting Perpetual Preferred Stock, Series C of the Registrant [Incorporated by reference to Exhibit 3.1, 4.1 from Registrant’s Current Report on Form 8-K filed with the Commission on November 12, 2009 (File No. 000-24939).]

3.2 Amended and Restated Bylaws of the Registrant dated March 14, 2023 [Incorporated by reference to Exhibit 3.1 from Registrant’s Current Report on Form 8-K filed with the Commission on Ma rch 1 7, 202 3 (File No. 000-24939).]

31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

101.INS The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

101.SCH Inline XBRL Taxonomy Extension Schema Document. Filed herewith.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document. Filed herewith.

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document. Filed herewith.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document. Filed herewith.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document. Filed herewith.

104 Cover Page Interactive Data (formatted as Inline XBRL and contained in Exhibit 101 filed herewith). Filed herewith.

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GLOSSARY OF ACRONYMS

AFS Available-for-sale HELOC Home equity lines of credit
ALCO Asset/Liability Committee HTM Held-to-maturity
AOCI Accumulated other comprehensive (loss) income IAR Independent Asset Review
ASC Accounting Standards Codification IDI Insured deposit institution
ASU Accounting Standards Update LCH London Clearing House
BTFP Bank Term Funding Program LGD Loss given default
C&I Commercial and industrial LTV Loan-to-value
CARB California Air Resources Board MBS Mortgage-backed securities
CECL Current expected credit Losses MD&A Management’s Discussion and Analysis of Financial Condition and Results of Operations
CET1 Common Equity Tier 1 MMBTU Million British thermal unit
CFPB Consumer Financial Protection Bureau NAV Net asset value
CLO Collateralized loan obligation NRSRO Nationally recognized statistical rating organizations
CME Chicago Mercantile Exchange OBBBA The One Big Beautiful Bill Act

CODM Chief operating decision maker OREO Other real estate owned
CRA Community Reinvestment Act PAM Proportional amortization method
CRE Commercial real estate PD Probability of default
EPS Earnings per share RMB Chinese Renminbi
ERM Enterprise risk management ROAE Return on average common equity
EVE Economic value of equity ROATCE Return on average tangible common equity
FDIC Federal Deposit Insurance Corporation ROC Risk Oversight Committee
FHLB Federal Home Loan Bank RPA Credit risk participation agreement
FRB Federal Reserve Bank RSU Restricted stock unit
FTP Funds transfer pricing SBLC Standby letter of credit
GAAP Generally accepted accounting principles SEC U.S. Securities and Exchange Commission
GDP Gross Domestic Product SOFR Secured Overnight Financing Rate
GHG Greenhouse gas U.S. United States
GNMA Government National Mortgage Association USD U.S. dollar
GSE Government-sponsored entities

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: August 7, 2025

EAST WEST BANCORP, INC.
(Registrant)

By /s/ Christopher J. Del Moral-Niles
Christopher J. Del Moral-Niles
Executive Vice President and
Chief Financial Officer

111