10-Q – 2025-11-07 – ewbc-20250930.htm

When a quoted price in an active market exists for the identical security, this price is used to determine the fair value and the AFS debt security is classified as Level 1. Level 1 AFS debt securities consist of U.S. Treasury securities. When pricing is unavailable from third-party pricing service providers for certain securities, the Company requests market quotes from various independent external brokers and utilizes the average quoted market prices. In addition, the Company obtains market quotes from other official published sources. As these valuations are based on observable inputs in the current marketplace, they are classified as Level 2.

Equity Securities — Equity securities consist of mutual funds and exchange-traded equity securities. The Company invests in these mutual funds for CRA purposes. The Company uses net asset value (“NAV”) information to determine the fair value of these equity securities. When NAV is available periodically and the equity securities can be redeemed at the publicly available NAV, the fair value of the equity securities is classified as Level 1. When NAV is available periodically, but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is classified as Level 2. Exchange-traded equity securities are measured based on quoted prices on an active exchange market and classified as Level 1.

Interest Rate Contracts — Interest rate contracts consist of interest rate swaps and options. The fair value of the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The fair value of the interest rate options, which consist of floors and caps, is determined using the market standard methodology of discounting the future expected cash receipts that will occur if variable interest rates fall below (rise above) the strike rate of the floors (caps). In addition, to comply with the provisions of ASC 820, Fair Value Measurement , the Company incorporates credit valuation adjustments to appropriately reflect both its own and the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. The credit valuation adjustments associated with the Company’s derivatives utilize model-derived credit spreads, which are Level 3 inputs. Considering the observable nature of all other significant inputs utilized, the Company classifies these derivative instruments as Level 2.

Foreign Exchange Contracts — The fair value of foreign exchange contracts is determined at each reporting period based on changes in the applicable foreign exchange rates. These are over-the-counter contracts where quoted market prices are not readily available. Valuation is measured using conventional valuation methodologies with observable market data. Due to the short-term nature of the majority of these contracts, the counterparties’ credit risks are considered nominal and result in no adjustments to the valuation of the foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign exchange contracts is classified as Level 2. In addition, the Bank managed its foreign currency exposure in the net investment in its China subsidiary, East West Bank (China) Limited, a non-U.S. dollar (“USD”) functional currency subsidiary, with foreign currency non-deliverable forward contracts. These foreign currency non-deliverable forward contracts were designated as net investment hedges. The fair value of foreign currency non-deliverable forward contracts is determined by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include the spot and forward rates of the contractual currencies. Foreign exchange forward curves are used to determine which forward rate pertains to a specific maturity. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2.

Credit Contracts — Credit contracts utilized by the Company are comprised of credit risk participation agreements (“RPAs”) between the Company and institutional counterparties. The fair value of the RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Due to the observable nature of all other significant inputs used in deriving the estimated fair value, credit contracts are classified as Level 2.

12

Equity Contracts — Equity contracts consist of warrants to purchase private company common or preferred stock, and any liability-classified contingently issuable shares of the Company. The fair value of the warrants is based on the Black-Scholes option pricing model. The model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S. Treasury rate and equity volatility. The Company applies proxy volatilities based on the industry sectors of the private companies. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Since both equity volatility and liquidity discount assumptions are subject to management’s judgment, measurement uncertainty is inherent in the valuation of private company warrants. Due to the unobservable nature of the equity volatility and liquidity discount assumptions used in deriving the estimated fair value, warrants from private companies are classified as Level 3. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the equity volatility and liquidity discount assumptions is performed.

In connection with the Company’s acquisition of a 49.99 % equity interest in an investee during the third quarter of 2023, the Company granted 349 thousand performance-based restricted stock units (“RSUs”) as part of its consideration, in addition to $ 95  million in cash. The vesting of these equity contracts on September 1, 2028, is contingent on the investee meeting certain financial performance targets during the performance period. The fair value of liability-classified equity contracts varies based on the operating revenue and operating EBITDA of the investee to be achieved during the future performance period. These performance-based RSUs are expected to vest into a variable number of the Company’s common stock, ranging from 20 % to 200 % of the target performance-based RSUs granted. Due to the unobservable nature of the input assumptions, these equity contracts are classified as Level 3. For additional information on the equity contracts, refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q.

Commodity Contracts — Commodity contracts consist of swaps and options referencing commodity products. The fair value of the commodity option contracts is determined using the Black-Scholes model and assumptions that include expectations of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as the market price of the commodity. Commodity swaps are structured as an exchange of fixed cash flows for floating cash flows. The fair value of the commodity swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) based on the market prices of the commodity. The fixed cash flows are predetermined based on the known volumes and fixed price as specified in the swap agreement. The floating cash flows are correlated with the change of forward commodity prices, which is derived from market corroborated futures settlement prices. As a result, the Company classifies these derivative instruments as Level 2 due to the observable nature of the significant inputs utilized.
13

The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:

Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of September 30, 2025
($ in thousands) Level 1 Level 2 Level 3 Total
Fair Value
AFS debt securities:
U.S. Treasury securities $ 856,215   $ —   $ —   $ 856,215  
U.S. government agency and U.S. government-sponsored enterprise debt securities —   256,386   —   256,386  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1) :

Commercial mortgage-backed securities —   328,431   —   328,431  
Residential mortgage-backed securities —   9,683,435   —   9,683,435  
Municipal securities —   245,182   —   245,182  
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities —   197,993   —   197,993  
Residential mortgage-backed securities —   403,678   —   403,678  
Corporate debt securities —   500,870   —   500,870  
Foreign government bonds —   237,019   —   237,019  
Asset-backed securities —   31,943   —   31,943  

Total AFS debt securities $ 856,215   $ 11,884,937   $ —   $ 12,741,152  

Affordable housing partnership, tax credit and CRA investments, net:
Equity securities $ 21,848   $ 4,303   $ —   $ 26,151  
Total affordable housing partnership, tax credit and CRA investments, net $ 21,848   $ 4,303   $ —   $ 26,151  

Other assets:

Equity securities
$ 613   $ —   $ —   $ 613  
Total other assets $ 613   $ —   $ —   $ 613  

Derivative assets:
Interest rate contracts $ —   $ 313,401   $ —   $ 313,401  
Foreign exchange contracts —   45,999   —   45,999  
Credit contracts —   17   —   17  
Equity contracts —   —   547   547  
Commodity contracts —   48,465   —   48,465  
Gross derivative assets $ —   $ 407,882   $ 547   $ 408,429  
Netting adjustments (2)
$ —   $ ( 272,519 ) $ —   $ ( 272,519 )
Net derivative assets $ —   $ 135,363   $ 547   $ 135,910  

Derivative liabilities:
Interest rate contracts $ —   $ 270,286   $ —   $ 270,286  
Foreign exchange contracts —   40,964   —   40,964  
Credit contracts —   58   —   58  
Equity contracts (3)
—   —   15,119   15,119  
Commodity contracts —   55,775   —   55,775  
Gross derivative liabilities $ —   $ 367,083   $ 15,119   $ 382,202  
Netting adjustments (2)
$ —   $ ( 107,154 ) $ —   $ ( 107,154 )
Net derivative liabilities $ —   $ 259,929   $ 15,119   $ 275,048  

Refer to table footnotes on the following page.

14

Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2024
($ in thousands) Level 1 Level 2 Level 3 Total
Fair Value
AFS debt securities:
U.S. Treasury securities $ 638,265   $ —   $ —   $ 638,265  
U.S. government agency and U.S. government-sponsored enterprise debt securities —   262,587   —   262,587  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1) :

Commercial mortgage-backed securities —   426,214   —   426,214  
Residential mortgage-backed securities —   7,738,260   —   7,738,260  
Municipal securities —   250,153   —   250,153  
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities —   258,470   —   258,470  
Residential mortgage-backed securities —   433,608   —   433,608  
Corporate debt securities —   526,166   —   526,166  
Foreign government bonds —   233,880   —   233,880  
Asset-backed securities —   34,715   —   34,715  
Collateralized loan obligation (“CLOs”)
—   44,493   —   44,493  
Total AFS debt securities $ 638,265   $ 10,208,546   $ —   $ 10,846,811  

Affordable housing partnership, tax credit and CRA investments, net:
Equity securities $ 20,817   $ 4,204   $ —   $ 25,021  
Total affordable housing partnership, tax credit and CRA investments, net
$ 20,817   $ 4,204   $ —   $ 25,021  
Other assets:

Equity securities
$ 568   $ —   $ —   $ 568  
Total other assets $ 568   $ —   $ —   $ 568  
Derivative assets:
Interest rate contracts $ —   $ 385,311   $ —   $ 385,311  
Foreign exchange contracts —   89,083   —   89,083  
Credit contracts —   1   —   1  
Equity contracts —   —   239   239  
Commodity contracts —   48,499   —   48,499  
Gross derivative assets $ —   $ 522,894   $ 239   $ 523,133  
Netting adjustments (2)
$ —   $ ( 427,292 ) $ —   $ ( 427,292 )
Net derivative assets $ —   $ 95,602   $ 239   $ 95,841  

Derivative liabilities:
Interest rate contracts $ —   $ 414,172   $ —   $ 414,172  
Foreign exchange contracts —   71,254   —   71,254  
Equity contracts (3)
—   —   15,119   15,119  
Credit contracts —   12   —   12  
Commodity contracts —   45,328   —   45,328  
Gross derivative liabilities $ —   $ 530,766   $ 15,119   $ 545,885  
Netting adjustments (2)
$ —   $ ( 112,284 ) $ —   $ ( 112,284 )
Net derivative liabilities $ —   $ 418,482   $ 15,119   $ 433,601  

(1) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $ 9.1  billion and $ 7.2 billion of fair value as of September 30, 2025 and December 31, 2024, respectively.
(2) Represents the balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
(3) Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.
15

For the three and nine months ended September 30, 2025 and 2024, Level 3 fair value measurements that were measured on a recurring basis consisted of warrant equity contracts issued by private companies and liability-classified contingently issuable shares of the Company granted as part of EWBC’s consideration in an investment. There was no change in the fair value of the liability classified contingently issuable shares during the three and nine months ended September 30, 2025 and 2024. The following table provides a reconciliation of the beginning and ending balances of the warrant equity contracts for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024

Equity contracts
Beginning balance $ 377   $ 240   $ 239   $ 336  

Total losses included in earnings (1)
( 13 ) ( 8 ) ( 131 ) ( 104 )

Issuances (2)
183   —   439   —  

Ending balance $ 547   $ 232   $ 547   $ 232  

(1) Includes unrealized losses recorded in Lending and loan servicing fees on the Consolidated Statement of Income.
(2) Included in Lending and loan servicing fees on the Consolidated Statement of Income.

The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of September 30, 2025 and December 31, 2024. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change.

($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Inputs Range of Inputs Weighted-Average of Inputs
September 30, 2025
Derivative assets:
Equity contracts $ 547   Black-Scholes option pricing model Equity volatility 34 % — 53 %
42 %   (1)

Liquidity discount 47 % 47 %
Derivative liabilities:
Equity contracts (2)
$ 15,119   Internal model Payout % based on operating revenue and operating EBITDA of investee
84 % 84 %
December 31, 2024
Derivative assets:
Equity contracts $ 239   Black-Scholes option pricing model Equity volatility 38 % — 57 %
50 %   (1)

Liquidity discount 47 % 47 %
Derivative liabilities:
Equity contracts (2)
$ 15,119   Internal model Payout % based on operating revenue and operating EBITDA of investee
84 % 84 %

(1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of September 30, 2025 and December 31, 2024.
(2) Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.

16

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis may include certain individually evaluated loans held-for-investment, loans held-for-sale, affordable housing partnership, tax credit and CRA investments, OREO, and other nonperforming assets. Nonrecurring fair value adjustments may result from the impairment on certain individually evaluated loans held-for-investment and affordable housing partnership, tax credit and CRA investments, from the write-downs of OREO and other nonperforming assets, or from the application of lower of cost or fair value on loans held-for-sale.

Individually Evaluated Loans Held-for-Investment — Individually evaluated loans held-for-investment are classified as Level 3 assets. The following two methods are used to derive the fair value of individually evaluated loans held-for-investment:

• Discounted cash flow valuation techniques consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate.
• When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations or is unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches.

Affordable Housing Partnership, Tax Credit and CRA Investments, Net — The Company conducts due diligence and secures applicable internal and external approval on its affordable housing partnership, tax credit and CRA investments prior to closing the investment and initial funding. After closing, the Company continues its periodic monitoring process to ensure that book values are realizable, the investments are performing as expected and there is no significant tax credit recapture risk. This monitoring process includes reviewing the investment entity’s financial statements, production reports and annual tax returns, the annual financial statements of the sponsor and guarantor (if any) and a comparison of the actual performance to plan based on the final financial model at the time of closing. The Company assesses its tax credit and other investments for possible other-than-temporary impairment on an annual basis or when events or circumstances suggest that the carrying amount of the investments may not be realizable. These circumstances can include, but are not limited to the following factors:

• expected future cash flows that are less than the carrying amoun t of the investment;
• changes in the economic, market or technological environment that could adversely affect the investee’s operations;
• the potential for tax credit recapture; and
• other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment.

All available information is considered in assessing whether a decline in value is other-than-temporary. Generally, none of the aforementioned factors are individually conclusive and the relative importance placed on individual facts may vary depending on the situation. In accordance with ASC 323-10-35-32, Investments — Equity Method and Joint Ventures, an impairment charge would only be recognized in earnings for a decline in value that is determined to be other-than-temporary.

Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment such as an acceptance of a deed-in-lieu of foreclosure. These OREO properties are recorded at estimated fair value less the costs to sell at the time of foreclosure or at the lower of cost or estimated fair value less the costs to sell subsequent to acquisition. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. OREO properties are classified as Level 3.

17

The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of September 30, 2025 and December 31, 2024:

Assets Measured at Fair Value on a Nonrecurring Basis
as of September 30, 2025
($ in thousands) Level 1 Level 2 Level 3 Fair Value Measurements
Loans held-for-investment:
Commercial:
Commercial and industrial (“C&I”) $ —   $ —   $ 30,755   $ 30,755  
Commercial real estate (“CRE”):
CRE —   —   7,866   7,866  

Total loans held-for-investment $ —   $ —   $ 38,621   $ 38,621  
Affordable housing partnership, tax credit and CRA investments, net
$ —   $ —   $ 976   $ 976  
OREO (1)
$ —   $ —   $ 6,595   $ 6,595  

Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2024
($ in thousands) Level 1 Level 2 Level 3 Fair Value Measurements
Loans held-for-investment:
Commercial:
C&I $ —   $ —   $ 48,384   $ 48,384  
CRE:
CRE —   —   1,678   1,678  

  Construction and land
—   —   11,316   11,316  

Total commercial —   —   61,378   61,378  
Consumer:
Residential mortgage:
Single-family residential —   —   108   108  

Total consumer —   —   108   108  
Total loans held-for-investment $ —   $ —   $ 61,486   $ 61,486  
Affordable housing partnership, tax credit and CRA investments, net $ —   $ —   $ 5,000   $ 5,000  
OREO (1)
$ —   $ —   $ 19,386   $ 19,386  

(1) Represents the carrying value of OREO property that was written down after its initial classification as OREO and included in Other assets on the Consolidated Balance Sheet.

18

The following table presents the change in the fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
Loans held-for-investment:
Commercial:
C&I $ ( 28,616 ) $ ( 266 ) $ ( 30,897 ) $ ( 16,025 )
CRE:
CRE —   89   ( 19,885 ) —  
Multifamily residential —   ( 49 ) —   ( 49 )
Construction and land —   ( 145 ) —   ( 2,289 )
Total CRE —   ( 105 ) ( 19,885 ) ( 2,338 )
Total commercial ( 28,616 ) ( 371 ) ( 50,782 ) ( 18,363 )
Consumer:
Residential mortgage:
Single-family residential —   10   —   ( 1,396 )

Total consumer —   10   —   ( 1,396 )
Total loans held-for-investment $ ( 28,616 ) $ ( 361 ) $ ( 50,782 ) $ ( 19,759 )

Affordable housing partnership, tax credit and CRA investments, net ( 550 ) —   ( 550 ) —  

OREO ( 1,133 ) —   ( 1,133 ) ( 2,576 )
Total nonrecurring fair value losses
$ ( 30,299 ) $ ( 361 ) $ ( 52,465 ) $ ( 22,335 )

The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of September 30, 2025 and December 31, 2024:

($ in thousands) Fair Value Measurements (Level 3) Valuation Techniques Unobservable Inputs Range of Inputs Weighted-Average of Inputs
September 30, 2025

Loans held-for-investment $ 17,844   Fair value of collateral Discount 35 % — 70 %
41 % (1)

$ 5,574   Fair value of collateral Contract value NM
NM
$ 15,203   Fair value of property Selling cost 8 % — 20 %
13 % (1)

Affordable housing partnership, tax credit and CRA investments, net
$ 976   Individual analysis of each investment Expected future tax benefits and distributions
NM NM

OREO $ 6,595   Fair value of property Selling cost 8 % 8 %

December 31, 2024

Loans held-for-investment $ 910   Fair value of collateral Discount 50 %
50 %
$ 22,993   Fair value of collateral Contract value NM NM
$ 37,583   Fair value of property Selling cost 8 % — 20 %
10 % (1)

Affordable housing partnership, tax credit and CRA investments, net $ 5,000   Individual analysis of each investment Expected future tax benefits and distributions NM NM

OREO $ 19,386   Fair value of property Selling cost 8 % 8 %

NM — Not meaningful.
(1) Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2025 and December 31, 2024.
19

Disclosures about the Fair Value of Financial Instruments

The following tables present the fair value estimates for financial instruments as of September 30, 2025 and December 31, 2024, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets , and accrued interest payable which is included in Accrued expenses and other liabilities . These financial instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet.

September 30, 2025
($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value
Financial assets:
Cash and cash equivalents $ 4,694,194   $ 4,694,194   $ —   $ —   $ 4,694,194  
Interest-bearing deposits with banks $ 68,200   $ —   $ 68,200   $ —   $ 68,200  
Resale agreements $ 425,000   $ —   $ 351,212   $ —   $ 351,212  
HTM debt securities $ 2,880,682   $ 519,800   $ 1,947,562   $ —   $ 2,467,362  
Restricted equity securities, at cost $ 152,536   $ —   $ 152,536   $ —   $ 152,536  
Loans held-for-sale $ 19,596   $ —   $ 19,596   $ —   $ 19,596  
Loans held-for-investment, net $ 54,976,252   $ —   $ —   $ 53,569,366   $ 53,569,366  
Mortgage servicing rights $ 4,362   $ —   $ —   $ 7,601   $ 7,601  
Accrued interest receivable $ 315,633   $ —   $ 315,633   $ —   $ 315,633  
Financial liabilities:
Demand, checking, savings and money market deposits $ 41,296,069   $ —   $ 41,296,069   $ —   $ 41,296,069  
Time deposits $ 25,291,487   $ —   $ 25,287,515   $ —   $ 25,287,515  
Short-term borrowings $ 9,851   $ —   $ 9,851   $ —   $ 9,851  

FHLB advances $ 3,000,000   $ —   $ 3,002,069   $ —   $ 3,002,069  
Repurchase agreements $ 53,489   $ —   $ 53,489   $ —   $ 53,489  
Long-term debt $ 32,239   $ —   $ 31,629   $ —   $ 31,629  
Accrued interest payable $ 56,703   $ —   $ 56,703   $ —   $ 56,703  

December 31, 2024
($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value
Financial assets:
Cash and cash equivalents $ 5,250,742   $ 5,250,742   $ —   $ —   $ 5,250,742  
Interest-bearing deposits with banks $ 48,198   $ —   $ 48,198   $ —   $ 48,198  
Resale agreements $ 425,000   $ —   $ 329,769   $ —   $ 329,769  
HTM debt securities $ 2,917,413   $ 499,858   $ 1,887,896   $ —   $ 2,387,754  
Restricted equity securities, at cost $ 165,259   $ —   $ 165,259   $ —   $ 165,259  

Loans held-for-investment, net $ 53,024,585   $ —   $ —   $ 51,328,254   $ 51,328,254  

Mortgage servicing rights $ 5,234   $ —   $ —   $ 8,822   $ 8,822  
Accrued interest receivable $ 316,392   $ —   $ 316,392   $ —   $ 316,392  
Financial liabilities:

Demand, checking, savings and money market deposits $ 39,959,251   $ —   $ 39,959,251   $ —   $ 39,959,251  
Time deposits $ 23,215,772   $ —   $ 23,225,317   $ —   $ 23,225,317  

FHLB advances $ 3,500,000   $ —   $ 3,497,953   $ —   $ 3,497,953  

Long-term debt $ 32,001   $ —   $ 31,246   $ —   $ 31,246  
Accrued interest payable $ 61,950   $ —   $ 61,950   $ —   $ 61,950  

20

Note 3 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements

The Company’s resale agreements expose it to credit risk from both the counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with the counterparties. The relevant agreements allow for an efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both September 30, 2025 and December 31, 2024.

Securities Purchased under Resale Agreements

Gross securities purchased under resale agreements were $ 425 million as of both September 30, 2025 and December 31, 2024.

Securities Sold under Repurchase Agreements

Gross repurchase agreements were $ 53 million as of September 30, 2025, which will mature in 2025. There were no repurchase agreements as of December 31, 2024.

Balance Sheet Offsetting

The Company’s resale and repurchase agreements are transacted under legally enforceable master netting agreements that, in the event of default by the counterparty, provide the Company with the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting Repurchase and Reverse Repurchase Agreements . Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by third-party trustees.

The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024:

Gross Amounts of Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts of Assets Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
($ in thousands)
Collateral Received (1)
Net Amount
September 30, 2025
Resale agreements $ 425,000   $ —   $ 425,000   $ ( 349,887 ) $ 75,113  

Gross Amounts of Recognized Liabilities
Gross Amounts Offset on the Consolidated Balance Sheet
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet
Gross Amounts Not Offset on the Consolidated Balance Sheet
Net Amount

Collateral Pledged (2)

Repurchase agreements $ 53,489   $ —   $ 53,489   $ ( 53,489 ) $ —  

21

Gross Amounts of Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts of Assets Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
($ in thousands)
Collateral Received (1)
Net Amount
December 31, 2024
Resale agreements $ 425,000   $ —   $ 425,000   $ ( 329,603 ) $ 95,397  

(1) Represents the fair value of assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.
(2) Represents the fair value of assets the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

In addition to the amounts included in the table above, the Company also has balance sheet netting related to derivatives. Refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.

Note 4 — Securities

The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses, and fair value by major categories of AFS and HTM debt securities as of September 30, 2025 and December 31, 2024:

September 30, 2025
($ in thousands) Amortized Cost (1)
Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses
Fair Value
AFS debt securities:
U.S. Treasury securities $ 875,577   $ 640   $ ( 20,002 ) $ —   $ 856,215  
U.S. government agency and U.S. government-sponsored enterprise debt securities 288,368   —   ( 31,982 ) —   256,386  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) :

Commercial mortgage-backed securities 359,373   97   ( 31,039 ) —   328,431  
Residential mortgage-backed securities 9,816,928   56,707   ( 190,200 ) —   9,683,435  
Municipal securities 282,015   21   ( 36,854 ) —   245,182  
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities 224,699   —   ( 23,706 ) ( 3,000 ) 197,993  
Residential mortgage-backed securities 466,826   —   ( 63,148 ) —   403,678  
Corporate debt securities 596,900   —   ( 96,030 ) —   500,870  
Foreign government bonds 245,978   617   ( 9,576 ) —   237,019  
Asset-backed securities 32,649   —   ( 706 ) —   31,943  

Total AFS debt securities 13,189,313   58,082   ( 503,243 ) ( 3,000 ) 12,741,152  
HTM debt securities:
U.S. Treasury securities 539,255   —   ( 19,455 ) —   519,800  
U.S. government agency and U.S. government-sponsored enterprise debt securities 1,006,602   —   ( 152,505 ) —   854,097  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) :

Commercial mortgage-backed securities 476,530   —   ( 71,706 ) —   404,824  
Residential mortgage-backed securities 672,283   —   ( 129,010 ) —   543,273  
Municipal securities 186,012   —   ( 40,644 ) —   145,368  
Total HTM debt securities 2,880,682   —   ( 413,320 ) —   2,467,362  
Total debt securities $ 16,069,995   $ 58,082   $ ( 916,563 ) $ ( 3,000 ) $ 15,208,514  

Refer to table footnotes on the following page.
22

December 31, 2024
($ in thousands) Amortized Cost (1)
Gross Unrealized Gains Gross Unrealized Losses Fair Value
AFS debt securities:
U.S. Treasury securities $ 676,300   $ —   $ ( 38,035 ) $ 638,265  
U.S. government agency and U.S. government-sponsored enterprise debt securities 308,220   —   ( 45,633 ) 262,587  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) :

Commercial mortgage-backed securities 472,535   886   ( 47,207 ) 426,214  
Residential mortgage-backed securities 7,974,768   12,278   ( 248,786 ) 7,738,260  
Municipal securities 287,301   38   ( 37,186 ) 250,153  
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities 294,235   2   ( 35,767 ) 258,470  
Residential mortgage-backed securities 514,527   —   ( 80,919 ) 433,608  
Corporate debt securities 653,500   —   ( 127,334 ) 526,166  
Foreign government bonds 244,803   2,069   ( 12,992 ) 233,880  
Asset-backed securities 35,086   —   ( 371 ) 34,715  
CLOs 44,500   —   ( 7 ) 44,493  
Total AFS debt securities 11,505,775   15,273   ( 674,237 ) 10,846,811  
HTM debt securities:
U.S. Treasury securities 535,080   —   ( 35,222 ) 499,858  
U.S. government agency and U.S. government-sponsored enterprise debt securities 1,004,479   —   ( 200,259 ) 804,220  
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) :

Commercial mortgage-backed securities 486,388   —   ( 91,461 ) 394,927  
Residential mortgage-backed securities 703,833   —   ( 155,626 ) 548,207  
Municipal securities 187,633   —   ( 47,091 ) 140,542  
Total HTM debt securities 2,917,413   —   ( 529,659 ) 2,387,754  
Total debt securities $ 14,423,188   $ 15,273   $ ( 1,203,896 ) $ 13,234,565  

(1) Amortized cost excludes accrued interest receivables which are presented within Other assets on the Consolidated Balance Sheet. As of September 30, 2025 and December 31, 2024, the accrued interest receivables were $ 47 million and $ 45 million, respectively. For the Company’s accounting policy related to debt securities’ accrued interest receivables, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.
(2) Includes GNMA AFS debt securities totaling $ 9.1  billion of both amortized cost and fair value as of September 30, 2025, and $ 7.3  billion of amortized cost and $ 7.2 billion of fair value as of December 31, 2024.
(3) Includes GNMA HTM debt securities totaling $ 81  million of amortized cost and $ 66  million of fair value as of September 30, 2025, and $ 86 million of amortized cost and $ 68 million of fair value as of December 31, 2024.

23

Unrealized Losses of Available-for-Sale Debt Securities

The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities in a continuous unrealized loss position, aggregated by investment category and loss duration as of September 30, 2025 and December 31, 2024.

September 30, 2025
Less Than 12 Months 12 Months or More Total
($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
AFS debt securities:
U.S. Treasury securities $ —   $ —   $ 596,197   $ ( 20,002 ) $ 596,197  

$ ( 20,002 )
U.S. government agency and U.S. government sponsored enterprise debt securities —   —   256,386   ( 31,982 ) 256,386   ( 31,982 )
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities —   —   319,280   ( 31,039 ) 319,280   ( 31,039 )
Residential mortgage-backed securities 122,698   ( 503 ) 1,631,531   ( 189,697 ) 1,754,229   ( 190,200 )
Municipal securities 1,949   ( 43 ) 240,342   ( 36,811 ) 242,291   ( 36,854 )
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities —   —   196,038   ( 23,706 ) 196,038   ( 23,706 )
Residential mortgage-backed securities —   —   403,678   ( 63,148 ) 403,678   ( 63,148 )
Corporate debt securities 2,389   ( 11 ) 479,481   ( 96,019 ) 481,870   ( 96,030 )
Foreign government bonds 7,027   ( 16 ) 90,440   ( 9,560 ) 97,467   ( 9,576 )
Asset-backed securities —   —   31,943   ( 706 ) 31,943   ( 706 )

Total AFS debt securities $ 134,063   $ ( 573 ) $ 4,245,316   $ ( 502,670 ) $ 4,379,379   $ ( 503,243 )

December 31, 2024
Less Than 12 Months 12 Months or More Total
($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
AFS debt securities:
U.S. Treasury securities $ —   $ —   $ 638,265   $ ( 38,035 ) $ 638,265   $ ( 38,035 )
U.S. government agency and U.S. government-sponsored enterprise debt securities —   —   262,587   ( 45,633 ) 262,587   ( 45,633 )
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities 2,741   ( 30 ) 377,756   ( 47,177 ) 380,497   ( 47,207 )
Residential mortgage-backed securities 2,719,228   ( 16,404 ) 1,528,252   ( 232,382 ) 4,247,480   ( 248,786 )
Municipal securities 2,763   ( 95 ) 245,360   ( 37,091 ) 248,123   ( 37,186 )
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities 10,767   ( 332 ) 235,668   ( 35,435 ) 246,435   ( 35,767 )
Residential mortgage-backed securities —   —   433,608   ( 80,919 ) 433,608   ( 80,919 )
Corporate debt securities —   —   526,166   ( 127,334 ) 526,166   ( 127,334 )
Foreign government bonds —   —   87,008   ( 12,992 ) 87,008   ( 12,992 )
Asset-backed securities —   —   34,715   ( 371 ) 34,715   ( 371 )
CLOs —   —   44,493   ( 7 ) 44,493   ( 7 )
Total AFS debt securities $ 2,735,499   $ ( 16,861 ) $ 4,413,878   $ ( 657,376 ) $ 7,149,377   $ ( 674,237 )

24

As of September 30, 2025, the Company had 446 AFS debt securities in a gross unrealized loss position, primarily consisting of 228 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 53 corporate debt securities and 71 non-agency mortgage-backed securities. In comparison, as of December 31, 2024, the Company had 541 AFS debt securities in a gross unrealized loss position, primarily consisting of 290 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities and 83 non-agency mortgage-backed securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

The Company evaluates each AFS debt security where the fair value declines below amortized cost. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and the widening of liquidity and/or credit spreads. U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise debt and mortgage-backed securities are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The remaining securities that were in an unrealized loss position as of September 30, 2025 were mainly comprised of the following:

• Corporate debt securities — The market value movement as of September 30, 2025 was primarily due to interest rate movement and spread change. A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S. banks. These securities are nearly all rated investment grade by nationally recognized statistical rating organizations (“NRSROs”) and issued by well-capitalized financial institutions with strong profitability. The contractual payments from these corporate debt securities have been and are expected to be received on time. The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities.
• Non-agency mortgage-backed securities — The market value movement for the majority of these securities as of September 30, 2025 was primarily due to interest rate movement and spread change. In contrast, one non-agency commercial mortgage-backed security experienced a deterioration in both its credit rating and expected cash flows, resulting in its fair value falling below its amortized cost. Consequently, a credit-related impairment of $ 3 million was recognized through allowance for credit losses as of September 30, 2025. For the remaining non-agency mortgage-backed securities, a substantial majority are rated investment grade by NRSROs or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time. Accordingly, the Company believes the risk of credit losses on the remaining securities is low.

As of both September 30, 2025 and December 31, 2024, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would not have to sell these securities before the recovery of their amortized cost. The majority of the issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the majority of the amortized cost basis of these securities.

The Company recorded $ 3 million in allowance for credit losses related to a non-agency commercial mortgage-backed security as of September 30, 2025, which was recognized as a provision for credit losses for each of the three and nine months ended September 30, 2025, compared with no allowance for credit losses as of December 31, 2024, and no provision for credit losses recognized for each of the three and nine months ended September 30, 2024.

25

Allowance for Credit Losses on Held-to-Maturity Debt Securities

The Company separately evaluates its HTM debt securities for any credit losses using an expected loss model, similar to the methodology used for loans. For additional information on the Company’s credit loss methodology, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of September 30, 2025, all HTM securities were rated investment grade by NRSROs and issued, guaranteed, or supported by U.S. government entities and agencies. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of both September 30, 2025 and December 31, 2024. Overall, the Company believes that the credit support levels of the debt securities are strong, and based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received.

Realized Gains and Credit Losses

The following table presents the gross realized gains from the sales of AFS debt securities (pre-tax), credit losses and the related tax (benefit) expense included in earnings for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024

Gross realized gains from sales $ 57   $ 145   $ 934   $ 1,979  
Credit losses
$ ( 3,000 ) $ —   $ ( 3,000 ) $ —  
Related tax (benefit) expense
$ ( 858 ) $ 43   $ ( 611 ) $ 585  

Interest Income

The following table presents the composition of interest income on debt securities for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024

Taxable interest $ 154,893   $ 118,985   $ 449,155   $ 296,003  
Nontaxable interest 3,669   4,998   10,979   15,104  
Total interest income on debt securities $ 158,562   $ 123,983   $ 460,134   $ 311,107  

26

Contractual Maturities of Available-for-Sale and Held-to-Maturity Debt Securities

The following tables present the contractual maturities, amortized cost, fair value and weighted-average yields of AFS and HTM debt securities as of September 30, 2025. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.

($ in thousands) Within One Year After One Year through Five Years
After Five Years through Ten Years After Ten Years Total
AFS debt securities:
U.S. Treasury securities
Amortized cost $ 339,871   $ 486,357   $ 49,349   $ —   $ 875,577  
Fair value 336,058   470,466   49,691   —   856,215  
Weighted-average yield (1)
2.61 % 1.32 % 3.95 % — % 1.97 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost —   26,677   200,833   60,858   288,368  
Fair value —   26,066   178,519   51,801   256,386  
Weighted-average yield (1)
— % 1.58 % 2.06 % 2.19 % 2.05 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost 4,755   83,696   111,891   9,975,959   10,176,301  
Fair value 4,741   81,229   103,361   9,822,535   10,011,866  
Weighted-average yield (1) (2)
3.57 % 2.91 % 2.94 % 5.10 % 5.05 %
Municipal securities
Amortized cost 9,098   21,298   22,629   228,990   282,015  
Fair value 8,987   20,689   19,446   196,060   245,182  
Weighted-average yield (1) (2)
1.85 % 2.41 % 2.40 % 2.26 % 2.27 %
Non-agency mortgage-backed securities
Amortized cost 3,970   2,899   1,955   682,701   691,525  
Fair value 3,924   2,875   1,955   592,917   601,671  
Weighted-average yield (1)
5.21 % 3.21 % 5.34 % 2.28 % 2.30 %
Corporate debt securities
Amortized cost 35,900   4,000   382,000   175,000   596,900  
Fair value 35,785   3,975   326,549   134,561   500,870  
Weighted-average yield (1)
4.45 % 4.00 % 2.69 % 2.02 % 2.61 %
Foreign government bonds
Amortized cost 117,677   28,301   50,000   50,000   245,978  
Fair value 118,134   28,445   49,846   40,594   237,019  
Weighted-average yield (1)
2.49 % 1.81 % 4.74 % 1.50 % 2.67 %
Asset-backed securities
Amortized cost —   —   —   32,649   32,649  
Fair value —   —   —   31,943   31,943  
Weighted-average yield (1)
— % — % — % 5.04 % 5.04 %

Total AFS debt securities
Amortized cost $ 511,271   $ 653,228   $ 818,657   $ 11,206,157   $ 13,189,313  
Fair value $ 507,629   $ 633,745   $ 729,367   $ 10,870,411   $ 12,741,152  
Weighted-average yield (1)
2.73 % 1.61 % 2.77 % 4.79 % 4.42 %

27

($ in thousands) Within One Year After One Year through Five Years
After Five Years through Ten Years After Ten Years Total
HTM debt securities:
U.S. Treasury securities
Amortized cost $ — $ 539,255 $ — $ — $ 539,255
Fair value — 519,800 — — 519,800
Weighted-average yield (1)
— % 1.05 % — % — % 1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost — 105,322 467,017 434,263 1,006,602
Fair value — 96,630 403,405 354,062 854,097
Weighted-average yield (1)
— % 1.37 % 1.93 % 1.98 % 1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost — 41,604 168,827 938,382 1,148,813
Fair value — 38,162 145,755 764,180 948,097
Weighted-average yield (1) (2)
— % 1.54 % 1.77 % 1.68 % 1.68 %
Municipal securities
Amortized cost — — — 186,012 186,012
Fair value — — — 145,368 145,368
Weighted-average yield (1) (2)
— % — % — % 2.02 % 2.02 %
Total HTM debt securities
Amortized cost $ — $ 686,181 $ 635,844 $ 1,558,657 $ 2,880,682
Fair value $ — $ 654,592 $ 549,160 $ 1,263,610 $ 2,467,362
Weighted-average yield (1)
— % 1.13 % 1.89 % 1.80 % 1.66 %

(1) Weighted-average yields are computed based on amortized cost balances.
(2) Yields on tax-exempt securities are not presented on a tax-equivalent basis.

As of September 30, 2025 and December 31, 2024, AFS and HTM debt securities with carrying valu es of $ 4.4  billion and $ 5.4 billion, respectively, were pledged to secure borrowings and for other purposes required or permitted by law. As of September 30, 2025, $ 2.5  billion of AFS and HTM debt securities were prepositioned for the Federal Reserve Bank (“ FRB”) Standing Repurchase Agreement Facility.

Restricted Equity Securities

The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024:

($ in thousands) September 30, 2025 December 31, 2024
FRB of San Francisco stock
$ 65,095   $ 63,930  
FHLB stock 87,441   101,329  
Total restricted equity securities $ 152,536   $ 165,259  

28

Note 5 — Derivatives

The Company uses derivative instruments to manage exposure to market risk, primarily interest rate and foreign currency risks, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, the funding needs, as well as the Bank’s investment in East West Bank (China) Limited. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements of the Company’s 2024 Form 10-K.

The following table presents the notional amounts and fair values of the Company’s derivatives as of September 30, 2025 and December 31, 2024. Certain derivative contracts are cleared through central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values of $ 16 million and $ 9 million, respectively, as of September 30, 2025. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $ 17 million and $ 15 million, respectively, as of December 31, 2024. Total gross derivative asset and liability fair values are then adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet.

September 30, 2025 December 31, 2024
Fair Value Fair Value
($ in thousands) Notional Amount Assets  Liabilities  Notional Amount Assets  Liabilities 
Derivatives designated as hedging instruments:

Cash flow hedges:
Interest rate contracts $ 4,250,000   $ 42,415   $ 1,010   $ 5,250,000   $ 5,647   $ 35,211  

Derivatives not designated as hedging instruments:
Interest rate contracts $ 19,006,624   $ 270,986   $ 269,276   $ 17,005,381   $ 379,664   $ 378,961  
Commodity contracts (1)
—   48,465   55,775   —   48,499   45,328  
Foreign exchange contracts 4,263,978   45,999   40,964   5,201,460   89,083   71,254  
Credit contracts (2)
210,205   17   58   168,999   1   12  
Equity contracts —   547   (3) 15,119   (4) —   239   (3) 15,119   (4)
Total derivatives not designated as hedging instruments $ 23,480,807   $ 366,014   $ 381,192   $ 22,375,840   $ 517,486   $ 510,674  
Gross derivative assets/liabilities $ 408,429   $ 382,202   $ 523,133   $ 545,885  
Less: Master netting agreements ( 86,138 ) ( 86,138 ) ( 111,124 ) ( 111,124 )
Less: Cash collateral received ( 186,381 ) ( 21,016 ) ( 316,168 ) ( 1,160 )
Net derivative assets/liabilities $ 135,910   $ 275,048   $ 95,841   $ 433,601  

(1) The notional amount of the Company’s commodity contracts totaled 19 million barrels of crude oil and 364 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of September 30, 2025. In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.
(2) The notional amount for the credit contracts reflects the Company’s pro-rata share of the notional amount in the underlying derivative instruments in RPAs.
(3) The Company held warrant equity contracts in nine and eight private companies as of September 30, 2025 and December 31, 2024, respectively.
(4) Equity contracts classified as derivative liabilities consist of 349  thousand performance-based RSUs granted as part of EWBC’s consideration in an investment.
29

Derivatives Designated as Hedging Instruments

Cash Flow Hedges — The Company uses interest rate swaps and collars to hedge the variability in the interest amount received on certain floating-rate commercial loans due to changes in the contractually specified interest rates. As of September 30, 2025, interest rate contracts in notional amounts of $ 4.3  billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments. Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and are recorded within the same income statement line item as the hedged cash flows. Considering the interest rates, yield curve and notional amount as of September 30, 2025, the Company expects to reclassify an estimated $ 3  million of after-tax net gains on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months.

The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and nine months ended September 30, 2025 and 2024. The after-tax impact of cash flow hedges on AOCI is shown in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-Q.

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
(Losses) gains recognized in AOCI:

Interest rate contracts $ ( 2,658 ) $ 93,842   $ 53,536   $ ( 21,629 )

Losses reclassified from AOCI into earnings:

Interest and dividend income (for cash flow hedges on loans) $ 6,001   $ 24,272   $ 18,584   $ 73,471  

Net Investment Hedges — The Company entered into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi (“RMB”). There was no active net investment hedge during the three and nine months ended September 30, 2025. The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
Gains recognized in AOCI $ —   $ —   $ —   $ 586  

Derivatives Not Designated as Hedging Instruments

Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk. The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers, as well as to meet its funding needs in certain foreign currencies. A majority of the foreign exchange contracts had original maturities of one year or less as of both September 30, 2025 and December 31, 2024.

30

The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
Fair Value Fair Value
($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities
Customer-related positions:
Interest rate contracts:
Swaps $ 7,526,652   $ 51,303   $ 215,703   $ 6,854,372   $ 11,828   $ 361,256  
Written options 1,519,006   —   1,942   1,458,428   —   4,953  
Collars and corridors 457,654   483   96   181,039   80   440  
Subtotal 9,503,312   51,786   217,741   8,493,839   11,908   366,649  
Foreign exchange contracts:
Forwards and spot 990,408   21,036   3,101   996,486   11,693   24,201  
Swaps 830,798   15,555   2,406   1,504,469   16,117   25,366  
Written options
76,120   —   152   —   —   —  
Subtotal 1,897,326   36,591   5,659   2,500,955   27,810   49,567  
Total $ 11,400,638   $ 88,377   $ 223,400   $ 10,994,794   $ 39,718   $ 416,216  
Economic hedges and other:

Interest rate contracts:
Swaps $ 7,526,652   $ 217,149   $ 51,010   $ 6,872,075   $ 362,323   $ 12,228  
Purchased options 1,519,006   1,955   —   1,458,428   4,990   —  

Collars and corridors 457,654   96   525   181,039   443   84  
Subtotal 9,503,312   219,200   51,535   8,511,542   367,756   12,312  
Foreign exchange contracts:
Forwards and spot 212,499   1,621   3,761   86,750   2,318   1,738  
Swaps 2,078,033   7,635   31,544   2,613,755   58,955   19,949  
Purchased options
76,120   152   —   —   —   —  
Subtotal 2,366,652   9,408   35,305   2,700,505   61,273   21,687  
Total $ 11,869,964   $ 228,608   $ 86,840   $ 11,212,047   $ 429,029   $ 33,999  

31

The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
Fair Value Fair Value
($ and unit in thousands) Notional Units Assets Liabilities Notional Units Assets Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps 4,839   Barrels $ 293   $ 20,392   4,830   Barrels $ 4,682   $ 6,874  
Collars 4,836   Barrels 699   9,154   5,477   Barrels 1,604   3,362  

Subtotal 9,675   Barrels 992   29,546   10,307   Barrels 6,286   10,236  
Natural gas:
Swaps 103,622   MMBTUs 9,516   12,452   141,736   MMBTUs 13,095   17,708  
Collars 81,030   MMBTUs 4,940   5,535   62,045   MMBTUs 6,061   4,556  
Written options 611   MMBTUs 113   —   1,234   MMBTUs 167   —  
Subtotal 185,263   MMBTUs 14,569   17,987   205,015   MMBTUs 19,323   22,264  
Total $ 15,561   $ 47,533   $ 25,609   $ 32,500  
Economic hedges:
Commodity contracts:
Crude oil:
Swaps 4,839   Barrels $ 16,094   $ 155   4,830   Barrels $ 4,479   $ 3,893  
Collars 4,836   Barrels 4,307   73   5,477   Barrels 1,547   76  

Subtotal 9,675   Barrels 20,401   228   10,307   Barrels 6,026   3,969  
Natural gas:
Swaps 99,105   MMBTUs 8,655   5,076   139,136   MMBTUs 13,323   5,056  
Collars 79,310   MMBTUs 3,848   2,833   61,341   MMBTUs 3,541   3,650  
Purchased options 611   MMBTUs —   105   1,234   MMBTUs —   153  
Subtotal 179,026   MMBTUs 12,503   8,014   201,711   MMBTUs 16,864   8,859  
Total $ 32,904   $ 8,242   $ 22,890   $ 12,828  

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndicated loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure in the credit protection sold RPAs would be $ 641 thousand and $ 170 thousand as of September 30, 2025 and December 31, 2024, respectively.

32

The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
Notional Amount
Fair Value Notional Amount
Fair Value
($ in thousands)
Assets Liabilities Assets Liabilities
RPAs — protection sold (1)
$ 146,126   $ —   $ 58   $ 133,174   $ —   $ 12  
RPAs — protection purchased
64,079   17   —   35,825   1   —  
Total RPAs $ 210,205   $ 17   $ 58   $ 168,999   $ 1   $ 12  

(1) All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 2.3 years and 1.6 years as of September 30, 2025 and December 31, 2024, respectively.

Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of its borrowers’ companies, which are mainly in the technology and life sciences sectors. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. In connection with the Company’s investment in an investee during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration. The vesting of these equity contracts is contingent on the investee meeting certain financial performance targets during the future performance period. For additional information on these equity contracts, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q.

The following table presents the net gains (losses) due to fair value changes that are recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) Classification on Consolidated Statement of Income 2025 2024 2025 2024
Derivatives not designated as hedging instruments:
Interest rate contracts Customer derivative income (loss), net of mark-to-market adjustments
$ ( 414 ) $ ( 4,577 ) $ ( 3,723 ) $ ( 2,994 )
Foreign exchange contracts Foreign exchange income 13,576   6,075   40,601   33,204  
Credit contracts Customer derivative income (loss), net of mark-to-market adjustments
( 27 ) ( 17 ) ( 30 ) ( 20 )
Equity contracts - warrants Lending and loan servicing fees
170   ( 8 ) 308   ( 104 )

Commodity contracts Customer derivative income (loss), net of mark-to-market adjustments
123   114   521   681  
Net gains $ 13,428   $ 1,587   $ 37,677   $ 30,767  

Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. Such an event primarily relates to a downgrade of the credit rating of East West Bank to below investment grad e. As of September 30, 2025, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 5 million , for which $ 4 million collateral was posted to cover these positions. In comparison, a s of December 31, 2024, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 1 million, for which $ 1 million collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, the Company would have been required to post approximately $ 1 million and minimal additional collateral as of September 30, 2025 and December 31, 2024, respectively.

33

Offsetting of Derivatives

The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross fair values of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown:

($ in thousands) As of September 30, 2025
Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
Gross Amounts Recognized (1)
Master Netting Arrangements Cash Collateral Received (3)
Security Collateral Received (5)
Net Amount
Derivative assets $ 408,429   $ ( 86,138 ) $ ( 186,381 ) $ 135,910   $ ( 37,522 ) $ 98,388  

Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
 Gross Amounts Recognized (2)
Master Netting Arrangements Cash Collateral Pledged (4)
Security Collateral Pledged (5)
Net Amount
Derivative liabilities $ 382,202   $ ( 86,138 ) $ ( 21,016 ) $ 275,048   $ —   $ 275,048  

($ in thousands) As of December 31, 2024
Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
 Gross Amounts Recognized (1)
Master Netting Arrangements Cash Collateral Received (3)
Security Collateral Received (5)
Net Amount
Derivative assets $ 523,133   $ ( 111,124 ) $ ( 316,168 ) $ 95,841   $ ( 55,222 ) $ 40,619  

Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet
 Gross Amounts Recognized (2)
Master Netting Arrangements Cash Collateral Pledged (4)
Security Collateral Pledged (5)
Net Amount
Derivative liabilities $ 545,885   $ ( 111,124 ) $ ( 1,160 ) $ 433,601   $ —   $ 433,601  

(1) Includes $ 9 million and $ 4 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2025 and December 31, 2024, respectively.
(2) Includes $ 19 million and $ 27 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of September 30, 2025 and December 31, 2024, respectively.
(3) Gross cash collateral received under master netting arrangements or similar agreements was $ 194 million and $ 322 million as of September 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral received, $ 186 million and $ 316 million were used to offset derivative assets as of September 30, 2025 and December 31, 2024, respectively.
(4) Gross cash collateral pledged under master netting arrangements or similar agreements was $ 21 million and $ 1 million as of September 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral pledged, $ 21 million and $ 1 million were used to offset derivative liabilities as of September 30, 2025 and December 31, 2024, respectively.
(5) Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts.

In addition to the amounts included in the tables above, the Company has balance sheet netting related to resale agreements. Refer to Note 3 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-Q for additional information. Refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for fair value measurement disclosures on derivatives.
34

Note 6 — Loans Receivable and Allowance for Credit Losses

The following table presents the composition of the Company’s loans held-for-investment outstanding as of September 30, 2025 and December 31, 2024:

($ in thousands) September 30, 2025 December 31, 2024
Commercial:
C&I $ 18,001,529   $ 17,397,158  
CRE:
CRE 15,231,167   14,655,340  
Multifamily residential 5,037,284   4,953,442  
Construction and land 776,587   666,162  
Total CRE 21,045,038   20,274,944  
Total commercial 39,046,567   37,672,102  
Consumer:
Residential mortgage:
Single-family residential 14,820,911   14,175,446  
Home equity lines of credit (“HELOCs”)
1,852,408   1,811,628  
Total residential mortgage 16,673,319   15,987,074  
Other consumer 46,886   67,461  
Total consumer 16,720,205   16,054,535  
Total loans held-for-investment (1)
$ 55,766,772   $ 53,726,637  
ALLL
( 790,520 ) ( 702,052 )
Loans held-for-investment, net (1)
$ 54,976,252   $ 53,024,585  

(1) Includes $ 24 million and $ 46 million of net deferred loan fees and net unamortized premiums as of September 30, 2025 and December 31, 2024, respectively.

Accrued interest receivable on loans held-for-investment was $ 252 million and $ 255 million as of September 30, 2025 and December 31, 2024, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income recognized on nonaccrual loans was $ 6 million for each of the three and nine months ended September 30, 2025, compared with immaterial amounts for the corresponding prior year periods. The interest income reversed was insignificant for each of the three and nine months ended September 30, 2025 and 2024. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2024 Form 10-K. The Company may occasionally have loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $ 40.9 billion and $ 38.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of September 30, 2025 and December 31, 2024.

Credit Quality Indicators

All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings.

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:
• Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.
• Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”
35

• Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”
• Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”
• Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans.
36

The following tables summarize the Company’s loans held-for-investment and year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of the periods presented. The vintage year is the year of loan origination, renewal or major modification. Gross write-offs in the following tables are for the nine months ended September 30, 2025, and the year ended December 31, 2024. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.

September 30, 2025
Term Loans by Origination Year
($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans (1)
Total
Commercial:
C&I:
Pass $ 2,193,263   $ 2,086,065   $ 994,625   $ 621,800   $ 475,653   $ 391,866   $ 10,760,575   $ 33,095   $ 17,556,942  
Criticized (accrual) 5,157   40,604   8,483   86,222   88,050   6,870   139,136   —   374,522  
Criticized (nonaccrual)
2,988   4,836   37,506   5,310   9,442   6,762   3,221   —   70,065  

Total C&I 2,201,408   2,131,505   1,040,614   713,332   573,145   405,498   10,902,932   33,095   18,001,529  
Gross write-offs (2)
—   1,062   2,282   3,153   —   2,935   21,560   —   30,992  
CRE:
Pass 1,812,679   1,588,160   2,099,019   3,334,362   1,794,639   3,812,676   101,393   47,821   14,590,749  
Criticized (accrual) 28,560   16,357   110,291   167,451   51,519   245,672   —   —   619,850  
Criticized (nonaccrual)
4,018   —   —   —   12,330   4,220   —   —   20,568  

Subtotal CRE 1,845,257   1,604,517   2,209,310   3,501,813   1,858,488   4,062,568   101,393   47,821   15,231,167  
Gross write-offs
8,232   —   —   —   19   13,997   —   —   22,248  
Multifamily residential:
Pass 649,041   338,488   491,954   1,153,159   701,661   1,654,631   28,983   3,835   5,021,752  
Criticized (accrual) —   —   —   6,437   —   8,788   —   —   15,225  
Criticized (nonaccrual)
—   —   —   —   —   307   —   —   307  

Subtotal multifamily residential 649,041   338,488   491,954   1,159,596   701,661   1,663,726   28,983   3,835   5,037,284  
Gross write-offs
—   —   —   —   —   7   —   —   7  
Construction and land:
Pass 161,292   97,043   301,142   187,376   13,488   3,446   3,903   —   767,690  

Criticized (nonaccrual)
—   8,897   —   —   —   —   —   —   8,897  
Subtotal construction and land 161,292   105,940   301,142   187,376   13,488   3,446   3,903   —   776,587  

Total CRE 2,655,590   2,048,945   3,002,406   4,848,785   2,573,637   5,729,740   134,279   51,656   21,045,038  

Total CRE gross write-offs (2)
8,232   —   —   —   19   14,004   —   —   22,255  
Total commercial $ 4,856,998   $ 4,180,450   $ 4,043,020   $ 5,562,117   $ 3,146,782   $ 6,135,238   $ 11,037,211   $ 84,751   $ 39,046,567  
Total commercial gross write-offs (2)
$ 8,232   $ 1,062   $ 2,282   $ 3,153   $ 19   $ 16,939   $ 21,560   $ —   $ 53,247  

37

September 30, 2025
Term Loans by Origination Year
($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans (1)
Total
Consumer:
Residential mortgage:
Single-family residential:

Pass (3)
$ 2,172,946   $ 1,972,523   $ 2,454,248   $ 2,877,983   $ 1,919,814   $ 3,370,130   $ —   $ —   $ 14,767,644  
Criticized (accrual) 3,715   1,900   2,351   2,455   —   10,001   —   —   20,422  
Criticized (nonaccrual) (3)
864   5,251   6,981   4,856   3,264   11,629   —   —   32,845  
Subtotal single-family residential mortgage 2,177,525   1,979,674   2,463,580   2,885,294   1,923,078   3,391,760   —   —   14,820,911  
Gross write-offs
—   9   —   —   —   —   —   —   9  
HELOCs:
Pass 9,156   2,694   5,252   14,392   11,629   16,314   1,686,647   77,784   1,823,868  
Criticized (accrual) 13   748   11   751   —   1,431   2,026   208   5,188  
Criticized (nonaccrual)
578   3,077   1,972   1,229   —   12,577   —   3,919   23,352  
Subtotal HELOCs 9,747   6,519   7,235   16,372   11,629   30,322   1,688,673   81,911   1,852,408  

Total residential mortgage 2,187,272   1,986,193   2,470,815   2,901,666   1,934,707   3,422,082   1,688,673   81,911   16,673,319  
Total residential mortgage gross write-offs
—   9   —   —   —   —   —   —   9  
Other consumer:
Pass 25,626   34   —   4,618   130   5,575   10,825   —   46,808  
Criticized (accrual) 5   —   —   —   —   —   —   —   5  
Criticized (nonaccrual)
5   —   49   —   —   —   19   —   73  
Total other consumer 25,636   34   49   4,618   130   5,575   10,844   —   46,886  

Total consumer $ 2,212,908   $ 1,986,227   $ 2,470,864   $ 2,906,284   $ 1,934,837   $ 3,427,657   $ 1,699,517   $ 81,911   $ 16,720,205  
Total consumer gross write-offs (2)
$ — $ 9 $ — $ — $ — $ — $ — $ — $ 9
Total loans held-for-investment:
Pass $ 7,024,003   $ 6,085,007   $ 6,346,240   $ 8,193,690   $ 4,917,014   $ 9,254,638   $ 12,592,326   $ 162,535   $ 54,575,453  
Criticized (accrual) 37,450   59,609   121,136   263,316   139,569   272,762   141,162   208   1,035,212  
Criticized (nonaccrual)
8,453   22,061   46,508   11,395   25,036   35,495   3,240   3,919   156,107  
Total $ 7,069,906   $ 6,166,677   $ 6,513,884   $ 8,468,401   $ 5,081,619   $ 9,562,895   $ 12,736,728   $ 166,662   $ 55,766,772  
Total loans held-for-investment gross write-offs (2)
$ 8,232   $ 1,071   $ 2,282   $ 3,153   $ 19   $ 16,939   $ 21,560   $ —   $ 53,256  

38

December 31, 2024
Term Loans by Origination Year
($ in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Loans (1)
Total
Commercial:
C&I:
Pass $ 2,605,928   $ 1,508,948   $ 999,586   $ 612,015   $ 243,528   $ 295,884   $ 10,574,404   $ 23,032   $ 16,863,325  
Criticized (accrual) 34,412   51,415   61,041   107,355   10,538   31,160   151,747   —   447,668  
Criticized (nonaccrual)
3,822   29,181   20,273   10,666   3,225   9,135   9,863   —   86,165  

Total C&I 2,644,162   1,589,544   1,080,900   730,036   257,291   336,179   10,736,014   23,032   17,397,158  
Gross write-offs (2)
20   47,963   14,848   11,119   1,568   3,012   27,099   —   105,629  
CRE:
Pass 1,660,877   2,296,763   3,692,498   1,925,220   1,296,439   3,176,450   96,791   49,302   14,194,340  
Criticized (accrual) 34,543   44,557   90,105   31,615   75,578   167,401   —   14,771   458,570  
Criticized (nonaccrual) —   —   —   —   1,756   674   —   —   2,430  

Subtotal CRE 1,695,420   2,341,320   3,782,603   1,956,835   1,373,773   3,344,525   96,791   64,073   14,655,340  
Gross write-offs (2)
—   —   —   —   —   3   —   —   3  
Multifamily residential:

Pass 386,743   521,754   1,337,599   752,230   613,115   1,242,586   14,640   1,253   4,869,920  
Criticized (accrual) —   —   43,997   32,042   —   2,911   —   —   78,950  
Criticized (nonaccrual) —   —   —   —   —   4,572   —   —   4,572  

Subtotal multifamily residential 386,743   521,754   1,381,596   784,272   613,115   1,250,069   14,640   1,253   4,953,442  
Gross write-offs
—   —   —   —   —   10   —   —   10  
Construction and land:
Pass 90,926   328,803   184,792   41,932   —   8,393   —   —   654,846  

Criticized (nonaccrual) —   —   11,316   —   —   —   —   —   11,316  
Subtotal construction and land
90,926   328,803   196,108   41,932   —   8,393   —   —   666,162  
Gross write-offs
—   —   2,289   —   —   —   —   —   2,289  
Total CRE 2,173,089   3,191,877   5,360,307   2,783,039   1,986,888   4,602,987   111,431   65,326   20,274,944  
Total CRE gross write-offs (2)
—   —   2,289   —   —   13   —   —   2,302  
Total commercial $ 4,817,251   $ 4,781,421   $ 6,441,207   $ 3,513,075   $ 2,244,179   $ 4,939,166   $ 10,847,445   $ 88,358   $ 37,672,102  
Total commercial gross write-offs (2)
$ 20   $ 47,963   $ 17,137   $ 11,119   $ 1,568   $ 3,025   $ 27,099   $ —   $ 107,931  

39

December 31, 2024
Term Loans by Origination Year Revolving Loans Converted to Term Loans (1)

($ in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)
$ 2,360,674   $ 2,762,921   $ 3,074,668   $ 2,079,323   $ 1,407,031   $ 2,437,446   $ —   $ —   $ 14,122,063  
Criticized (accrual) 4,175   3,409   750   5,810   1,548   6,069   —   —   21,761  
Criticized (nonaccrual) (3)
2,716   9,673   1,929   2,035   2,404   12,865   —   —   31,622  
Subtotal single-family residential mortgage 2,367,565   2,776,003   3,077,347   2,087,168   1,410,983   2,456,380   —   —   14,175,446  
Gross write-offs (2)
9   —   —   —   —   —   —   —   9  
HELOCs:
Pass 7,453   3,288   4,071   3,236   7,570   8,152   1,648,337   99,488   1,781,595  
Criticized (accrual) 1,436   —   1,420   —   135   2,064   2,338   594   7,987  
Criticized (nonaccrual) 3,161   3,095   2,520   39   418   7,301   —   5,512   22,046  
Subtotal HELOCs 12,050   6,383   8,011   3,275   8,123   17,517   1,650,675   105,594   1,811,628  
Gross write-offs
—   10   —   —   —   —   —   5   15  
Total residential mortgage 2,379,615   2,782,386   3,085,358   2,090,443   1,419,106   2,473,897   1,650,675   105,594   15,987,074  
Total residential mortgage gross write-offs (2)
9   10   —   —   —   —   —   5   24  
Other consumer:
Pass 14,916   —   22,992   132   —   6,800   22,555   —   67,395  

Criticized (nonaccrual) —   —   —   —   —   —   66   —   66  
Total other consumer 14,916   —   22,992   132   —   6,800   22,621   —   67,461  

Gross write-offs (2)
—   3,000   —   —   —   —   890   —   3,890  
Total consumer $ 2,394,531   $ 2,782,386   $ 3,108,350   $ 2,090,575   $ 1,419,106   $ 2,480,697   $ 1,673,296   $ 105,594   $ 16,054,535  
Total consumer gross write-offs (2)
$ 9   $ 3,010   $ —   $ —   $ —   $ —   $ 890   $ 5   $ 3,914  
Total loans held-for-investment:

Pass $ 7,127,517   $ 7,422,477   $ 9,316,206   $ 5,414,088   $ 3,567,683   $ 7,175,711   $ 12,356,727   $ 173,075   $ 52,553,484  
Criticized (accrual) 74,566   99,381   197,313   176,822   87,799   209,605   154,085   15,365   1,014,936  
Criticized (nonaccrual)
9,699   41,949   36,038   12,740   7,803   34,547   9,929   5,512   158,217  

Total $ 7,211,782   $ 7,563,807   $ 9,549,557   $ 5,603,650   $ 3,663,285   $ 7,419,863   $ 12,520,741   $ 193,952   $ 53,726,637  
Total loans held-for-investment gross write-offs (2)
$ 29   $ 50,973   $ 17,137   $ 11,119   $ 1,568   $ 3,025   $ 27,989   $ 5   $ 111,845  

(1) No revolving commercial loans were converted to term loans during each of the three months ended September 30, 2025 and 2024. $ 16 million o f total commercial loans, comprised o f C&I revolving loans, and $ 8 million of total commercial loans, comprised of C&I and CRE revolving loans, were c onverted to term loans during the nine months ended September 30, 2025 and 2024, respectively . $ 1 million of total consumer loans, comprised of HELOCs, were converted to term loans during the three and nine months ended September 30, 2025. In comparison, $ 2 million and $ 26 million of total consumer loans, comprised of HELOCs, were converted to term loans during the three and nine months ended September 30, 2024, respectively.
(2) Excludes gross write-offs associated with loans the Company sold or settled.
(3) $ 1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both September 30, 2025 and December 31, 2024.
40

Nonaccrual and Past Due Loans

Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of September 30, 2025 and December 31, 2024:

September 30, 2025
($ in thousands) Current Accruing Loans Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Total Nonaccrual Loans Total Loans
Commercial:
C&I $ 17,920,668   $ 3,949   $ 6,847   $ 10,796   $ 70,065   $ 18,001,529  
CRE:
CRE 15,161,590   33,489   15,520   49,009   20,568   15,231,167  
Multifamily residential 5,036,135   294   548   842   307   5,037,284  
Construction and land 767,690   —   —   —   8,897   776,587  
Total CRE 20,965,415   33,783   16,068   49,851   29,772   21,045,038  
Total commercial 38,886,083   37,732   22,915   60,647   99,837   39,046,567  
Consumer:
Residential mortgage:
Single-family residential 14,729,285   37,066   20,888   57,954   33,672   14,820,911  
HELOCs 1,808,419   14,465   6,172   20,637   23,352   1,852,408  
Total residential mortgage 16,537,704   51,531   27,060   78,591   57,024   16,673,319  
Other consumer 46,718   36   59   95   73   46,886  
Total consumer 16,584,422   51,567   27,119   78,686   57,097   16,720,205  
Total $ 55,470,505   $ 89,299   $ 50,034   $ 139,333   $ 156,934   $ 55,766,772  

December 31, 2024
($ in thousands) Current Accruing Loans Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Total Nonaccrual Loans Total Loans
Commercial:
C&I $ 17,288,138   $ 5,690   $ 17,165   $ 22,855   $ 86,165   $ 17,397,158  
CRE:
CRE 14,647,270   3,755   1,885   5,640   2,430   14,655,340  
Multifamily residential 4,947,939   653   278   931   4,572   4,953,442  
Construction and land 653,919   927   —   927   11,316   666,162  
Total CRE 20,249,128   5,335   2,163   7,498   18,318   20,274,944  
Total commercial 37,537,266   11,025   19,328   30,353   104,483   37,672,102  
Consumer:
Residential mortgage:
Single-family residential 14,088,086   32,841   22,096   54,937   32,423   14,175,446  
HELOCs 1,770,218   11,396   7,968   19,364   22,046   1,811,628  
Total residential mortgage
15,858,304   44,237   30,064   74,301   54,469   15,987,074  
Other consumer 67,288   92   15   107   66   67,461  
Total consumer 15,925,592   44,329   30,079   74,408   54,535   16,054,535  
Total $ 53,462,858   $ 55,354   $ 49,407   $ 104,761   $ 159,018   $ 53,726,637  

41

The following table presents the amortized cost of loans on nonaccrual status for which there was no related ALLL as of both September 30, 2025 and December 31, 2024. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.

($ in thousands) September 30, 2025 December 31, 2024

Commercial:
C&I $ 33,625   $ 79,591  

CRE 19,360   —  
Multifamily residential —   4,210  
Construction and land 8,897   11,316  

Total commercial 61,882   95,117  
Consumer:

Single-family residential 7,195   6,279  
HELOCs 4,797   15,380  

Total consumer 11,992   21,659  
Total nonaccrual loans with no related ALLL
$ 73,874   $ 116,776  

Foreclosed Assets

The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession).

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $ 24 million of foreclosed assets as of September 30, 2025, compared with $ 35  million as of December 31, 2024. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $ 21 million and $ 16 million as of September 30, 2025 and December 31, 2024, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer loan borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure.

42

The following tables present the amortized cost of loans that were modified during the three and nine months ended September 30, 2025 and 2024 by loan class and modification type:

Three Months Ended September 30, 2025

Modification Type
Combination:
($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay
Rate Reduction/ Term Extension
Rate Reduction/ Payment Delay
Total Modification as a % of Loan Class
Commercial:
C&I $ 27,141   $ 49,915   $ —   $ 94   $ —   $ 77,150   0.43   %

CRE 65,118   —   —   —   —   65,118   0.43   %
Total commercial 92,259   49,915   —   94   —   142,268   0.36   %
Consumer:

Single-family residential —   14,351   1,632   —   —   15,983   0.11   %
HELOCs —   4,294   286   —   747   5,327   0.29   %

Total consumer —   18,645   1,918   —   747   21,310   0.13   %
Total $ 92,259   $ 68,560   $ 1,918   $ 94   $ 747   $ 163,578   0.29   %

Three Months Ended September 30, 2024
Modification Type
Combination:
($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay
Rate Reduction/ Payment Delay
Total Modification as a % of Loan Class
Commercial:
C&I $ 15,848   $ —   $ —   $ —   $ 15,848   0.09   %

CRE 23,735   —   —   —   23,735   0.16   %

Total commercial 39,583   —   —   —   39,583   0.11   %
Consumer:

Single-family residential —   4,718   219   141   5,078   0.04   %
HELOCs —   3,763   —   —   3,763   0.21   %

Total consumer —   8,481   219   141   8,841   0.06   %
Total $ 39,583   $ 8,481   $ 219   $ 141   $ 48,424   0.09   %

43

Nine Months Ended September 30, 2025
Modification Type
Combination:

($ in thousands) Interest Rate Reduction Term Extension
Payment Delay Rate Reduction/ Term Extension
Term Extension/ Payment Delay
Rate Reduction/ Payment Delay
Rate Reduction/ Term Extension/ Payment Delay
Total Modification as a % of Loan Class
Commercial:
C&I $ 6,057   $ 76,716   $ 52,889   $ 94   $ 31,957   $ 19,576   $ —   $ 187,289   1.04   %

CRE —   188,145   —   —   —   —   —   188,145   1.24   %
Multifamily —   276   —   —   —   —   —   276   0.01   %
Land and construction —   16,782   —   —   —   —   —   16,782   2.16   %

Total commercial 6,057   281,919   52,889   94   31,957   19,576   —   392,492   1.01   %
Consumer:

Single-family residential —   —   23,226   —   1,928   —   —   25,154   0.17   %
HELOCs —   —   9,210   —   917   1,173   414   11,714   0.63   %

Total consumer —   —   32,436   —   2,845   1,173   414   36,868   0.22   %
Total $ 6,057   $ 281,919   $ 85,325   $ 94   $ 34,802   $ 20,749   $ 414   $ 429,360   0.77   %

Nine Months Ended September 30, 2024
Modification Type
Combination:
($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay
Rate Reduction/ Payment Delay
Total Modification as a % of Loan Class
Commercial:
C&I $ 26,191   $ 24,768   $ —   $ —   $ 50,959   0.30   %

CRE 47,969   —   —   —   47,969   0.33   %

Total commercial 74,160   24,768   —   —   98,928   0.26   %
Consumer:

Single-family residential —   13,278   219   141   13,638   0.10   %
HELOCs —   10,708   —   517   11,225   0.64   %

Other consumer 3,000   —   —   —   3,000   5.18   %

Total consumer 3,000   23,986   219   658   27,863   0.18   %
Total $ 77,160   $ 48,754   $ 219   $ 658   $ 126,791   0.24   %

44

The following table presents the financial effects of the loan modifications for the three and nine months ended September 30, 2025 and 2024 by loan class and modification type:

Financial Effects of Loan Modifications for the Three Months Ended September 30,
2025 2024
($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay (in years) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay (in years)
Commercial:
C&I 1.00   % 1.3 0.7 —   % 0.8 0.0

CRE —   % 1.3 0.0 —   % 3.3 0.0

Consumer:
Residential mortgage:
Single-family residential —   % 17.5 4.6 1.63   % 10.0 2.6
HELOCs 1.50   % 20.0 6.6 —   % 0.0 0.6

Financial Effects of Loan Modifications for the Nine Months Ended September 30,

2025 2024
($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay (in years) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay (in years)
Commercial:
C&I 3.37   % 1.1 0.8 —   % 1.6 1.6

CRE —   % 3.0 0.0 —   % 2.4 0.0
Multifamily —   % 10.0 0.0 —   % 0.0 0.0
Land and construction —   % 0.8 0.0 —   % 0.0 0.0

Consumer:

Single-family residential —   % 16.3 3.6 1.63   % 10.0 1.4
HELOCs 0.97   % 15.3 6.8 0.25   % 0.0 2.0

Other consumer —   % 0.0 0.0 —   % 0.8 0.0

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. The following tables present the amortized cost basis of modified loans that, within 12 months of the modification date, experienced a subsequent default during the three and nine months ended September 30, 2025 and 2024.

Loans Modified Subsequently Defaulted During the Three Months Ended September 30, 2025

($ in thousands) Term Extension Payment Delay Combination: Rate Reduction/ Payment Delay
Combination: Term Extension/ Payment Delay Total
Commercial:
C&I $ 890   $ 3,089   $ —   $ —   $ 3,979  

Total commercial 890   3,089   —   —   3,979  
Consumer:

Single-family residential —   1,064   —   819   1,883  
HELOCs —   418   747   202   1,367  

Total consumer —   1,482   747   1,021   3,250  
Total $ 890   $ 4,571   $ 747   $ 1,021   $ 7,229  

45

Loans Modified Subsequently Defaulted During the Three Months Ended September 30, 2024

($ in thousands) Term Extension Payment Delay Combination: Rate Reduction/ Payment Delay Combination: Term Extension/ Payment Delay Total

Consumer:

Single-family residential $ —   $ 573   $ —   $ —   $ 573  
HELOCs —   2,762   —   —   2,762  

Total consumer —   3,335   —   —   3,335  
Total $ —   $ 3,335   $ —   $ —   $ 3,335  

Loans Modified Subsequently Defaulted During the Nine Months Ended September 30, 2025

($ in thousands) Term Extension Payment Delay Combination: Rate Reduction/ Payment Delay Combination: Term Extension/ Payment Delay Total
Commercial:
C&I $ 890   $ 7,554   $ —   $ —   $ 8,444  

CRE 53,277   —   —   —   53,277  

Total commercial 54,167   7,554   —   —   61,721  
Consumer:

Single-family residential —   2,515   —   1,026   3,541  
HELOCs —   4,675   747   488   5,910  

Total consumer —   7,190   747   1,514   9,451  
Total $ 54,167   $ 14,744   $ 747   $ 1,514   $ 71,172  

Loans Modified Subsequently Defaulted During the Nine Months Ended September 30, 2024

($ in thousands) Term Extension Payment Delay Combination: Rate Reduction/ Payment Delay Combination: Term Extension/ Payment Delay Total
Commercial:
C&I $ 7,829   $ 5,280   $ —   $ —   $ 13,109  

Total commercial 7,829   5,280   —   —   13,109  
Consumer:

Single-family residential —   7,995   141   2,828   10,964  
HELOCs —   3,240   1,149   —   4,389  

Total consumer —   11,235   1,290   2,828   15,353  
Total $ 7,829   $ 16,515   $ 1,290   $ 2,828   $ 28,462  

46

The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables present the performance of loans that were modified over the last 12 months as of September 30, 2025 and 2024:

Payment Performance as of September 30, 2025

($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total
Commercial:
C&I $ 217,395   $ 94   $ 890   $ 218,379  

CRE 210,658   —   —   210,658  
Multifamily residential 276   —   —   276  
Construction and land 16,782   —   —   16,782  

Total commercial 445,111   94   890   446,095  
Consumer:

Single-family residential 22,866   2,201   1,738   26,805  
HELOCs 9,533   1,594   1,842   12,969  

Total consumer 32,399   3,795   3,580   39,774  
Total $ 477,510   $ 3,889   $ 4,470   $ 485,869  

Payment Performance as of September 30, 2024

($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total
Commercial:
C&I $ 62,107   $ 8,848   $ 7,828   $ 78,783  

CRE 47,969   —   —   47,969  

Total commercial 110,076   8,848   7,828   126,752  
Consumer:

Single-family residential 9,610   3,237   6,686   19,533  
HELOCs 8,922   3,736   1,270   13,928  

Other consumer —   3,000   —   3,000  
Total consumer 18,532   9,973   7,956   36,461  
Total $ 128,608   $ 18,821   $ 15,784   $ 163,213  

As of September 30, 2025 and December 31, 2024, commitments to lend additional funds to borrowers whose loans were modified totaled $ 14 million and $ 10 million, respectively.

Allowance for Credit Losses

The Company has a current expected credit losses framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the ALLL and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense.

47

The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

ALLL for Collectively Evaluated Loans

The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below.

Quantitative Component — The Company applies quantitative methods to estimate ALLL by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the ALLL.

There were no changes to the reasonable and supportable forecast period and reversion to the historical loss experience method for the three and nine months ended September 30, 2025 and 2024.

The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:

Portfolio Segment Risk Characteristics Macroeconomic Variables
C&I Age percentage, size at origination, delinquency status, sector and risk rating Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates

CRE, Multifamily residential, and Construction and land
Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, GDP, and U.S. Treasury rates
Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and Home Price Indices
Other consumer Loss rate approach Immaterial - Macroeconomic variables are included in the qualitative estimate.

Quantitative Component — ALLL for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate.

To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

48

Quantitative Component — ALLL for the Consumer Loan Portfolio

For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the single-family residential and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach.

Qualitative Component — The Company considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to:

• loan growth trends;
• the volume and severity of past due financial assets, and criticized or adversely classified financial assets;
• the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;
• knowledge of a borrower’s operations;
• the quality of the Company’s credit review system;
• the experience, ability and depth of the Company’s management and associates;
• the effect of other external factors such as the regulatory and legal environments, or changes in technology;
• actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and
• risk factors in certain industry sectors not captured by the quantitative models.

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

ALLL for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the ALLL on an individual loan basis. The ALLL for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan.

• Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of September 30, 2025, collateral-dependent commercial and consumer loans totaled $ 39 million and $ 14 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $ 45 million and $ 23 million, respectively, as of December 31, 2024. The Company's collateral-dependent loans were secured by real estate. As of both September 30, 2025 and December 31, 2024, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.
49

The following tables summarize the activity in the ALLL by portfolio segments for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land
Single-Family Residential HELOCs Other Consumer Total
ALLL, beginning of period
$ 442,291   $ 212,618   $ 29,073   $ 17,856   $ 51,997   $ 5,256   $ 1,325   $ 760,416  
Allowance recognized on purchased credit-deteriorated (“PCD”) loans
18,175   —   —   —   —   —   —   18,175  
(Reversal of) provision for credit losses on loans
(a) ( 992 ) 14,552   6,101   671   8,873   854   ( 143 ) 29,916  
Gross charge-offs ( 25,325 ) ( 5 ) —   —   —   —   ( 73 ) ( 25,403 )
Gross recoveries 7,236   2   13   3   6   3   —   7,263  
Total net (charge-offs) recoveries
( 18,089 ) ( 3 ) 13   3   6   3   ( 73 ) ( 18,140 )
Foreign currency translation adjustment 153   —   —   —   —   —   —   153  
ALLL, end of period
$ 441,538   $ 227,167   $ 35,187   $ 18,530   $ 60,876   $ 6,113   $ 1,109   $ 790,520  

Three Months Ended September 30, 2024
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total

ALLL, beginning of period
$ 379,984   $ 194,794   $ 40,254   $ 14,322   $ 49,523   $ 3,340   $ 1,577   $ 683,794  
Provision for (reversal of) credit losses on loans (a) 26,416   27,123   ( 8,493 ) ( 1,975 ) ( 1,293 ) ( 128 ) 67   41,717  
Gross charge-offs ( 29,260 ) ( 734 ) —   ( 145 ) —   ( 10 ) ( 149 ) ( 30,298 )
Gross recoveries 838   61   21   6   1   8   —   935  
Total net (charge-offs) recoveries ( 28,422 ) ( 673 ) 21   ( 139 ) 1   ( 2 ) ( 149 ) ( 29,363 )
Foreign currency translation adjustment 337   —   —   —   —   —   —   337  
ALLL, end of period
$ 378,315   $ 221,244   $ 31,782   $ 12,208   $ 48,231   $ 3,210   $ 1,495   $ 696,485  

Nine Months Ended September 30, 2025
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total
ALLL, beginning of period
$ 384,319   $ 218,677   $ 32,117   $ 17,497   $ 44,816   $ 3,132   $ 1,494   $ 702,052  
Allowance recognized on PCD loans
18,175   —   —   —   —   —   —   18,175  
Provision for (reversal of) credit losses on loans (a) 62,973   30,664   3,028   3,020   16,009   2,962   ( 522 ) 118,134  
Gross charge-offs ( 34,464 ) ( 22,248 ) ( 7 ) ( 1,996 ) ( 9 ) —   ( 126 ) ( 58,850 )
Gross recoveries 10,304   74   49   9   60   19   263   10,778  
Total net (charge-offs) recoveries ( 24,160 ) ( 22,174 ) 42   ( 1,987 ) 51   19   137   ( 48,072 )
Foreign currency translation adjustment 231   —   —   —   —   —   —   231  
ALLL, end of period
$ 441,538   $ 227,167   $ 35,187   $ 18,530   $ 60,876   $ 6,113   $ 1,109   $ 790,520  

50

Nine Months Ended September 30, 2024
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total

ALLL, beginning of period
$ 392,685   $ 170,592   $ 34,375   $ 10,469   $ 55,018   $ 3,947   $ 1,657   $ 668,743  
Provision for (reversal of) credit losses on loans (a) 44,473   64,542   ( 2,833 ) 3,828   ( 6,760 ) ( 792 ) 175   102,633  
Gross charge-offs ( 63,392 ) ( 14,235 ) ( 6 ) ( 2,289 ) ( 35 ) ( 10 ) ( 337 ) ( 80,304 )
Gross recoveries 4,365   345   246   200   8   65   —   5,229  
Total net (charge-offs) recoveries ( 59,027 ) ( 13,890 ) 240   ( 2,089 ) ( 27 ) 55   ( 337 ) ( 75,075 )
Foreign currency translation adjustment 184   —   —   —   —   —   —   184  
ALLL, end of period
$ 378,315   $ 221,244   $ 31,782   $ 12,208   $ 48,231   $ 3,210   $ 1,495   $ 696,485  

In addition to the ALLL, the Company maintains an allowance for unfunded credit commitments. The Company has three general areas for which it provides the allowance for unfunded credit commitments: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 10 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period $ 45,307   $ 38,783   $ 39,526   $ 37,698  

Provision for credit losses on unfunded credit commitments (b) 3,084   283   8,866   1,367  
Foreign currency translation adjustment ( 1 ) ( 4 ) ( 2 ) ( 3 )
Allowance for unfunded credit commitments, end of period $ 48,390   $ 39,062   $ 48,390   $ 39,062  

Provision for credit losses on loans, leases and unfunded credit commitments
(a) + (b) $ 33,000   $ 42,000   $ 127,000   $ 104,000  

The allowance for credit losses was $ 839 million as of September 30, 2025, an increase of $ 97  million, compared with $ 742 million as of December 31, 2024. The increase in the allowance for credit losses was primarily driven by the Company’s net loan and commitment growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and potential impacts from the escalating tariff and global trade tensions.

51

The Company considers multiple economic scenarios to develop the estimate of the ALLL. The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions. As of September 30, 2025, the Company assigned a slightly lower weighting to its upside scenario, while applying a slightly higher weighting to the downside scenario, with baseline remaining the same as compared with December 31, 2024. The current baseline economic forecast continues to reflect key risks such as still-elevated interest rates, inflation exacerbated by higher tariffs, and slowing job growth. Compared with December 2024, the September 2025 baseline forecast for GDP growth is projected to be weaker in the near-term for the remainder of 2025 and into 2026. Similarly, the near- and mid-term unemployment rates have increased in the September 2025 forecast reflecting the uncertainty which businesses and households are facing. The downside scenario assumed the economy falls into recession in the fourth quarter of 2025 as a result of tariffs, deportations, rising inflation, elevated interest rates, global and domestic political tensions, and reduced credit availability. The upside scenario assumed a more optimistic economic outlook, including stronger growth, stable financial markets, unemployment declining below baseline starting in the fourth quarter of 2025, and diminished global political and economic tension.

Loan Transfers, Sales and Purchases

The Company’s primary business focus is on directly originated loans. The Company also purchases loans from and participates in loan financing with other banks. In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to ALLL are recorded, when appropriate. The following tables provide information on the carrying value of loans transferred, sold and purchased, during the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, 2025
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Construction and Land Single-Family Residential Total
Loans transferred from held-for-investment to held-for-sale (1)
$ 134,916   $ —   $ —   $ —   $ 134,916  

Sales (2)(3)
$ 127,489   $ —   $ —   $ —   $ 127,489  
Purchases $ 34,677   (4)
$ —   $ —   $ 121,968   $ 156,645  

Three Months Ended September 30, 2024
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Construction and Land
Single-Family Residential Total
Loans transferred from held-for-investment to held-for-sale (1)
$ 307,182   $ —   $ —   $ —   $ 307,182  

Sales (2)(3)
$ 326,764   $ —   $ —   $ 1,642   $ 328,406  
Purchases $ 247,880   (4)
$ —   $ —   $ 102,666   $ 350,546  

Nine Months Ended September 30, 2025
Commercial Consumer Total
CRE Residential Mortgage
($ in thousands) C&I CRE Construction and Land
Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)
$ 240,613   $ 20,338   $ 9,500   $ —   $ 270,451  

Sales (2)(3)
$ 224,186   $ 20,338   $ 11,316   $ 396   $ 256,236  
Purchases $ 339,321   (4)
$ —   $ —   $ 372,379   $ 711,700  

Refer to table footnotes on the following page.
52

Nine Months Ended September 30, 2024
Commercial Consumer Total
CRE Residential Mortgage
($ in thousands) C&I CRE Construction and Land Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)
$ 646,079   $ —   $ 718   $ —   $ 646,797  

Sales (2)(3)
$ 647,873   $ —   $ 718   $ 2,607   $ 651,198  
Purchases $ 451,399   (4)
$ —   $ —   $ 289,266   $ 740,665  

(1) Includes write-downs of $ 2 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the nine months ended September 30, 2025, and $ 1 million and $ 2 million for the three and nine months ended September 30, 2024, respectively.
(2) Includes originated loans sold of $ 37 million and $ 159 million for the three and nine months ended September 30, 2025, respectively, and $ 309 million and $ 496 million for the three and nine months ended September 30, 2024, respectively. Originated loans sold were primarily comprised of C&I loans for each of the three and nine months ended September 30, 2025 and 2024.
(3) Includes $ 90 million and $ 97 million of purchased loans sold in the secondary market for the three and nine months ended September 30, 2025, and $ 20 million and $ 156 million for the three and nine months ended September 30, 2024, respectively.
(4) C&I loan purchases were comprised of syndicated C&I term loans.

Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net

The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the affordable housing regulatory requirements for a 15-year minimum compliance period. The Company also invests in small business investment companies and new markets tax credit projects that qualify for CRA consideration, as well as eligible projects that qualify for production, historic and renewable energy tax credits. Investments in new markets tax credits promote development in low-income communities; investments in production and renewable energy tax credits help promote the development of renewable energy sources; and investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas.

The majority of affordable housing partnership, tax credit and CRA investments discussed above are variable interest entities where the Company is a limited partner in these investments, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these investments due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture.

The Company elects to account for its tax credit investments using the proportional amortization method (“PAM”) on a program-by-program basis if certain conditions are met. For the Company’s accounting policies on PAM, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Income Taxes to the Consolidated Financial Statements in the Company’s 2024 Form 10-K. For discussion on the Company’s impairment evaluation and monitoring process for tax credit investments, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments — Affordable Housing Partnership, Tax Credit and CRA Investments, Net to the Consolidated Financial Statements in this Form 10-Q.

53

The following table presents the investments and unfunded commitments of the Company’s affordable housing partnership, tax credit, and CRA investments, net as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
($ in thousands) Assets Liabilities - Unfunded Commitments (1)
Assets
Liabilities - Unfunded Commitments (1)

PAM:
Affordable housing partnership investments $ 476,731   $ 178,953   $ 500,217   $ 280,919  
Tax credit and CRA investments 145,876   58,090   160,429   21,202  
Equity method of accounting and other:
Tax credits and CRA investments 359,640   (2)
143,816   265,994   (2)
105,743  
Total $ 982,247   $ 380,859   $ 926,640   $ 407,864  

(1) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.
(2) Includes $ 37 million and $ 29 million of equity securities without readily determinable fair values as of September 30, 2025 and December 31, 2024, respectively.

The following table presents additional information related to the investments in affordable housing partnership, tax credit and CRA investments for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
Tax credits and benefits (1) :

PAM:
Affordable housing partnership investments $ 19,493   $ 17,352   $ 60,101   $ 51,383  
Tax credit and CRA investments 30,780   27,321   88,527   80,774  
Equity method of accounting and other:
Tax credit and CRA investments 23,810   14,918   60,911   49,055  
Total tax credits and benefits $ 74,083   $ 59,591   $ 209,539   $ 181,212  

Amortization:
PAM (2) :

Affordable housing partnership investments $ 15,276   $ 11,245   $ 46,110   $ 34,888  
Tax credit and CRA investments 22,126   21,819   67,296   65,135  
Equity method of accounting and other:
Tax credit and CRA investments (3)
15,693   5,600   57,671   34,859  
Total amortization $ 53,095   $ 38,664   $ 171,077   $ 134,882  

(1) Included in Income tax expense on the Consolidated Statement of Income.
(2) For affordable housing partnership, tax credit and CRA investments that are qualified for accounting under PAM, amortization is included in Income tax expense on the Consolidated Statement of Income.
(3) For tax credit and CRA investments that are not accounted for under PAM, amortization is included in Amortization of tax credit and CRA investments as part of Noninterest expense on the Consolidated Statement Income.

The Company also held equity securities without readily determinable fair values totaling $ 117 million and $ 118 million included in Other Assets on the Consolidated Balance Sheet, as of September 30, 2025 and December 31, 2024, respectively .

54

Note 8 — Goodwill

Total goodwill was $ 466 million as of both September 30, 2025 and December 31, 2024. The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Based on the Company’s annual goodwill impairment test as of December 31, 2024, there was no impairment. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Goodwill to the Consolidated Financial Statements in the Company’s 2024 Form 10-K. The Company performed an analysis of goodwill during the third quarter of 2025 using a qualitative assessment to determine if it was more likely than not that the carrying values of each reporting unit exceeded their estimated fair values. The results of this analysis indicated that no impairment of goodwill existed as of September 30, 2025.

As of September 30, 2025, the Company held an equity method investment totaling $ 108  million, of which $ 101  million was comprised of equity method goodwill.

Note 9 — Federal Home Loan Bank Advances and Long-Term Debt

The following table presents details of the Company’s FHLB advances and long-term debt as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
($ in thousands) Interest Rates Maturity Dates Amount Amount

Parent company
Junior subordinated debt — floating (1)
  5.85 %
12/15/2035 $ 32,239   $ 32,001  
Bank

FHLB advances (2) :

Floating (3)
4.29 % — 4.38 %
2026 $ 2,000,000   $ 3,000,000  
Fixed
3.87 % — 4.49 %
2025 — 2026 1,000,000   500,000  
Total FHLB advances
$ 3,000,000   $ 3,500,000  

(1) As of September 30, 2025, the outstanding junior subordinated debt was issued by MCBI Statutory Trust I and had a stated interest of 3-month CME Term Secured Overnight Financing Rate (“SOFR”) + 1.81 %. The contractual interest rates for junior subordinated debt were 5.85 % and 6.17 % as of September 30, 2025 and December 31, 2024, respectively.
(2) The weighted-average interest rates for FHLB advances were 4.30 % and 4.48 % as of September 30, 2025 and December 31, 2024, respectively.
(3) Floating interest rates are based on the SOFR plus the established spread.

The Bank’s available borrowing capacity from FHLB advances totaled $ 11.4  billion as of September 30, 2025. The Bank’s available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB, reduced by any outstanding FHLB advances. As of September 30, 2025, all advances were secured by real estate loans.

Note 10 — Commitments and Contingencies

Commitments to Extend Credit — In the normal course of business, the Company provides loan commitments and letters of credit to customers on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. While the Company does not anticipate losses from these transactions, commitments to extend credit are included in determining the appropriate level of allowance for unfunded credit commitments.

55

The following table presents the Company’s credit-related commitments as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024
($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total
Loan commitments $ 4,947,041   $ 3,735,250   $ 639,101   $ 97,652   $ 9,419,044   $ 9,128,040  
Commercial letters of credit and standby letters of credit (“SBLCs”)
1,413,936   506,597   152,263   1,057,314   3,130,110   2,917,029  
Total $ 6,360,977   $ 4,241,847   $ 791,364   $ 1,154,966   $ 12,549,154   $ 12,045,069  

Loan commitments are agreements to lend to customers provided there are no violations of any conditions established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require commitment fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements.

Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset existing accounts. As of September 30, 2025, total letters of credit of $ 3.1 billion consisted of SBLCs of $ 3.1 billion and commercial letters of credit of $ 23 million. In comparison, as of December 31, 2024, total letters of credit of $ 2.9 billion consisted of SBLCs of $ 2.9 billion and commercial letters of credit of $ 29 million. As of both September 30, 2025 and December 31, 2024, substantially all letters of credit were graded “Pass” using the Bank’s internal credit risk rating system.

The Company applies the same credit underwriting criteria to extend loans, commitments, and conditional obligations to customers. Each customer’s creditworthiness is evaluated on a case-by-case basis. Collateral and financial guarantees may be obtained based on management’s assessment of a customer’s credit risk. Collateral may include cash, accounts receivable, inventory, personal property, plant and equipment, and real estate property.

Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments and amounted to $ 48 million and $ 39 million as of September 30, 2025 and December 31, 2024, respectively.

56

Guarantees — The Company occasionally sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business. The Company is obligated to repurchase up to the recourse component of the loans if the loans default. The following table presents the maximum potential future payments and carrying value of loans sold or securitized with recourse as of September 30, 2025 and December 31, 2024:

Maximum Potential Future Payments Carrying Value (1)

September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024
($ in thousands) Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Total Total
Single-family residential loans sold or securitized with recourse $ 17   $ 339   $ 3,085   $ 3,441   $ 4,375   $ 3,441   $ 4,375  
Multifamily residential loans sold or securitized with recourse 51   78   14,867   14,996   14,996   16,434   17,770  
Total $ 68   $ 417   $ 17,952   $ 18,437   $ 19,371   $ 19,875   $ 22,145  

(1) Represents the unpaid principal balance.

The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $ 28 thousand and $ 34 thousand as of September 30, 2025 and December 31, 2024, respectively. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse.

Litigation — The Company is a party to various legal actions arising in the ordinary course of its business. In accordance with ASC 450, Contingencies, the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more, than the amounts accrued.

While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information known to the Company as of September 30, 2025, the Company does not believe there are any pending legal proceedings to which the Company is a party that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company’s financial condition. In light of the inherent uncertainty in legal proceedings, however, there can be no assurance that the ultimate resolution will not exceed established reserves and it is possible that the outcome of a particular matter, or a combination of matters, may be material to the Company’s financial condition for a particular period, depending upon the size of the loss and the Company’s income for that particular period.

Note 11 — Stock Compensation Plans

Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stock, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of East West and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of both September 30, 2025 and December 31, 2024.

57

The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,
($ in thousands) 2025 2024 2025 2024
Stock compensation costs $ 36,112   $ 10,717   $ 62,592   $ 34,371  
Related net tax benefits for stock compensation plans
$ 216   $ 20   $ 2,947   $ 812  

Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant and are authorized to settle in shares of the Company’s common stock. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of the RSUs are time-based vesting awards, others vest subject to the attainment of additional specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation and Management Development Committee based on the performance in the year prior to the grant date of the award. The number of awards that vest can range from 0 % to a maximum of 200 % of the target number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years . For information on accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements of the Company’s 2024 Form 10-K.

The following table presents a summary of the activities for the Company’s time- and performance-based RSUs that were settled in shares for the nine months ended September 30, 2025. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date.

Time-Based RSUs Performance-Based RSUs
Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value
Outstanding, January 1, 2025
1,348,612   $ 75.70   282,061   $ 79.48  

Granted 466,153   95.09   88,660   95.34  
Vested ( 352,294 ) 78.36   ( 87,992 ) 81.35  
Forfeited ( 98,969 ) 79.97   —   —  
Outstanding, September 30, 2025
1,363,502   $ 81.33   282,729   $ 83.87  

As of September 30, 2025, there was $ 41 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.9 years, and $ 6 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.9 years.

58

Note 12 — Stockholders’ Equity and Earnings Per Share

The following table presents the basic and diluted EPS calculations for the three and nine months ended September 30, 2025 and 2024. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

Three Months Ended September 30, Nine Months Ended September 30,
($ and shares in thousands, except per share data) 2025 2024 2025 2024
Basic:
Net income $ 368,394   $ 299,166   $ 968,917   $ 872,471  
Weighted-average number of shares outstanding 137,676   138,606   137,897   138,997  
Basic EPS $ 2.68   $ 2.16   $ 7.03   $ 6.28  
Diluted:
Net income $ 368,394   $ 299,166   $ 968,917   $ 872,471  

Weighted-average number of shares outstanding 137,676   138,606   137,897   138,997  
Add: Dilutive impact of unvested RSUs 1,266   1,042   1,193   942  
Diluted weighted-average number of shares outstanding 138,942   139,648   139,090   139,939  
Diluted EPS $ 2.65   $ 2.14   $ 6.97   $ 6.23  

Approximately two thousand and nine thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and nine months ended September 30, 2025, respectively. In comparison, approximately one thousand and five thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and nine months ended September 30, 2024, respectively.

Stock Repurchase Program — On January 22, 2025, the Company’s Board of Directors authorized a stock repurchase of $ 300 million of the Company’s common stock. The Company repurchased $ 26 million and $ 114 million of common stock for the three and nine months ended September 30, 2025, respectively. For the three months ended September 30, 2024, there were no share repurchases. For the nine months ended September 30, 2024, the Company repurchased $ 123 million of common stock.

Note 13 — Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in the components of AOCI balances for the three and nine months ended September 30, 2025 and 2024:

($ in thousands) Debt Securities (1)
Cash Flow Hedges Foreign Currency Translation Adjustments (2)
Total
Balance, July 1, 2024 $ ( 591,286 ) $ ( 44,059 ) $ ( 18,828 ) $ ( 654,173 )
Net unrealized gains (losses) arising during the period 132,130   66,105   ( 1,126 ) 197,109  
Amounts reclassified from AOCI 2,663   17,097   —   19,760  
Changes, net of tax 134,793   83,202   ( 1,126 ) 216,869  
Balance, September 30, 2024
$ ( 456,493 ) $ 39,143   $ ( 19,954 ) $ ( 437,304 )

Balance, July 1, 2025 $ ( 466,566 ) $ 28,622   $ ( 24,436 ) $ ( 462,380 )
Net unrealized gains (losses) arising during the period 76,760   ( 2,355 ) 2,074   76,479  
Amounts reclassified from AOCI 6,187   4,157   —   10,344  
Changes, net of tax 82,947   1,802   2,074   86,823  
Balance, September 30, 2025
$ ( 383,619 )

$ 30,424   $ ( 22,362 ) $ ( 375,557 )

Refer to table footnotes on the following page.

59

($ in thousands) Debt Securities (1)
Cash Flow Hedges Foreign Currency Translation Adjustments (2)
Total
Balance, January 1, 2024 $ ( 601,881 ) $ 2,624   $ ( 21,339 ) $ ( 620,596 )
Net unrealized gains (losses) arising during the period 138,621   ( 15,235 ) 1,385   124,771  
Amounts reclassified from AOCI 6,767   51,754   —   58,521  
Changes, net of tax 145,388   36,519   1,385   183,292  
Balance, September 30, 2024
$ ( 456,493 ) $ 39,143   $ ( 19,954 ) $ ( 437,304 )

Balance, January 1, 2025
$ ( 542,152 ) $ ( 20,787 ) $ ( 22,321 ) $ ( 585,260 )
Net unrealized gains (losses) arising during the period 149,063   38,015   ( 41 ) 187,037  
Amounts reclassified from AOCI 9,470   13,196   —   22,666  
Changes, net of tax 158,533   51,211   ( 41 ) 209,703  
Balance, September 30, 2025
$ ( 383,619 ) $ 30,424   $ ( 22,362 ) $ ( 375,557 )

(1) Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.
(2) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30,
2025 2024
($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax
Debt securities:
Net unrealized gains arising during the period $ 98,241   $ ( 21,481 ) $ 76,760   $ 187,578   $ ( 55,448 ) $ 132,130  
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (1)
2,943   ( 858 ) 2,085   ( 145 ) 43   ( 102 )
Amortization of unrealized losses on transferred securities (2)
3,785   317   4,102   3,926   ( 1,161 ) 2,765  
Net change 104,969   ( 22,022 ) 82,947   191,359   ( 56,566 ) 134,793  
Cash flow hedges:
Net unrealized (losses) gains arising during the period
( 2,658 ) 303   ( 2,355 ) 93,842   ( 27,737 ) 66,105  
Net realized losses reclassified into net income (3)
6,001   ( 1,844 ) 4,157   24,272   ( 7,175 ) 17,097  
Net change 3,343   ( 1,541 ) 1,802   118,114   ( 34,912 ) 83,202  
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period
2,208   ( 134 ) 2,074   ( 1,126 ) —   ( 1,126 )
Net change 2,208   ( 134 ) 2,074   ( 1,126 ) —   ( 1,126 )
Other comprehensive income $ 110,520   $ ( 23,697 ) $ 86,823   $ 308,347   $ ( 91,478 ) $ 216,869  

Refer to table footnotes on the following page.

60

Nine Months Ended September 30,
2025 2024
($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax
Debt securities:
Net unrealized gains arising during the period $ 211,737   $ ( 62,674 ) $ 149,063   $ 196,717   $ ( 58,096 ) $ 138,621  
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (1)
2,066   ( 611 ) 1,455   ( 1,979 ) 585   ( 1,394 )
Amortization of unrealized losses on transferred securities (2)
11,379   ( 3,364 ) 8,015   11,587   ( 3,426 ) 8,161  
Net change 225,182   ( 66,649 ) 158,533   206,325   ( 60,937 ) 145,388  
Cash flow hedges:
Net unrealized gains (losses) arising during the period
53,536   ( 15,521 ) 38,015   ( 21,629 ) 6,394   ( 15,235 )
Net realized losses reclassified into net income (3)
18,584   ( 5,388 ) 13,196   73,471   ( 21,717 ) 51,754  
Net change 72,120   ( 20,909 ) 51,211   51,842   ( 15,323 ) 36,519  
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period
( 134 ) 93   ( 41 ) 1,558   ( 173 ) 1,385  
Net change ( 134 ) 93   ( 41 ) 1,558   ( 173 ) 1,385  
Other comprehensive income
$ 297,168   $ ( 87,465 ) $ 209,703   $ 259,725   $ ( 76,433 ) $ 183,292  

(1) Pre-tax amounts were reported in Net gains on AFS debt securities and Provision for Credit Losses on the Consolidated Statement of Income. Refer to Note 4 — Securities — Realized Gains and Credit Losses for further details.
(2) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.
(3) Pre-tax amounts related to cash flow hedges on variable rate loans were reported in Interest and dividend income on the Consolidated Statement of Income.

Note 14 — Business Segments

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. The chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer of the Company. The CODM regularly reviews the Company’s operating results to allocate resources and assess performance. Operating segment results are also based on the Company’s internal management reporting process, which reflects the allocations of certain balance sheet and income statement line items. The CODM uses certain performance measures such as segment net income and considers variances of actual results from forecast results on a quarterly basis when making decisions on resource allocations between segments. The segment information presented is not indicative of how the segments would perform if they operated as independent entities.

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.

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.

61

The remaining 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.

The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The Company’s internal reporting process consists of certain allocation methodologies for revenues and expenses, and the internal funds transfer pricing (“FTP”) process. The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of business segment net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Treasury and Other segment. The corporate treasury function within the Treasury and Other segment is responsible for the Company’s liquidity and interest rate management and manages the corporate interest rate risk exposure. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions.

Each segment’s 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 FTP process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Loan charge-offs and provision for credit losses are recorded to the segments, where the loans are recorded. Significant corporate overhead expenses incurred by centralized support areas in the Treasury and Other segment are allocated to the Consumer and Business Banking and Commercial Banking segments based on the segment’s estimated usage factors including, but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Amortization of tax credit and CRA investments and certain types of administrative expenses are generally not allocated to segments.

The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and nine months ended September 30, 2025 and 2024:

($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other
Total
Three Months Ended September 30, 2025

Net interest income before provision for (reversal of) credit losses
$ 275,389   $ 265,935   $ 136,206   $ 677,530  
Noninterest income 31,191   57,983   11,343   100,517  
Total revenue before provision for (reversal of ) credit losses
306,580   323,918   147,549   778,047  
Provision for (reversal of) credit losses
16,679   35,580   ( 16,259 ) 36,000  
Compensation and employee benefits 60,471   62,282   52,832   175,585  
Other noninterest expense (1)
57,695   36,413   7,230   101,338  
Total noninterest expense 118,166   98,695   60,062   276,923  
Segment income before income taxes
171,735   189,643   103,746   465,124  

Segment net income $ 123,347   $ 136,267   $ 108,780   $ 368,394  
Average balances:
Loans $ 20,500,553   $ 34,408,431   $ 299,594   $ 55,208,578  
Deposits $ 33,883,506   $ 28,027,523   $ 4,278,738   $ 66,189,767  
As of September 30, 2025

Segment assets $ 21,078,748   $ 36,867,668   $ 21,723,115   $ 79,669,531  

62

($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other
Total
Three Months Ended September 30, 2024

Net interest income (loss) before provision for (reversal of) credit losses
$ 290,884   $ 288,704   $ ( 6,866 ) $ 572,722  
Noninterest income 27,970   45,577   10,848   84,395  
Total revenue before provision for (reversal of ) credit losses
318,854   334,281   3,982   657,117  
Provision for (reversal of) credit losses
5,927   36,934   ( 861 ) 42,000  
Compensation and employee benefits 53,865   57,582   24,017   135,464  
Other noninterest expense (1)
58,141   36,020   ( 3,825 ) 90,336  
Total noninterest expense 112,006   93,602   20,192   225,800  
Segment income (loss) before income taxes 200,921   203,745   ( 15,349 ) 389,317  

Segment net income
$ 141,532   $ 143,218   $ 14,416   $ 299,166  
Average balances:
Loans $ 19,048,831   $ 32,975,235   $ 396,450   $ 52,420,516  
Deposits $ 31,462,739   $ 26,310,972   $ 2,811,545   $ 60,585,256  
As of September 30, 2024

Segment assets $ 19,650,183   $ 35,714,691   $ 19,118,846   $ 74,483,720  

($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other
Total
Nine Months Ended September 30, 2025

Net interest income before provision for (reversal of) credit losses
$ 818,195   $ 773,080   $ 303,530   $ 1,894,805  
Noninterest income 91,205   161,313   26,279   278,797  
Total revenue before provision for (reversal of ) credit losses
909,400   934,393   329,809   2,173,602  
Provision for (reversal of) credit losses
31,139   115,083   ( 16,222 ) 130,000  
Compensation and employee benefits 180,585   181,061   105,215   466,861  
Other noninterest expense (1)
172,140   114,784   31,306   318,230  
Total noninterest expense 352,725   295,845   136,521   785,091  
Segment income before income taxes
525,536   523,465   209,510   1,258,511  

Segment net income $ 374,730   $ 373,499   $ 220,688   $ 968,917  
Average balances:
Loans $ 20,151,497   $ 33,800,162   $ 331,101   $ 54,282,760  
Deposits $ 32,992,699   $ 26,832,722   $ 4,355,985   $ 64,181,406  
As of September 30, 2025

Segment assets $ 21,078,748   $ 36,867,668   $ 21,723,115   $ 79,669,531  

63

($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other
Total
Nine Months Ended September 30, 2024

Net interest income (loss) before provision for (reversal of) credit losses
$ 880,316   $ 855,607   $ ( 44,833 ) $ 1,691,090  
Noninterest income 80,288   141,634   25,131   247,053  
Total revenue (loss) before provision for (reversal of) credit losses
960,604   997,241   ( 19,702 ) 1,938,143  
Provision for (reversal of) credit losses
5,246   99,996   ( 1,242 ) 104,000  
Compensation and employee benefits 161,557   175,881   73,426   410,864  
Other noninterest expense (1)
176,279   120,371   592   297,242  
Total noninterest expense 337,836   296,252   74,018   708,106  
Segment income (loss) before income taxes 617,522   600,993   ( 92,478 ) 1,126,037  

Segment net income
$ 434,992   $ 423,407   $ 14,072   $ 872,471  
Average balances:
Loans $ 18,817,573   $ 32,854,843   $ 416,845   $ 52,089,261  
Deposits $ 30,406,431   $ 25,667,059   $ 2,835,470   $ 58,908,960  
As of September 30, 2024

Segment assets $ 19,650,183   $ 35,714,691   $ 19,118,846   $ 74,483,720  

(1) The Consumer and Business Banking segment's other noninterest expense is primarily comprised of corporate overhead allocated expenses, occupancy and equipment expense, and other operating expenses. The Commercial Banking segment’s other noninterest expense is primarily comprised of corporate overhead allocated expenses, deposit account expense, and other operating expenses. The Treasury and Other segment's other noninterest expense is primarily comprised of amortization of tax credit and CRA investments, and other operating expenses, net of any corporate overhead expenses allocated to other segments.
64

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Page
Overview
66

Financial Review
68

Results of Operations
70

Net Interest Income
70

Noninterest Income
76

Noninterest Expense
77

Income Taxes
78

Operating Segment Results
78

Balance Sheet Analysis
83

Debt Securities
83

Loan Portfolio
85

Foreign Outstandings
90

Deposits
91

Capital
92

Regulatory Capital and Ratios
93

Risk Management
93

Credit Risk Management
94

Liquidity Risk Management
97

Market Risk Management
100

Critical Accounting Policies and Estimates
105

Reconciliation of GAAP to Non-GAAP Financial Measures
106

65

Overview

The following discussion provides information about the results of operations, financial condition, liquidity and capital resources of East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) and its subsidiaries, including its subsidiary bank, East West Bank and its subsidiaries (referred to herein as “East West Bank” or the “Bank”). This information is intended to facilitate the understanding and assessment of significant changes and trends related to the Company’s results of operations and financial condition. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the accompanying notes presented elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), and the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 28, 2025 (the “Company’s 2024 Form 10-K”).

Organization and Strategy

East West is a bank holding company incorporated in Delaware on August 26, 1998, and is registered under the Bank Holding Company Act of 1956, as amended. The Company commenced business on December 30, 1998 when, pursuant to a reorganization, it acquired all of the voting stock of the Bank, which became its principal asset. The Bank is an independent commercial bank headquartered in California that focuses on the financial service needs of individuals and businesses that operate in both the U.S. and Asia. Through over 110 locations in the U.S. and Asia, the Company provides a full range of consumer and commercial products and services through the following three business segments: (1) Consumer and Business Banking and (2) Commercial Banking, with the remaining operations recorded in (3) Treasury and Other . The Company’s principal activity is lending to and accepting deposits from businesses and individuals. We are committed to enhancing long-term shareholder value by growing loans, deposits and revenue, improving profitability, and investing for the future while managing risks, expenses and capital. Our business model is built on customer loyalty and engagement, understanding our customers’ financial goals, and meeting our customers’ financial needs through our diverse products and services. We expect our relationship-focused business model to continue generating organic growth from existing customers and to expand our targeted customer bases. As of September 30, 2025, the Company had $79.7 billion in total assets and approximately 3,100 full-time equivalent employees. For additional information on our strategy, and the products and services provided by the Bank, see Item 1. Business — Organization and Banking Services in the Company’s 2024 Form 10-K.

Current Developments

Economic Developments

Evolving trade policies and tariffs, and the government shutdown in late 2025 have increased concerns about inflation, supply chain disruptions, and slower economic growth. The F ederal Reserve resumed lowering interest rates in September 2025, and signaled a cautious approach to further cuts as it monitors inflation and labor market conditions. The economic uncertainty caused by these factors could result in decreased consumer spending and curb business investments. The Company monitors changes in economic and industry conditions and their impacts on the Company’s business, customers, employees, communities and markets.

Further discussion of the potential impacts on the Company’s business due to the economic environment has been provided in Item 1A. — Risk Factors — Risks Related to Geopolitical Uncertainties and — Risks Related to Financial Matters in the Company’s 2024 Form 10-K.

Climate Accountability

In October 2023, California Senate Bill No. 253, the Climate Corporate Data Accountability Act (“SB 253”) and Senate Bill No. 261, the Climate-Related Financial Risk Act (“SB 261”) were signed into law. SB 253 requires companies with annual revenues exceeding $1 billion that do business in California to report their Scope 1 and 2 greenhouse gas (“GHG”) emissions annually starting in 2026; and Scope 3 GHG emissions starting in 2027. SB 261 applies to companies with annual revenues over $500 million that do business in California, and requires disclosure of climate-related financial risks and mitigation measures taken to address such risks with the first report due on January 1, 2026, and biennially thereafter. The Company is a reporting entity under both SB 253 and SB 261 and has engaged a third-party firm to support compliance with these laws. The Company continues to monitor regulatory developments and believes it is well-positioned to meet the applicable requirements.
66

Resolution Planning

On June 20, 2024, the Federal Deposit Insurance Corporation (“FDIC”) released a final rule that requires covered insured depository institutions (“IDIs”) to develop and submit detailed plans demonstrating how they could be resolved in an orderly and timely manner in the event of receivership. IDIs with total assets of $100 billion or more are required to submit full resolution plans, and IDIs with total assets between $50 billion and $100 billion, including the Bank, are required to submit more limited informational filings. The Bank completed and submitted its resolution plan on October 1, 2025. Going forward, the Bank will submit informational filings every three years and interim supplements annually.

Regulatory Updates

On October 22, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule to implement Section 1033 of the Dodd-Frank Act. Under the final rule, financial institutions are required, upon request, to make available to a consumer or third party authorized by the consumer, certain information the Bank has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court. On August 22, 2025, the CFPB issued an advance notice of proposed rulemaking to solicit comments and data on several issues as part of a reconsideration of the final rule. On October 29, 2025, a district court issued a preliminary injunction preventing the CFPB from enforcing the final rule until the CFPB has completed its reconsideration of the rule.

On October 24, 2023, the federal banking agencies issued a final rule amending their regulations implementing the Community Reinvestment Act (“CRA”) to substantially revise how they evaluate an insured depository institution’s record of satisfying the credit needs of its entire communities, including low- and moderate-income individuals and neighborhoods. On July 16, 2025, the agencies issued a notice of proposed rulemaking to rescind the October 2023 final rule and restore the CRA framework that existed previously, which has remained in effect due to a preliminary injunction that stayed implementation of the October 2023 rule. The Bank received a rating of “Outstanding” in its most recent performance evaluation, which was conducted using the CRA framework that existed prior to the October 2023 final rule.

Other Legislative Updates

In July 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law, introducing significant tax changes. The OBBBA extends or makes permanent various tax provisions that were originally enacted in the 2017 Tax Cuts and Jobs Act and were set to expire at the end of this year. The OBBBA features modified versions of individual and business tax relief proposals, and other new tax relief measures. In addition, it includes various revenue-raising measures, including changes to certain Inflation Reduction Act clean energy tax credits and various limits on business and individual tax deductions, that are intended to offset part of the cost of the legislation. The Company is currently evaluating the impact of the OBBBA on its business and consolidated financial statements.

In July 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the “GENIUS Act,” was signed into law, establishing a federal licensing and supervisory framework for payment stablecoins and their issuers. The GENIUS Act may accelerate and increase the competition that non-traditional financial institutions pose to banks’ payment services, but may also create opportunities for banks to hold stablecoin reserve assets, custody stablecoins, or issue stablecoins. Several key provisions of the GENIUS Act require federal regulatory agencies to adopt implementing regulations, and the Act will take effect the earlier of 18 months after its enactment or 120 days after the agencies issue final implementing regulations.

In June 2025, California enacted Senate Bill No. 132 (“SB 132”), requiring banks and financial institutions to adopt a single sales factor for income apportionment, effective for tax years beginning on or after January 1, 2025. Prior to SB 132, financial institutions had been required to use an equally weighted three-factor apportionment formula, which considered property, payroll and sales equally in apportioning income for California tax purposes. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Income Taxes for more details .

67

Financial Review

Three Months Ended September 30, Nine Months Ended September 30,
($ and shares in thousands, except per share, and ratio data) 2025 2024 2025 2024
Summary of operations:
Net interest income before provision for credit losses $ 677,530  $ 572,722  $ 1,894,805  $ 1,691,090 
Noninterest income 100,517  84,395  278,797  247,053 
Total revenue 778,047  657,117  2,173,602  1,938,143 
Provision for credit losses 36,000  42,000  130,000  104,000 

Noninterest expense 276,923  225,800  785,091  708,106 
Income before income taxes 465,124  389,317  1,258,511  1,126,037 
Income tax expense 96,730  90,151  289,594  253,566 

Net income $ 368,394  $ 299,166  $ 968,917  $ 872,471 

Per share:
Basic earnings $ 2.68  $ 2.16  $ 7.03  $ 6.28 
Diluted earnings $ 2.65  $ 2.14  $ 6.97  $ 6.23 

Dividends declared $ 0.60  $ 0.55  $ 1.80  $ 1.65 

Weighted-average number of shares outstanding:
Basic 137,676  138,606  137,897  138,997 
Diluted 138,942  139,648  139,090  139,939 

Performance metrics:
Return on average assets (“ROA”)
1.84  % 1.62  % 1.68  % 1.62  %
Return on average common equity (“ROAE”)
17.44  % 15.99  % 15.98  % 16.24  %
Return on average tangible common equity (“ROATCE”) (1)
18.48  % 17.08  % 16.97  % 17.40  %

Common dividend payout ratio 22.73  % 25.82  % 25.96  % 26.66  %
Net interest margin 3.53  % 3.24  % 3.41  % 3.28  %
Adjusted net interest margin (1)
3.36  % 3.24  % 3.35  % 3.28  %
Efficiency ratio (2)
35.59  % 34.36  % 36.12  % 36.54  %

At period end: September 30, 2025 December 31, 2024
Total assets $ 79,669,531  $ 75,976,475 
Total loans $ 55,786,368  $ 53,726,637 
Total deposits $ 66,587,556  $ 63,175,023 
Common shares outstanding at period-end 137,568  138,437 
Book value per share $ 62.39  $ 55.79 
Tangible book value per share (1)
$ 58.97  $ 52.39 

(1) For additional information regarding the reconciliation of these non-U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, refer to Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.
(2) Efficiency ratio is calculated as noninterest expense divided by total revenue.

68

The Company’s net income for the third quarter and first nine months of 2025 was $368 million and $969 million, respectively, which increased $69 million or 23%, and $96 million or 11%, respectively, from the same prior year periods. The year-over-year increases of both the third quarter and first nine months of 2025 were primarily driven by higher net interest income before provision for credit losses and increased noninterest income, partially offset by higher noninterest expense and income tax expense. Provision for credit losses was higher in the first nine months of 2025, compared with the same prior year period. Noteworthy aspects of the Company’s performance for the third quarter and first nine months of 2025 included:

• Net interest income and net interest margin . Third quarter 2025 net interest income before provision for credit losses of $678 million increased $105 million or 18% from the third quarter of 2024. Third quarter 2025 net interest margin of 3.53% increased 29 bps year-over-year. Net interest income before provision for credit losses was $1.9 billion for the first nine months of 2025, a $204 million or 12% increase year-over-year. Net interest margin for the first nine months of 2025 was 3.41%, up 13 bps year-over-year. The year-over-year increases in net interest income and net interest margin primarily reflect loan growth, AFS securities’ increase, and the impact of $32 million of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans.

• Earnings per share growth. Third quarter 2025 basic and diluted earnings per share (“EPS”) both increased 24% to $2.68 and $2.65, respectively, from the third quarter of 2024. For the first nine months of 2025 basic and diluted EPS both increased 12% to $7.03 and $6.97, respectively, from the first nine months of 2024.

• Profitability ratios. Third quarter 2025 ROA, ROAE and the ROATCE of 1.84%, 17.44% and 18.48%, respectively, were up year-over-year by 22 bps, 145 bps and 140 bps, respectively. For the first nine months of 2025, ROA of 1.68% expanded 6 bps year-over-year. For the first nine months of 2025, ROAE and ROATCE of 15.98% and 16.97%, respectively, were down year-over year by 26 bps and 43 bps, respectively. ROATCE is a non-GAAP financial measure. For additional information regarding the reconciliation of non-GAAP financial measures, refer to Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

• Efficiency ratios. Third quarter 2025 efficiency ratio was 35.59%, compared with 34.36% for the same period in 2024. The first nine months of 2025 efficiency ratio of 36.12% improved 42 bps from 36.54% from the same period in 2024.

• Asset growth. Total assets reached $79.7 billion as of September 30, 2025, an increase of $3.7 billion, from December 31, 2024, primarily driven by a $2.0 billion or 4% increase in net loans held-for-investment and a $1.9 billion or 17% increase in available-for-sale (“AFS”) debt securities.

• Deposit growth. Total deposits were $66.6 billion as of September 30, 2025, an increase of $3.4 billion or 5% from December 31, 2024. The increase was primarily due to increases in time, money market and noninterest-bearing demand deposits.

• Strong capital levels. Stockholders’ equity was $8.6 billion as of September 30, 2025, up $860 million or 11%, from December 31, 2024. Book value per share of $62.39 as of September 30, 2025, increased $6.60 or 12%, compared with December 31, 2024. Tangible book value per share of $58.97 as of September 30, 2025, increased $6.59 or 13%, compared with December 31, 2024. Tangible book value per share is a non-GAAP financial measure. For additional details, see the reconciliation of non-GAAP financial measures presented under Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

69

Results of Operations

Net Interest Income

The Company’s primary source of revenue is net interest income, which is the interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities. Net interest margin is the ratio of net interest income to average interest-earning assets. Net interest income and net interest margin are impacted by several factors, including changes in average balances and the composition of interest-earning assets and funding sources, market interest rate fluctuations and the slope of the yield curve, repricing characteristics and maturity of interest-earning assets and interest-bearing liabilities, the volume of noninterest-bearing sources of funds and asset quality.

Net interest income and net interest margin for the third quarter and first nine months of 2025 increased year-over-year. The net interest income and net interest margin increases in the third quarter of 2025, compared with the same prior year period, primarily reflected lower deposit funding costs, and increases in loans and AFS debt securities, partially offset by lower yields on loans and interest-bearing cash and deposits with banks. The net interest income and net interest margin increases in the first nine months of 2025, compared with the same prior year period, primarily reflected an increase in AFS debt securities, lower deposit funding costs, and a decrease in Bank Term Funding Program (“BTFP”) and short-term borrowings, partially offset by a decrease in the yields and balances of interest-bearing cash and deposits with banks. The increases in net interest income and net interest margin, compared with both prior year periods also reflect the impact of $32 million of discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans. Net interest income for the third quarter and first nine months of 2025 was $678 million and $1.89 billion, respectively. Excluding the impact of the aforementioned discount accretion and interest recoveries, adjusted net income for the third quarter and first nine months of 2025 was $645 million and $1.86 billion, respectively. Net interest margin for the third quarter and first nine months of 2025 was 3.53% and 3.41%, respectively. Adjusted net interest margin for the for the third quarter and first nine months of 2025 was 3.36% and 3.35%, respectively. Adjusted net income and adjusted net interest margin are non-GAAP financial measures. For additional details, refer to Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.
70