10-Q – 2026-05-08 – ewbc-20260331.htm

Subtotal 141,370   MMBTUs 6,092   31,602   184,544   MMBTUs 7,693   25,096  
Total $ 122,427   $ 34,012   $ 7,919   $ 67,251  
Economic hedges:
Commodity contracts:
Crude oil:
Swaps 6,244   Barrels $ 1,523   $ 53,380   4,255   Barrels $ 25,309   $ 11  
Collars 3,035   Barrels —   29,529   3,747   Barrels 8,724   21  

Subtotal 9,279   Barrels 1,523   82,909   8,002   Barrels 34,033   32  
Natural gas:
Swaps 88,528   MMBTUs 18,314   4,325   110,506   MMBTUs 18,258   3,963  
Collars 50,287   MMBTUs 4,121   842   68,965   MMBTUs 5,812   912  

Subtotal 138,815   MMBTUs 22,435   5,167   179,471   MMBTUs 24,070   4,875  
Total $ 23,958   $ 88,076   $ 58,103   $ 4,907  

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 $ 584 thousand and $ 590 thousand as of March 31, 2026 and December 31, 2025, respectively.

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The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
Notional Amount
Fair Value Notional Amount
Fair Value
($ in thousands)
Assets Liabilities Assets Liabilities
RPAs — protection sold (1)
$ 178,620   $ —   $ 129   $ 133,756   $ —   $ 51  
RPAs — protection purchased
169,624   16   —   169,665   25   —  
Total RPAs $ 348,244   $ 16   $ 129   $ 303,421   $ 25   $ 51  

(1) All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 3.5 years and 2.7 years as of March 31, 2026 and December 31, 2025, 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 an investment the Company made 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 months ended March 31, 2026 and 2025:

Three Months Ended March 31,
($ in thousands) Classification on Consolidated Statement of Income 2026 2025
Derivatives not designated as hedging instruments:
Interest rate contracts Customer derivative income and derivative mark-to-market adjustments
$ 1,247   $ ( 1,402 )
Credit contracts Customer derivative income and derivative mark-to-market adjustments
( 87 ) 10  
Commodity contracts Customer derivative income and derivative mark-to-market adjustments
( 226 ) ( 78 )
Total derivative mark-to-market and credit valuation adjustments Customer derivative income and derivative mark-to-market adjustments
934   ( 1,470 )
Foreign exchange contracts Foreign exchange income 14,338   13,238  
Equity contracts - warrants Lending and loan servicing fees
61   179  
Equity contracts - performance-based RSU Other investment income 688   —  
Net derivative gains
$ 16,021   $ 11,947  

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 March 31, 2026, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 4 million , for which $ 4 million collateral was posted to cover these positions. In comparison, a s of December 31, 2025, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 3 million, for which $ 3 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 minimal additional collateral as of both March 31, 2026 and December 31, 2025.

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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 March 31, 2026
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 $ 470,335   $ ( 111,845 ) $ ( 170,048 ) $ 188,442   $ ( 30,186 ) $ 158,256  

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 $ 433,751   $ ( 111,845 ) $ ( 17,540 ) $ 304,366   $ ( 26,882 ) $ 277,484  

($ in thousands) As of December 31, 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 $ 409,467   $ ( 74,138 ) $ ( 183,387 ) $ 151,942   $ ( 42,779 ) $ 109,163  

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 $ 385,973   $ ( 74,138 ) $ ( 27,502 ) $ 284,333   $ —   $ 284,333  

(1) Includes $ 6 million and $ 9 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of March 31, 2026 and December 31, 2025, respectively.
(2) Includes $ 19 million and $ 16 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of March 31, 2026 and December 31, 2025, respectively.
(3) Gross cash collateral received under master netting arrangements or similar agreements were $ 175 million and $ 184 million as of March 31, 2026 and December 31, 2025, respectively. Of the gross cash collateral received, $ 170 million and $ 183 million were used to offset against derivative assets as of March 31, 2026 and December 31, 2025, respectively.
(4) Gross cash collateral pledged under master netting arrangements or similar agreements were $ 24 million and $ 29 million as of March 31, 2026 and December 31, 2025, respectively. Of the gross cash collateral pledged, $ 18 million and $ 28 million were used to offset against derivative liabilities as of March 31, 2026 and December 31, 2025, 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 may have 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.
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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 March 31, 2026 and December 31, 2025:

($ in thousands) March 31, 2026 December 31, 2025
Commercial:
C&I $ 19,550,953   $ 18,650,755  
CRE:
CRE 15,491,057   15,407,088  
Multifamily residential 5,129,247   5,112,328  
Construction and land 811,999   742,357  
Total CRE 21,432,303   21,261,773  
Total commercial 40,983,256   39,912,528  
Consumer:
Residential mortgage:
Single-family residential (“SFR”)
15,119,709   15,002,549  
Home equity lines of credit (“HELOCs”)
1,945,867   1,911,897  
Total residential mortgage 17,065,576   16,914,446  
Other consumer 51,917   51,198  
Total consumer 17,117,493   16,965,644  
Total loans held-for-investment (1)
$ 58,100,749   $ 56,878,172  
ALLL
( 835,874 ) ( 809,773 )
Loans held-for-investment, net (1)
$ 57,264,875   $ 56,068,399  

(1) Includes $ 17 million and $ 26 million of net deferred loan fees and net unamortized premiums as of March 31, 2026 and December 31, 2025, respectively.

Accrued interest receivable on loans held-for-investment was $ 249 million and $ 251 million as of March 31, 2026 and December 31, 2025, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income recognized and reversed on nonaccrual loans was immaterial for both the three months ended March 31, 2026 and 2025. 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 2025 Form 10-K. The Company also has 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 2025 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $ 42.8 billion and $ 41.8 billion were pledged to secure borrowings and provide additional borrowing capacity as of March 31, 2026 and December 31, 2025, respectively.

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.”
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• 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.
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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 three months ended March 31, 2026, and the year ended December 31, 2025. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.

March 31, 2026
Term Loans by Origination Year
($ in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Loans
Total
Commercial:
C&I:
Pass $ 665,659   $ 2,906,360   $ 1,485,504   $ 812,869   $ 444,075   $ 609,918   $ 12,030,255   $ 69,610   $ 19,024,250  
Criticized (accrual) 25   400   38,075   34,555   85,971   50,822   255,792   —   465,640  
Criticized (nonaccrual)
—   2,890   4,280   14,989   103   38,680   121   —   61,063  

Total C&I 665,684   2,909,650   1,527,859   862,413   530,149   699,420   12,286,168   69,610   19,550,953  
Gross write-offs (1)
—   38   89   8,193   4,601   3,202   10   —   16,133  
CRE:
Pass 553,283   2,597,867   1,546,632   1,943,710   3,100,174   5,050,710   72,238   52,175   14,916,789  
Criticized (accrual) —   30,166   31,082   103,021   155,361   218,143   —   —   537,773  
Criticized (nonaccrual)
—   2,013   —   18,785   —   15,697   —   —   36,495  

Subtotal CRE 553,283   2,630,046   1,577,714   2,065,516   3,255,535   5,284,550   72,238   52,175   15,491,057  
Gross write-offs
—   1,305   —   —   —   —   —   —   1,305  
Multifamily residential:
Pass 229,288   840,553   326,725   429,290   1,132,216   2,125,158   28,102   3,804   5,115,136  
Criticized (accrual) —   —   —   —   5,151   8,685   —   —   13,836  
Criticized (nonaccrual)
—   —   —   —   —   275   —   —   275  

Subtotal multifamily residential 229,288   840,553   326,725   429,290   1,137,367   2,134,118   28,102   3,804   5,129,247  

Construction and land:
Pass 56,612   270,045   122,595   236,324   85,197   16,787   5,105   —   792,665  

Criticized (nonaccrual)
—   —   —   —   19,334   —   —   —   19,334  
Subtotal construction and land 56,612   270,045   122,595   236,324   104,531   16,787   5,105   —   811,999  

Total CRE 839,183   3,740,644   2,027,034   2,731,130   4,497,433   7,435,455   105,445   55,979   21,432,303  

Total CRE gross write-offs (1)
—   1,305   —   —   —   —   —   —   1,305  
Total commercial $ 1,504,867   $ 6,650,294   $ 3,554,893   $ 3,593,543   $ 5,027,582   $ 8,134,875   $ 12,391,613   $ 125,589   $ 40,983,256  
Total commercial gross write-offs (1)
$ —   $ 1,343   $ 89   $ 8,193   $ 4,601   $ 3,202   $ 10   $ —   $ 17,438  

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March 31, 2026
Term Loans by Origination Year
($ in thousands) 2026 2025 2024 2023 2022 Prior Revolving Loans Revolving Loans Converted to Term Loans
Total
Consumer:
Residential mortgage:
SFR:
Pass (2)
$ 756,418   $ 2,727,809   $ 1,696,060   $ 2,233,611   $ 2,737,115   $ 4,906,622   $ —   $ —   $ 15,057,635  
Criticized (accrual) —   6,395   4,497   6,832   3,751   6,995   —   —   28,470  
Criticized (nonaccrual) (2)
—   9,003   5,848   4,869   3,188   10,696   —   —   33,604  
Subtotal SFR mortgage
756,418   2,743,207   1,706,405   2,245,312   2,744,054   4,924,313   —   —   15,119,709  
Gross write-offs (1)
7   3   20   4   8   79   —   —   121  
HELOCs:
Pass 400   13,186   2,254   5,196   9,987   27,136   1,786,887   67,734   1,912,780  
Criticized (accrual) —   963   416   352   —   1,092   980   326   4,129  
Criticized (nonaccrual)
—   1,123   133   2,525   2,932   16,895   826   4,524   28,958  
Subtotal HELOCs 400   15,272   2,803   8,073   12,919   45,123   1,788,693   72,584   1,945,867  

Total residential mortgage 756,818   2,758,479   1,709,208   2,253,385   2,756,973   4,969,436   1,788,693   72,584   17,065,576  
Total residential mortgage gross write-offs (1)
7   3   20   4   8   79   —   —   121  
Other consumer:
Pass 1,369   24,481   —   —   4,651   5,694   15,683   —   51,878  
Criticized (accrual) 10   —   —   —   —   —   —   —   10  
Criticized (nonaccrual)
—   —   —   —   —   —   29   —   29  
Total other consumer 1,379   24,481   —   —   4,651   5,694   15,712   —   51,917  

Total consumer $ 758,197   $ 2,782,960   $ 1,709,208   $ 2,253,385   $ 2,761,624   $ 4,975,130   $ 1,804,405   $ 72,584   $ 17,117,493  
Total consumer gross write-offs (1)
$ 7 $ 3 $ 20 $ 4 $ 8 $ 79 $ — $ — $ 121
Total loans held-for-investment:
Pass $ 2,263,029   $ 9,380,301   $ 5,179,770   $ 5,661,000   $ 7,513,415   $ 12,742,025   $ 13,938,270   $ 193,323   $ 56,871,133  
Criticized (accrual) 35   37,924   74,070   144,760   250,234   285,737   256,772   326   1,049,858  
Criticized (nonaccrual)
—   15,029   10,261   41,168   25,557   82,243   976   4,524   179,758  
Total $ 2,263,064   $ 9,433,254   $ 5,264,101   $ 5,846,928   $ 7,789,206   $ 13,110,005   $ 14,196,018   $ 198,173   $ 58,100,749  
Total loans held-for-investment gross write-offs (1)
$ 7   $ 1,346   $ 109   $ 8,197   $ 4,609   $ 3,281   $ 10   $ —   $ 17,559  

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December 31, 2025
Term Loans by Origination Year
($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans
Total
Commercial:
C&I:
Pass $ 3,013,368   $ 1,717,361   $ 880,267   $ 536,461   $ 391,413   $ 302,893   $ 11,308,551   $ 67,968   $ 18,218,282  
Criticized (accrual) 572   35,223   1,662   93,562   83,813   6,771   158,626   —   380,229  
Criticized (nonaccrual) 2,922   4,733   26,810   1,640   9,525   6,526   88   —   52,244  

Total C&I 3,016,862   1,757,317   908,739   631,663   484,751   316,190   11,467,265   67,968   18,650,755  
Gross write-offs (1)
2,617   1,199   28,752   4,643   1,063   3,170   24   —   41,468  
CRE:
Pass 2,615,789   1,562,420   2,015,433   3,188,363   1,708,927   3,607,918   78,712   47,512   14,825,074  
Criticized (accrual) 30,275   29,807   116,862   134,018   48,569   183,937   —   —   543,468  
Criticized (nonaccrual) 3,317   —   4,172   7,439   12,330   11,288   —   —   38,546  

Subtotal CRE 2,649,381   1,592,227   2,136,467   3,329,820   1,769,826   3,803,143   78,712   47,512   15,407,088  
Gross write-offs (1)
8,932   —   —   160   19   15,126   —   —   24,237  
Multifamily residential:
Pass 895,323   338,209   478,782   1,138,693   663,916   1,547,124   32,207   3,820   5,098,074  
Criticized (accrual) —   —   —   5,175   —   8,787   —   —   13,962  
Criticized (nonaccrual) —   —   —   —   —   292   —   —   292  

Subtotal multifamily residential 895,323   338,209   478,782   1,143,868   663,916   1,556,203   32,207   3,820   5,112,328  
Gross write-offs (1)
—   —   —   —   —   8   —   —   8  
Construction and land:
Pass 246,380   109,799   247,482   90,086   13,437   3,462   3,901   —   714,547  

Criticized (nonaccrual) —   8,897   —   18,913   —   —   —   —   27,810  
Subtotal construction and land 246,380   118,696   247,482   108,999   13,437   3,462   3,901   —   742,357  

Total CRE 3,791,084   2,049,132   2,862,731   4,582,687   2,447,179   5,362,808   114,820   51,332   21,261,773  
Total CRE gross write-offs (1)
8,932   —   —   160   19   15,134   —   —   24,245  
Total commercial $ 6,807,946   $ 3,806,449   $ 3,771,470   $ 5,214,350   $ 2,931,930   $ 5,678,998   $ 11,582,085   $ 119,300   $ 39,912,528  
Total commercial gross write-offs (1)
$ 11,549   $ 1,199   $ 28,752   $ 4,803   $ 1,082   $ 18,304   $ 24   $ —   $ 65,713  

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December 31, 2025
Term Loans by Origination Year
($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans Total
Consumer:
Residential mortgage:
SFR:

Pass (2)
$ 2,861,764   $ 1,837,821   $ 2,349,242   $ 2,808,694   $ 1,860,110   $ 3,228,996   $ —   $ —   $ 14,946,627  
Criticized (accrual) 3,157   3,646   5,589   5,427   235   9,356   —   —   27,410  
Criticized (nonaccrual) (2)
4,566   891   3,445   4,617   1,620   13,373   —   —   28,512  
Subtotal SFR mortgage
2,869,487   1,842,358   2,358,276   2,818,738   1,861,965   3,251,725   —   —   15,002,549  
Gross write-offs (1)
—   14   —   —   —   —   —   —   14  
HELOCs:
Pass 13,652   4,796   4,740   5,258   11,233   22,213   1,750,894   70,577   1,883,363  
Criticized (accrual) 1,879   —   97   140   287   526   6,784   1,654   11,367  
Criticized (nonaccrual) 1,288   13   379   2,610   1,232   7,033   —   4,612   17,167  
Subtotal HELOCs 16,819   4,809   5,216   8,008   12,752   29,772   1,757,678   76,843   1,911,897  
Gross write-offs (1)
—   —   —   —   —   —   —   6   6  
Total residential mortgage 2,886,306   1,847,167   2,363,492   2,826,746   1,874,717   3,281,497   1,757,678   76,843   16,914,446  
Total residential mortgage gross write-offs (1)
—   14   —   —   —   —   —   6   20  
Other consumer:
Pass 25,146   —   —   4,635   129   5,570   15,576   —   51,056  

Criticized (nonaccrual) —   —   49   —   —   —   93   —   142  
Total other consumer 25,146   —   49   4,635   129   5,570   15,669   —   51,198  

Total consumer $ 2,911,452   $ 1,847,167   $ 2,363,541   $ 2,831,381   $ 1,874,846   $ 3,287,067   $ 1,773,347   $ 76,843   $ 16,965,644  
Total consumer gross write-offs (1)
$ —   $ 14   $ —   $ —   $ —   $ —   $ —   $ 6   $ 20  
Total loans held-for-investment:
Pass $ 9,671,422   $ 5,570,406   $ 5,975,946   $ 7,772,190   $ 4,649,165   $ 8,718,176   $ 13,189,841   $ 189,877   $ 55,737,023  
Criticized (accrual) 35,883   68,676   124,210   238,322   132,904   209,377   165,410   1,654   976,436  
Criticized (nonaccrual) 12,093   14,534   34,855   35,219   24,707   38,512   181   4,612   164,713  

Total $ 9,719,398   $ 5,653,616   $ 6,135,011   $ 8,045,731   $ 4,806,776   $ 8,966,065   $ 13,355,432   $ 196,143   $ 56,878,172  
Total loans held-for-investment gross write-offs (1)
$ 11,549   $ 1,213   $ 28,752   $ 4,803   $ 1,082   $ 18,304   $ 24   $ 6   $ 65,733  

(1) Excludes gross write-offs associated with loans the Company sold or settled.
(2) $ 1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both March 31, 2026 and December 31, 2025.

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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 March 31, 2026 and December 31, 2025:

March 31, 2026
($ 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 $ 19,471,033   $ 13,266   $ 5,591   $ 18,857   $ 61,063   $ 19,550,953  
CRE:
CRE 15,409,331   6,097   39,134   45,231   36,495   15,491,057  
Multifamily residential 5,123,675   5,297   —   5,297   275   5,129,247  
Construction and land 792,665   —   —   —   19,334   811,999  
Total CRE 21,325,671   11,394   39,134   50,528   56,104   21,432,303  
Total commercial 40,796,704   24,660   44,725   69,385   117,167   40,983,256  
Consumer:
Residential mortgage:
SFR
15,009,884   46,542   28,789   75,331   34,494   15,119,709  
HELOCs 1,893,351   18,452   5,106   23,558   28,958   1,945,867  
Total residential mortgage 16,903,235   64,994   33,895   98,889   63,452   17,065,576  
Other consumer 51,791   60   37   97   29   51,917  
Total consumer 16,955,026   65,054   33,932   98,986   63,481   17,117,493  
Total $ 57,751,730   $ 89,714   $ 78,657   $ 168,371   $ 180,648   $ 58,100,749  

December 31, 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 $ 18,572,467   $ 25,962   $ 82   $ 26,044   $ 52,244   $ 18,650,755  
CRE:
CRE 15,354,548   10,525   3,469   13,994   38,546   15,407,088  
Multifamily residential 5,110,783   1,253   —   1,253   292   5,112,328  
Construction and land 714,547   —   —   —   27,810   742,357  
Total CRE 21,179,878   11,778   3,469   15,247   66,648   21,261,773  
Total commercial 39,752,345   37,740   3,551   41,291   118,892   39,912,528  
Consumer:
Residential mortgage:
SFR
14,899,224   46,010   27,674   73,684   29,641   15,002,549  
HELOCs 1,860,080   23,328   11,322   34,650   17,167   1,911,897  
Total residential mortgage
16,759,304   69,338   38,996   108,334   46,808   16,914,446  
Other consumer 50,979   56   21   77   142   51,198  
Total consumer 16,810,283   69,394   39,017   108,411   46,950   16,965,644  
Total $ 56,562,628   $ 107,134   $ 42,568   $ 149,702   $ 165,842   $ 56,878,172  

39

The following table presents the amortized cost of loans on nonaccrual status for which there was no related ALLL as of both March 31, 2026 and December 31, 2025. 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) March 31, 2026 December 31, 2025

Commercial:
C&I $ 14,769   $ 21,723  

CRE 32,874   33,705  

Construction and land 19,334   27,810  

Total commercial 66,977   83,238  
Consumer:

SFR
8,828   6,095  
HELOCs 7,913   4,081  

Total consumer 16,741   10,176  
Total nonaccrual loans with no related ALLL
$ 83,718   $ 93,414  

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 $ 15 million of foreclosed assets as of March 31, 2026, compared with $ 21  million as of December 31, 2025. 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 $ 26 million and $ 16 million as of March 31, 2026 and December 31, 2025, 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.

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The following tables present the amortized cost of loans that were modified during the three months ended March 31, 2026 and 2025 by loan class and modification type:

Three Months Ended March 31, 2026

Modification Type

($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay
Total Modification as a % of Loan Class
Commercial:
C&I $ 83,122   $ —   $ —   $ 83,122   0.43   %

CRE 39,686   —   —   39,686   0.26   %

Land and construction —   19,334   —   19,334   2.38   %

Total commercial 122,808   19,334   —   142,142   0.35   %
Consumer:

SFR
—   5,680   —   5,680   0.04   %
HELOCs —   1,286   —   1,286   0.07   %

Total consumer —   6,966   —   6,966   0.04   %
Total $ 122,808   $ 26,300   $ —   $ 149,108   0.26   %

Three Months Ended March 31, 2025
Modification Type

($ in thousands) Term Extension Payment Delay Combination: Term Extension/ Payment Delay Total Modification as a % of Loan Class
Commercial:
C&I $ 15,651   $ —   $ 23,749   $ 39,400   0.23   %

CRE 18,082   —   —   18,082   0.12   %
Multifamily 280   —   —   280   0.01   %

Total commercial 34,013   —   23,749   57,762   0.15   %
Consumer:

SFR
—   4,061   88   4,149   0.03   %
HELOCs —   975   911   1,886   0.10   %

Total consumer —   5,036   999   6,035   0.04   %
Total $ 34,013   $ 5,036   $ 24,748   $ 63,797   0.12   %

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The following table presents the financial effects of the loan modifications for the three months ended March 31, 2026 and 2025 by loan class and modification type:

Financial Effects of Loan Modifications
for the Three Months Ended March 31,

2026 2025
($ in thousands) Weighted-average Term Extension (in years)
Weighted-average Payment Delay
(in years)
Weighted-average Term Extension (in years)
Weighted-average Payment Delay
 (in years)

Commercial:
C&I 1.1 0.0 1.1 1.0

CRE 1.1 0.0 5.0 0.0

Land and construction 0.0 0.7 0.0 0.0

Consumer:

SFR
0.0 0.5 10.0 1.0
HELOCs 0.0 1.1 17.6 15.4

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 months ended March 31, 2026 and 2025.

Loans Modified that Subsequently Defaulted During the Three Months Ended March 31, 2026

($ in thousands) Term Extension Payment Delay Total
Commercial:
C&I $ —   $ 28,639   $ 28,639  

Total commercial —   28,639   28,639  
Consumer:

SFR
—   3,202   3,202  
HELOCs —   295   295  

Total consumer —   3,497   3,497  
Total $ —   $ 32,136   $ 32,136  

Loans Modified that Subsequently Defaulted During the Three Months Ended March 31, 2025

($ in thousands) Term Extension Payment Delay Total
Commercial:
C&I $ —   $ 2,193   $ 2,193  

CRE 22,631   —   22,631  

Total commercial 22,631   2,193   24,824  
Consumer:

SFR
$ —   $ 3,455   $ 3,455  
HELOCs —   2,121   2,121  

Total consumer —   5,576   5,576  
Total $ 22,631   $ 7,769   $ 30,400  

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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 March 31, 2026 and 2025:

Payment Performance as of March 31, 2026

($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total
Commercial:
C&I $ 178,896   $ 400   $ 28,639   $ 207,935  

CRE 127,782   30,110   —   157,892  

Construction and land 9,603   —   19,334   28,937  

Total commercial 316,281   30,510   47,973   394,764  
Consumer:

SFR
22,385   8,602   3,723   34,710  
HELOCs 12,927   3,843   —   16,770  

Total consumer 35,312   12,445   3,723   51,480  
Total $ 351,593   $ 42,955   $ 51,696   $ 446,244  
Total nonaccrual loans included above
$ 31,559   $ 400   $ 51,696   $ 83,655  

Payment Performance as of March 31, 2025

($ in thousands) Current 30 - 89 Days Past Due 90+ Days Past Due Total
Commercial:
C&I $ 80,147   $ 3,608   $ 1,515   $ 85,270  

CRE 66,040   —   —   66,040  
Multifamily residential 280   —   —   280  

Total commercial 146,467   3,608   1,515   151,590  
Consumer:

SFR
8,122   3,469   3,597   15,188  
HELOCs 5,137   2,369   3,796   11,302  

Total consumer 13,259   5,838   7,393   26,490  
Total $ 159,726   $ 9,446   $ 8,908   $ 178,080  
Total nonaccrual loans included above
$ 29,925   $ 3,608   $ 8,908   $ 42,441  

As of March 31, 2026 and December 31, 2025, commitments to lend additional funds to borrowers whose loans were modified totaled $ 2 million and $ 14 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.

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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. 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 no change to the reversion to the historical loss experience method for the three months ended March 31, 2026 and 2025.

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 Risk rating, sector, loan origination size, loan age, delinquency status
Unemployment rate, gross domestic product (“GDP”), and U.S. Treasury rates

CRE, Multifamily residential, and Construction and land Collateral value, property type, geographic location, loan age, delinquency status
Unemployment rate, GDP, and U.S. Treasury rates
SFR and HELOCs
Collateral value, FICO score, geographic location, loan age, delinquency status
House Price Indices, unemployment rate, GDP

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.

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Quantitative Component — ALLL for the Consumer Loan Portfolio

For SFR 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 SFR 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 depend 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 March 31, 2026, collateral-dependent commercial and consumer loans totaled $ 58 million and $ 17 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $ 69 million and $ 10 million, respectively, as of December 31, 2025. The Company's collateral-dependent loans were secured by real estate. As of both March 31, 2026 and December 31, 2025, 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.
45

The following tables summarize the activity in the ALLL by portfolio segments for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land
SFR
HELOCs Other Consumer Total
ALLL, beginning of period
$ 475,613   $ 221,494   $ 36,555   $ 15,468   $ 53,463   $ 5,804   $ 1,376   $ 809,773  

Provision for (reversal of) credit losses on loans (a) 17,892   11,160   2,880   2,593   3,519   92   ( 262 ) 37,874  
Gross charge-offs ( 18,385 ) ( 1,305 ) —   ( 893 ) ( 121 ) —   ( 75 ) ( 20,779 )
Gross recoveries 7,918   453   11   2   22   3   251   8,660  
Total net (charge-offs) recoveries
( 10,467 ) ( 852 ) 11   ( 891 ) ( 99 ) 3   176   ( 12,119 )
Foreign currency translation adjustment 346   —   —   —   —   —   —   346  
ALLL, end of period
$ 483,384   $ 231,802   $ 39,446   $ 17,170   $ 56,883   $ 5,899   $ 1,290   $ 835,874  

Three Months Ended March 31, 2025
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Multifamily Residential Construction and Land SFR
HELOCs Other Consumer Total

ALLL, beginning of period
$ 384,319   $ 218,677   $ 32,117   $ 17,497   $ 44,816   $ 3,132   $ 1,494   $ 702,052  
Provision for (reversal of) credit losses on loans (a) 36,370   8,105   201   ( 305 ) 2,072   1,739   ( 120 ) 48,062  
Gross charge-offs ( 988 ) ( 13,937 ) ( 4 ) ( 1,996 ) ( 9 ) —   ( 49 ) ( 16,983 )
Gross recoveries 1,564   54   10   3   50   8   13   1,702  
Total net recoveries (charge-offs) 576   ( 13,883 ) 6   ( 1,993 ) 41   8   ( 36 ) ( 15,281 )
Foreign currency translation adjustment 23   —   —   —   —   —   —   23  
ALLL, end of period
$ 421,288   $ 212,899   $ 32,324   $ 15,199   $ 46,929   $ 4,879   $ 1,338   $ 734,856  

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 9 — 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 months ended March 31, 2026 and 2025:

Three Months Ended March 31,
($ in thousands) 2026 2025
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period $ 48,690   $ 39,526  

(Reversal of) provision for credit losses on unfunded credit commitments
(b) ( 1,682 ) 938  
Foreign currency translation adjustments ( 3 ) —  
Allowance for unfunded credit commitments, end of period $ 47,005   $ 40,464  

Provision for credit losses on loans, leases and unfunded credit commitments
(a) + (b) $ 36,192   $ 49,000  

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The allowance for credit losses on loans, leases and unfunded credit commitments was $ 883 million as of March 31, 2026, an increase of $ 25  million, compared with $ 858 million as of December 31, 2025. The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment, and rising oil prices as a result of the Middle East conflict.

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 March 31, 2026, the Company assigned the same weighting to each of its upside, downside and baseline scenarios as compared with December 31, 2025. Compared with the December 2025 forecast, the March 2026 baseline forecast for GDP growth showed improvement in the near term and deterioration starting the fourth quarter of 2026. Unemployment rates have also decreased slightly in the current forecast due to lower forecasted labor force growth. The downside scenario assumed the economy falls into recession in the second quarter of 2026 as a result of rising oil prices, inflation, tariffs, deportations, and still-elevated interest rates. The upside scenario assumed a more optimistic economic outlook, including faster resolutions to global conflicts, stronger growth, stable financial markets, and full employment starting in the second quarter of 2026.

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 months ended March 31, 2026 and 2025:

Three Months Ended March 31, 2026
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I Multifamily Residential SFR
Total
Loans transferred from held-for-investment to held-for-sale (1)
$ 101,777   $ 9,959   $ 5,345   $ 117,081  

Sales (2)(3)
$ 98,280   $ 9,959   $ 363   $ 108,602  
Purchases $ 109,892   (4)
$ —   $ 140,511   $ 250,403  

Three Months Ended March 31, 2025
Commercial Consumer
CRE Residential Mortgage
($ in thousands) C&I CRE Construction and Land
SFR
Total
Loans transferred from held-for-investment to held-for-sale (1)
$ 6,356   $ 20,338   $ 9,500   $ —   $ 36,194  

Sales (2)(3)
$ 6,356   $ 20,338   $ 11,316   $ —   $ 38,010  
Purchases $ 136,943   (4)
$ —   $ —   $ 87,364   $ 224,307  

(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 each of the three months ended March 31, 2026 and 2025.
(2) Includes originated loans sold of $ 69 million and $ 34 million for the three months ended March 31, 2026 and 2025, respectively. Originated loans sold were primarily comprised of C&I loans for the three months ended March 31, 2026, and CRE and construction loans for the three months ended March 31, 2025.
(3) Includes $ 39 million and $ 4 million of purchased loans sold in the secondary market for the three months ended March 31, 2026 and 2025, respectively.
(4) C&I loan purchases were comprised of syndicated C&I term loans.

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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 the 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 2025 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.

The following table presents the investments and unfunded commitments of the Company’s affordable housing partnership, tax credit, and CRA investments, net as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ in thousands) Assets Liabilities - Unfunded Commitments (1)
Assets
Liabilities - Unfunded Commitments (1)

PAM:
Affordable housing partnership investments $ 468,044   $ 161,505   $ 483,021   $ 172,343  
Tax credit and CRA investments 145,280   57,071   140,723   43,878  
Equity method of accounting and other:
Tax credits and CRA investments 370,652   (2)
149,346   345,748   (2)
121,275  
Total $ 983,976   $ 367,922   $ 969,492   $ 337,496  

(1) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.
(2) Includes $ 37 million of equity securities without readily determinable fair values as of both March 31, 2026 and December 31, 2025.

48

The following table presents additional information related to the investments in affordable housing partnership, tax credit and CRA investments for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,
($ in thousands) 2026 2025
Tax credits and benefits (1) :

PAM:
Affordable housing partnership investments $ 20,156   $ 19,662  
Tax credit and CRA investments 25,182   17,633  
Equity method of accounting and other:
Tax credit and CRA investments 20,149   12,005  
Total tax credits and benefits $ 65,487   $ 49,300  

Amortization (2) :

PAM (3) :

Affordable housing partnership investments $ 14,977   $ 15,406  
Tax credit and CRA investments 23,105   12,864  
Equity method of accounting and other:
Tax credit and CRA investments (4)
21,984   15,742  
Total amortization $ 60,066   $ 44,012  

(1) Included in Income tax expense on the Consolidated Statement of Income.
(2) Amortization of affordable housing partnership, tax credit and CRA investments is included in Depreciation, amortization, and accretion, net on the Consolidated Statement of Cash Flows.
(3) 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.
(4) 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 as of both March 31, 2026 and December 31, 2025, included in Other Assets on the Consolidated Balance Sheet.

Note 8 — 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 March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ in thousands) Interest Rates Maturity Dates Amount Amount

Parent company
Junior subordinated debt — floating (1)
  5.49 %
12/15/2035 $ 32,400   $ 32,320  
Bank

FHLB advances (2) :

Floating (3)
3.78 % — 3.88 %
2026 — 2027 $ 1,900,000   $ 2,000,000  
Fixed
3.87 % — 3.95 %
2026 1,100,000   750,000  
Overnight N/A N/A —   250,000  
Total FHLB advances
$ 3,000,000   $ 3,000,000  

N/A — Not applicable.
(1) As of March 31, 2026, 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 5.49 % and 5.53 % as of March 31, 2026 and December 31, 2025, respectively. For additional information on the junior subordinated debt, refer to Note 10 - Federal Home Loan Bank Advances and Long-Term Debt in the Company’s 2025 Form 10-K.
(2) The weighted-average interest rates for FHLB advances were 3.87 % and 3.94 % as of March 31, 2026 and December 31, 2025, respectively.
(3) Floating interest rates are based on the SOFR plus the established spread.

49

The Bank’s available borrowing capacity from FHLB advances totaled $ 11.7  billion as of March 31, 2026. 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 and standby letters of credit (“SBLC”). As of March 31, 2026, all advances were secured by real estate loans.

Note 9 — 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.

The following table presents the Company’s credit-related commitments as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ 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 $ 4,699,796   $ 3,405,090   $ 855,790   $ 219,462   $ 9,180,138   $ 9,623,963  
Commercial letters of credit and SBLCs
1,339,368   566,099   152,788   934,073   2,992,328   2,956,290  
Total $ 6,039,164   $ 3,971,189   $ 1,008,578   $ 1,153,535   $ 12,172,466   $ 12,580,253  

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 March 31, 2026, total letters of credit of $ 3.0 billion consisted of SBLCs of $ 3.0 billion and commercial letters of credit of $ 39 million. In comparison, as of December 31, 2025, total letters of credit of $ 3.0 billion consisted of SBLCs of $ 2.9 billion and commercial letters of credit of $ 31 million. As of both March 31, 2026 and December 31, 2025, 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 $ 47 million and $ 49 million as of March 31, 2026 and December 31, 2025, respectively. For further information on the allowance for unfunded credit commitments, refer to Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

50

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 March 31, 2026 and December 31, 2025:

Maximum Potential Future Payments Carrying Value (1)

March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025
($ in thousands) Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Total Total
SFR loans sold or securitized with recourse
$ 14   $ 397   $ 2,580   $ 2,991   $ 3,137   $ 2,991   $ 3,137  
Multifamily residential loans sold or securitized with recourse 116   39   14,841   14,996   14,996   15,595   15,895  
Total $ 130   $ 436   $ 17,421   $ 17,987   $ 18,133   $ 18,586   $ 19,032  

(1) Represents the unpaid principal balance.

The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse and recorded an immaterial recourse reserve as of both March 31, 2026 and December 31, 2025.

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 March 31, 2026, 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 10 — 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 March 31, 2026 and December 31, 2025.

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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 months ended March 31, 2026 and 2025:

Three Months Ended March 31,
($ in thousands) 2026 2025
Stock compensation costs $ 19,837   $ 13,186  
Related net tax benefits for stock compensation plans
$ 6,934   $ 2,655  

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 RSU grants are time-based vesting awards, other RSUs 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 2025 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 three months ended March 31, 2026. 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, 2026
1,352,024   $ 81.51   282,729   $ 83.87  

Granted 438,555   111.61   114,482   113.88  
Vested ( 394,959 ) 74.60   ( 96,271 ) 79.93  
Forfeited ( 9,669 ) 92.11   —   —  
Outstanding, March 31, 2026
1,385,951   $ 92.93   300,940   $ 96.55  

As of March 31, 2026, there was $ 62 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 2.1 years, and $ 12 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 2.5 years.

52

Note 11 — Stockholders’ Equity and Earnings Per Share

The following table presents the basic and diluted EPS calculations for the three months ended March 31, 2026 and 2025. 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 2025 Form 10-K.

Three Months Ended March 31,
($ and shares in thousands, except per share data) 2026 2025
Basic:
Net income $ 357,796   $ 290,270  
Basic weighted-average number of shares outstanding 138,054   (1)
138,201  
Basic EPS $ 2.59   $ 2.10  
Diluted:
Net income $ 357,796   $ 290,270  
Less: Fair value changes of liability-classified equity contracts, net of tax (2)
( 495 ) —  
Net income, diluted $ 357,301   $ 290,270  
Basic weighted-average number of shares outstanding 138,054   (1)
138,201  
Add: Dilutive impact of unvested RSUs 865   1,090  
Diluted weighted-average number of shares outstanding 138,919   139,291  
Diluted EPS $ 2.57   $ 2.08  

(1) Includes retirement-eligible employees’ awards.
(2) Applied blended statutory tax rate of 28.02 % for the three months ended March 31, 2026.

Approximately 113 thousand and 91 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three months ended March 31, 2026 and 2025, respectively.

Stock Repurchase Program — On January 22, 2025, the Company’s Board of Directors authorized a stock repurchase of up to $ 300 million of the Company’s common stock. The Company repurchased $ 99 million and $ 85 million of its common stock for the three months ended March 31, 2026 and 2025, respectively .

Note 12 — Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2026 and 2025:

($ in thousands) Debt Securities (1)
Cash Flow Hedges Foreign Currency Translation Adjustments (2)
Total
Balance, January 1, 2025 $ ( 542,152 ) $ ( 20,787 ) $ ( 22,321 ) $ ( 585,260 )
Net unrealized gains (losses) arising during the period 57,377   26,325   ( 1,012 ) 82,690  
Amounts reclassified from AOCI 2,600   4,955   —   7,555  
Changes, net of tax 59,977   31,280   ( 1,012 ) 90,245  
Balance, March 31, 2025
$ ( 482,175 ) $ 10,493   $ ( 23,333 ) $ ( 495,015 )

Balance, January 1, 2026 $ ( 353,232 ) $ 28,209   $ ( 20,587 ) $ ( 345,610 )
Net unrealized (losses) gains arising during the period
( 32,472 ) ( 15,765 ) 4,086   ( 44,151 )
Amounts reclassified from AOCI 1,952   ( 411 ) —   1,541  
Changes, net of tax ( 30,520 ) ( 16,176 ) 4,086   ( 42,610 )
Balance, March 31, 2026
$ ( 383,752 )

$ 12,033   $ ( 16,501 ) $ ( 388,220 )

(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 investments in non-U.S. operations.

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The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,
2026 2025
($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax
Debt securities:
Net unrealized (losses) gains arising during the period
$ ( 46,086 ) $ 13,614   $ ( 32,472 ) $ 81,538   $ ( 24,161 ) $ 57,377  
Reclassification adjustments:
Net realized gains on AFS debt securities reclassified into net income (1)
( 808 ) 239   ( 569 ) ( 131 ) 39   ( 92 )
Amortization of unrealized losses on transferred securities (2)
3,579   ( 1,058 ) 2,521   3,822   ( 1,130 ) 2,692  
Net change ( 43,315 ) 12,795   ( 30,520 ) 85,229   ( 25,252 ) 59,977  
Cash flow hedges:
Net unrealized (losses) gains arising during the period
( 22,382 ) 6,617   ( 15,765 ) 37,466   ( 11,141 ) 26,325  
Net realized (gains) losses reclassified into net income (3)
( 583 ) 172   ( 411 ) 7,052   ( 2,097 ) 4,955  
Net change ( 22,965 ) 6,789   ( 16,176 ) 44,518   ( 13,238 ) 31,280  
Foreign currency translation adjustments:

Net unrealized gains (losses) arising during the period
4,086   —   4,086   ( 1,012 ) —   ( 1,012 )
Net change 4,086   —   4,086   ( 1,012 ) —   ( 1,012 )
Other comprehensive (loss) income
$ ( 62,194 ) $ 19,584   $ ( 42,610 ) $ 128,735   $ ( 38,490 ) $ 90,245  

(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 Reversal of 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 13 — 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 through which 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, equipment financing, and loan syndication. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging.
54

The remaining centralized functions, including the corporate treasury activities of the Company, tax credit investment activities, 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 months ended March 31, 2026 and 2025:

($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other Total
Three Months Ended March 31, 2026

Net interest income before provision for (reversal of) credit losses
$ 269,247   $ 261,286   $ 140,660   $ 671,193  
Noninterest income 39,962   54,331   8,263   102,556  
Total revenue before provision for (reversal of) credit losses
309,209   315,617   148,923   773,749  
Provision for (reversal of) credit losses
9,185   27,007   ( 192 ) 36,000  
Compensation and employee benefits 70,096   74,844   27,725   172,665  
Other noninterest expense (1)
62,005   36,470   9,174   107,649  
Total noninterest expense 132,101   111,314   36,899   280,314  
Segment income before income taxes
167,923   177,296   112,216   457,435  

Segment net income $ 120,864   $ 127,639   $ 109,293   $ 357,796  
Average balances:
Loans $ 21,034,978   $ 36,019,671   $ —   (2)
$ 57,054,649  
Deposits $ 35,048,413   $ 28,087,719   $ 4,411,502   $ 67,547,634  
As of March 31, 2026

Segment assets $ 21,626,337   $ 38,707,909   $ 22,551,906   $ 82,886,152  

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($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other Total
Three Months Ended March 31, 2025

Net interest income before provision for credit losses $ 269,733   $ 253,001   $ 77,467   $ 600,201  
Noninterest income 32,285   53,579   6,238   92,102  
Total revenue before provision for credit losses 302,018   306,580   83,705   692,303  
Provision for credit losses 7,685   40,779   536   49,000  
Compensation and employee benefits 61,964   61,187   23,284   146,435  
Other noninterest expense (1)
57,192   42,318   6,203   105,713  
Total noninterest expense 119,156   103,505   29,487   252,148  
Segment income before income taxes 175,177   162,296   53,682   391,155  

Segment net income
$ 123,088   $ 114,025   $ 53,157   $ 290,270  
Average balances:
Loans $ 19,762,287   $ 33,211,037   $ 364,387   $ 53,337,711  
Deposits (3)
$ 32,326,906   $ 26,129,141   $ 4,181,535   $ 62,637,582  
As of March 31, 2025

Segment assets $ 20,404,813   $ 35,790,014   $ 19,970,186   $ 76,165,013  

(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, occupancy and equipment expense, 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.
(2) Reallocated to the Commercial Banking and Consumer and Business Banking segments effective first quarter of 2026.
(3) Prior period balances have been reclassified for comparability due to a change in allocation methodology.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Page
Overview
58

Financial Review
59

Results of Operations
60

Net Interest Income
60

Noninterest Income
65

Noninterest Expense
66

Income Taxes
66

Operating Segment Results
67

Balance Sheet Analysis
69

Debt Securities
69

Loan Portfolio
71

Foreign Outstandings
77

Deposits
78

Capital
79

Regulatory Capital and Ratios
80

Risk Management
80

Credit Risk Management
81

Liquidity Risk Management
84

Market Risk Management
87

Critical Accounting Policies and Estimates
92

Reconciliation of GAAP to Non-GAAP Financial Measures
92

57

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, 2025, filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 27, 2026 (the “Company’s 2025 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 March 31, 2026, the Company had $82.9 billion in total assets and approximately 3,400 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 2025 Form 10-K.

Current Developments

Economic Developments

Evolving geopolitical uncertainties, including armed conflict involving Iran or heightened tensions in other regions, as well as changes in trade policies and tariffs, continue to raise concerns about inflation, oil and energy price volatility, and supply chain disruptions. At its March and April 2026 meetings, the Federal Reserve maintained the federal funds target rate, reflecting a cautious stance as it manages persistent inflationary pressures and a gradually cooling labor market amid an increasingly uncertain global environment. These factors may create volatility that could affect both inflation and overall economic growth. 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 Geographic and Political Uncertainties and — Risks Related to Financial Matters in the Company’s 2025 Form 10-K.

Regulatory Updates

In March 2026, the federal banking agencies issued proposed revisions to the U.S. regulatory capital framework. The proposals would, among other things, modify aspects of the standardized approach to risk-based capital treatment of certain exposure categories that are material to the Company. The proposed changes address the definition of capital, the calculation of certain risk-weighted assets and future indexing of certain dollar-based thresholds. The Company has been monitoring these proposals and assessing their potential impacts on its regulatory capital position.

58

Financial Review

Three Months Ended March 31,
($ and shares in thousands, except per share, and ratio data) 2026 2025
Summary of operations:
Net interest income before provision for credit losses $ 671,193  $ 600,201 
Noninterest income 102,556  92,102 
Total revenue 773,749  692,303 
Provision for credit losses 36,000  49,000 

Noninterest expense 280,314  252,148 
Income before income taxes 457,435  391,155 
Income tax expense 99,639  100,885 

Net income $ 357,796  $ 290,270 

Per share:
Basic earnings $ 2.59  $ 2.10 
Diluted earnings $ 2.57  $ 2.08 

Dividends declared $ 0.80  $ 0.60 

Weighted-average number of shares outstanding:
Basic 138,054  138,201 
Diluted 138,919  139,291 

Performance metrics:
Return on average assets (“ROA”)
1.79  % 1.56  %
Return on average common equity (“ROAE”)
16.04  % 14.96  %
Return on average tangible common equity (“ROATCE”) (1)
16.92  % 15.92  %

Common dividend payout ratio 31.16  % 28.97  %
Net interest margin 3.49  % 3.35  %

Efficiency ratio (2)
36.23  % 36.42  %

At period end: March 31, 2026 December 31, 2025
Total assets $ 82,886,152  $ 80,434,997 
Total loans $ 58,128,334  $ 56,899,148 
Total deposits $ 68,919,555  $ 67,082,701 
Common shares outstanding at period-end 136,979  137,579 
Book value per share $ 65.70  $ 64.68 
Tangible book value per share (1)
$ 62.27  $ 61.27 

(1) For additional information regarding the reconciliation of these non-U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“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.

The Company’s net income for the first quarter 2026 was $358 million, a $68 million or 23% increase from the same prior year period. The year-over-year increase was primarily driven by higher net interest income before provision for credit losses, lower provision for credit losses, and increased noninterest income, partially offset by higher noninterest expense. Noteworthy aspects of the Company’s performance for the first quarter of 2026 included:

• Net interest income and net interest margin . First quarter 2026 net interest income before provision for credit losses of $671 million increased $71 million or 12% from the first quarter of 2025. First quarter 2026 net interest margin of 3.49% increased 14 bps year-over-year.

• Earnings per share growth. First quarter 2026 basic and diluted earnings per share both increased 23% to $2.59 and $2.57, respectively, from the first quarter of 2025.

59

• Profitability ratios. First quarter 2026 ROA, ROAE and the ROATCE of 1.79%, 16.04% and 16.92%, respectively, increased 23 bps, 108 bps and 100 bps year-over-year, 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. First quarter 2026 efficiency ratio was 36.23%, compared with 36.42% for the same period in 2025. The improvement in the efficiency ratio was primarily due to higher net interest income before provision for credit losses and an increase in noninterest income.

• Asset growth. Total assets reached $82.9 billion as of March 31, 2026, an increase of $2.5 billion from December 31, 2025, primarily driven by a $1.2 billion or 2% increase in net loans held-for-investment and an $881 million or 7% increase in available-for-sale (“AFS”) debt securities.

• Deposit growth. Total deposits were $68.9 billion as of March 31, 2026, an increase of $1.8 billion or 3%, from December 31, 2025, primarily driven by growth in money market and noninterest-bearing demand deposits.

• Capital levels. Stockholders’ equity was $9.0 billion as of March 31, 2026, up $100 million or 1%, from December 31, 2025. Book value per share of $65.70 as of March 31, 2026, increased $1.02 or 2%, compared with December 31, 2025. Tangible book value per share of $62.27 as of March 31, 2026, increased $1.00 or 2%, compared with December 31, 2025. 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.

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.

60

Net interest income and net interest margin for the first quarter of 2026 increased year-over-year. The $71 million or 12% year-over-year increase in net interest income, and the 14 bp year-over-year increase in net interest margin primarily reflected lower interest-bearing deposit funding costs and Federal Home Loan Bank (“FHLB”) advances, and increases in loans and AFS debt securities’ average balances, partially offset by lower yields on loans, AFS debt securities, and interest-bearing cash and deposits with banks.

Average interest-earning assets were $78.0 billion for the first quarter of 2026, an increase of $5.3 billion or 7% from the first quarter of 2025. The year-over-year increase in average interest-earning assets primarily reflected loan growth and increases in AFS debt securities, partially offset by decreases in interest-bearing cash and deposits with banks.

The 27 bp year-over-year decrease in the yield on average interest-earning assets to 5.49% for the first quarter of 2026, primarily reflected the impact of lower benchmark interest rates on the loan portfolio.

The average loan yield of 6.11% for the first quarter of 2026, decreased 28 bps, from the first quarter of 2025. The year-over-year decrease in the average loan yield primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 59% and 58% of loans held-for-investment were variable-rate as of March 31, 2026 and 2025, respectively.

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Deposits are an important source of funding for the Company. Average deposits were $67.5 billion for the first quarter of 2026, a $4.9 billion or 8% increase from the first quarter of 2025. The year-over-year increase was primarily driven by growth in time, demand and money market deposits. Average noninterest-bearing deposits were $16.9 billion for the first quarter of 2026, a $1.8 billion or 12% increase from the first quarter of 2025.

The average cost of deposit s of 2.13% for the first quarter of 2026, decreased 41 bps from the first quarter of 2025 . The average cost of interest-bearing de posits of 2.84% for the first quarter of 2026, decreased 50 bps, from the first quarter of 2025. These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs.

The average cost of funds calculation includes deposits, FHLB advances, securities sold under repurchase agreements (“repurchase agreements”), long-term debt, and short-term borrowings. The average cost of funds of 2.21% for the first quarter of 2026 decreased 43 bps , from the first quarter of 2025. The year-over-year decrease was mainly driven by the decrease in the cost of deposits as discussed above.

The Company utilizes various tools to manage interest rate risk. Refer to the Interest Rate Risk Management section of Item 2. MD&A — Risk Management — Market Risk Management in this Form 10-Q.

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The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the first quarters of 2026 and 2025:

Three Months Ended March 31,
2026 2025
($ in thousands) Average Balance Interest Average Yield/Rate (1)
Average Balance Interest Average Yield/Rate (1)

ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks $ 3,865,615  $ 29,851  3.13 % $ 4,087,664  $ 39,137  3.88 %
Securities purchased under resale agreements (“resale agreements”) 425,000  1,625  1.55 % 425,000  1,610  1.54 %
Debt securities:
AFS (2)(3)
13,609,231  148,164  4.42 % 11,766,446  135,519  4.67 %
Held-to-maturity (“HTM”) (2)
2,861,401  12,014  1.70 % 2,908,402  12,265  1.71 %
Total debt securities (2)
16,470,632  160,178  3.94 % 14,674,848  147,784  4.08 %
Loans:
Commercial and industrial (“C&I”) (2)
18,752,867  297,315  6.43 % 16,865,399  293,414  7.06 %
Commercial real estate (“CRE”) (2)
21,322,169  315,923  6.01 % 20,373,015  311,386  6.20 %
Residential mortgage 16,928,080  244,884  5.87 % 16,049,719  234,891  5.94 %
Other consumer 51,533  756  5.95 % 49,578  721  5.90 %
Total loans (2)(4)(5)
57,054,649  858,878  6.11 % 53,337,711  840,412  6.39 %

Restricted equity securities
151,183  4,978  13.35 % 165,363  2,859  7.01 %
Total interest-earning assets $ 77,967,079   $ 1,055,510   5.49 % $ 72,690,586   $ 1,031,802   5.76 %

Noninterest-earning assets:
Cash and due from banks 450,219  373,827 
Allowance for loan, lease, and securities’ losses
(836,828) (716,255)
Other assets 3,499,788  3,276,794 
Total assets $ 81,080,258   $ 75,624,952  

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits $ 7,652,611  $ 39,445  2.09 % $ 7,749,665  $ 47,911  2.51 %
Money market deposits 16,203,527  104,878  2.62 % 14,833,615  116,018  3.17 %
Savings deposits 1,701,913  3,010  0.72 % 1,752,946  3,447  0.80 %
Time deposits 25,112,122  208,079  3.36 % 23,197,328  224,605  3.93 %
Total interest-bearing deposits
50,670,173  355,412  2.84 % 47,533,554  391,981  3.34 %
Short-term borrowings and federal funds purchased
567  4  2.86 % 428  6  5.69 %
FHLB advances 2,577,223  25,004  3.93 % 3,500,001  38,866  4.50 %
Repurchase agreements
350,075  3,290  3.81 % 6,684  77  4.67 %
Long-term debt and finance lease liabilities 35,566  607  6.92 % 35,919  671  7.58 %
Total interest-bearing liabilities $ 53,633,604   $ 384,317   2.91 % $ 51,076,586   $ 431,601   3.43 %
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits 16,877,461  15,104,028 
Accrued expenses and other liabilities 1,521,820  1,575,264 
Stockholders’ equity 9,047,373  7,869,074 
Total liabilities and stockholders’ equity $ 81,080,258   $ 75,624,952  

Total deposits
$ 67,547,634   $ 355,412   2.13 % $ 62,637,582   $ 391,981   2.54 %

Interest rate spread 2.58 % 2.33 %
Net interest income and net interest margin $ 671,193   3.49 % $ 600,201   3.35 %

(1) Annualized.
(2) Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.
(3) Includes the amortization of net premiums on AFS debt securities of $1 million and $8 million for the first quarters of 2026 and 2025, respectively.
(4) Average balances include nonperforming loans and loans held-for-sale.
(5) Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $11 million and $12 million for the first quarters of 2026 and 2025, respectively.
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The following table summarizes the extent to which changes in (1) interest rates and (2) volume of average interest-earning assets and average interest-bearing liabilities affected the Company’s net interest income for the periods presented. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into changes attributable to variations in volume and yield/rate. Changes that are not solely due to either volume or yield/rate are allocated proportionally based on the absolute value of the change related to average volume and average yield/rate.

Three Months Ended March 31,
2026 vs. 2025
Changes Due to
($ in thousands) Total Change Volume Yield/Rate
Interest-earning assets:
Interest-bearing cash and deposits with banks $ (9,286) $ (2,036) $ (7,250)
Resale agreements
15  —  15 
Debt securities:
AFS
12,645  20,363  (7,718)
HTM
(251) (198) (53)
Total debt securities 12,394  20,165  (7,771)
Loans:
C&I 3,901  31,212  (27,311)
CRE 4,537  14,239  (9,702)
Residential mortgage 9,993  12,732  (2,739)
Other consumer 35  29  6 
Total loans 18,466  58,212  (39,746)
Restricted equity securities 2,119  (264) 2,383 
Total interest and dividend income $ 23,708  $ 76,077  $ (52,369)
Interest-bearing liabilities:
Checking deposits $ (8,466) $ (593) $ (7,873)
Money market deposits (11,140) 10,070  (21,210)
Savings deposits (437) (98) (339)
Time deposits (16,526) 17,566  (34,092)
Total interest-bearing deposits
(36,569) 26,945  (63,514)
Short-term borrowings and federal funds purchased (2) 2  (4)
FHLB advances (13,862) (8,078) (5,784)
Repurchase agreements 3,213  3,230  (17)
Long-term debt and finance lease liabilities (64) (7) (57)
Total interest expense $ (47,284) $ 22,092  $ (69,376)
Change in net interest income $ 70,992   $ 53,985   $ 17,007  

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Noninterest Income

The following table presents the components of noninterest income for the first quarters of 2026 and 2025:

Three Months Ended March 31,

($ in thousands) 2026 2025 % Change

Commercial and consumer deposit-related fees $ 30,619  $ 27,075  13  %
Lending and loan servicing fees
26,070  26,230  (1) %
Foreign exchange income 15,447  15,837  (2) %
Wealth management fees 22,260  13,679  63  %
Customer derivative income and derivative mark-to-market adjustments:
Customer derivative income
4,595  5,539  (17) %
Derivative mark-to-market and credit valuation adjustments
934  (1,470) NM

Total customer derivative income and derivative mark-to-market adjustments
5,529  4,069  36  %
Net gains on AFS debt securities
616  131  370  %

Other investment income 2,956  2,262  31  %
Other (loss) income
(941) 2,819  NM
Total noninterest income $ 102,556   $ 92,102   11   %

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

NM - Not meaningful.

Noninterest income for the first quarter of 2026 was $103 million, a $10 million or 11% increase compared with the first quarter of 2025. The year-over-year increase was primarily due to increases in wealth management fees, commercial and consumer deposit-related fees, and customer derivative income and derivative mark-to-market adjustments, partially offset by other losses.

Commercial and consumer deposit-related fees were $31 million for the first quarter of 2026, a $4 million or 13% increase compared with the first quarter of 2025. The year-over-year increase was primarily due to higher commercial customer activity.

Wealth management fees were $22 million for the first quarter of 2026, a $9 million or 63% increase compared with the first quarter of 2025. The year-over-year increase primarily reflected higher customer demand for wealth management products such as fixed-rate corporate bonds and fixed annuities and increased commission and fees from new customer activity.

Customer derivative income and derivative mark-to-market adjustments were $6 million for the first quarter of 2026, a $1 million increase compared with the first quarter of 2025. The year-over-year increase primarily reflected favorable credit valuation adjustments, partially offset by lower customer activity.

Other losses were $941 thousand for the first quarter of 2026, compared with other income of $3 million in the first quarter of 2025. The decrease primarily reflected $5 million in lower of cost or market adjustments on loans held-for-sale recorded during the first quarter of 2026.

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Noninterest Expense

The following table presents the components of noninterest expense for the first quarters of 2026 and 2025:

Three Months Ended March 31,

($ in thousands) 2026 2025 % Change
Compensation and employee benefits $ 172,665  $ 146,435  18  %
Occupancy and equipment expense 18,248  15,689  16  %
Computer and software related expenses 14,747  13,314  11  %
Deposit insurance premiums and regulatory assessments 8,859  10,385  (15) %
Deposit account expense 7,533  9,042  (17) %

Other real estate owned (“OREO”) (income) expense
(264) 4,166  NM
Other operating expense 36,542  37,375  (2) %
Amortization of tax credit and Community Reinvestment Act (“CRA”) investments
21,984  15,742  40  %

Total noninterest expense $ 280,314   $ 252,148   11   %

NM - Not meaningful.

Noninterest expense was $280 million for the first quarter of 2026, a $28 million or 11% increase compared with the first quarter of 2025. The year-over-year increase was primarily due to increases in compensation and employee benefits and amortization of tax credit and CRA investments, partially offset by OREO income.

Compensation and employee benefits were $173 million for the first quarter of 2026, a $26 million or 18% increase compared with the first quarter of 2025. The increase was primarily driven by higher incentive compensation and staffing growth.

Occupancy and equipment expense was $18 million for the first quarter of 2026, a $3 million or 16% increase compared with the first quarter of 2025. The increase was primarily due to higher rental expense and increased depreciation related to a building purchase.

OREO income was $264 thousand for the first quarter of 2026, compared with OREO expense of $4 million for the first quarter of 2025. OREO income of $264 thousand for the first quarter of 2026 was primarily due to gains recorded on the sale of an OREO property, partially offset by OREO write-downs and operating expenses, compared with $4 million of OREO write-downs for the same prior year period.

Amortization of tax credit and CRA investments was $22 million for the first quarter of 2026, a $6 million or 40% increase compared with the first quarter of 2025. The year-over-year increase was primarily due to the timing of tax credit investments that closed in a given period.

Income Taxes

The following table presents income before income taxes, income tax expense and the effective tax rate for the first quarters of 2026 and 2025:

Three Months Ended March 31,
($ in thousands) 2026 2025 % Change
Income before income taxes $ 457,435  $ 391,155  17  %
Income tax expense $ 99,639  $ 100,885  (1) %
Effective tax rate 21.8  % 25.8  %

First quarter 2026 income tax expense was $100 million and the effective tax rate was 21.8%, compared with first quarter 2025 income tax expense of $101 million and an effective tax rate of 25.8%. The decreases in income tax expense and effective tax rate were primarily due to the release of valuation allowance associated with foreign tax credits and favorable adjustments driven by a lower California state tax apportionment, partially offset by higher pre-tax income and a partial derecognition of a purchased tax credit.
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Operating Segment Results

The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels through which customers are served, and the products and services provided. For a description of the Company’s internal management reporting process, including the segment cost allocation methodology, see Note 13 — Business Segments to the Consolidated Financial Statements in this Form 10-Q.

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

Consumer and Business Banking

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

The following table presents financial information for the Consumer and Business Banking segment for the periods indicated:

Three Months Ended March 31,
Change from 2025
($ in thousands) 2026 2025 $ %
Net interest income before provision for credit losses
$ 269,247  $ 269,733  $ (486) 0  %
Noninterest income 39,962  32,285  7,677  24  %
Total revenue before provision for credit losses
309,209  302,018  7,191  2  %
Provision for credit losses
9,185  7,685  1,500  20  %
Compensation and employee benefits 70,096  61,964  8,132  13  %
Other noninterest expense 62,005  57,192  4,813  8  %
Total noninterest expense 132,101  119,156  12,945  11  %
Segment income before income taxes 167,923  175,177  (7,254) (4) %
Income tax expense 47,059  52,089  (5,030) (10) %
Segment net income $ 120,864  $ 123,088  $ (2,224) (2) %
Average loans $ 21,034,978  $ 19,762,287  $ 1,272,691  6  %
Average deposits $ 35,048,413  $ 32,326,906  $ 2,721,507  8  %

Consumer and Business Banking segment net income decreased $2 million or 2% year-over-year to $121 million for the first quarter of 2026, primarily driven by an $8 million increase in compensation and employee benefits and a $5 million increase in other noninterest expense, partially offset by an $8 million increase in noninterest income. The increase in noninterest income was mainly driven by higher wealth management fee income in the first quarter of 2026. The compensation and employee benefits increase was primarily due to higher incentive compensation, increased wealth management commissions and staffing growth. The increase in other noninterest expense was mainly driven by higher allocated corporate overhead expenses.

Commercial Banking

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

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The following table presents financial information for the Commercial Banking segment for the periods indicated:

Three Months Ended March 31,
Change from 2025
($ in thousands) 2026 2025 $ %
Net interest income before provision for credit losses $ 261,286  $ 253,001  $ 8,285  3  %
Noninterest income 54,331  53,579  752  1  %
Total revenue before provision for credit losses
315,617  306,580  9,037  3  %
Provision for credit losses 27,007  40,779  (13,772) (34) %
Compensation and employee benefits 74,844  61,187  13,657  22  %
Other noninterest expense 36,470  42,318  (5,848) (14) %
Total noninterest expense 111,314  103,505  7,809  8  %
Segment income before income taxes 177,296  162,296  15,000  9  %
Income tax expense 49,657  48,271  1,386  3  %
Segment net income $ 127,639  $ 114,025  $ 13,614  12  %
Average loans $ 36,019,671  $ 33,211,037  $ 2,808,634  8  %
Average deposits (1)
$ 28,087,719  $ 26,129,141  $ 1,958,578  7  %

(1) Prior period balances have been reclassified for comparability due to a change in allocation methodology.

Commercial Banking segment net income increased $14 million or 12% year-over-year to $128 million for the first quarter of 2026, primarily driven by a $14 million decrease in provision for credit losses, an $8 million increase in net interest income and a $6 million decrease in other noninterest expense, partially offset by a $14 million increase in compensation and employee benefits. The net interest income increase was primarily due to commercial loan and deposit growth, leading to higher interest earnings and internal FTP credits from deposits in the first quarter of 2026, respectively. The decrease in provision for credit losses was driven by a more stable macroeconomic environment for C&I loans in the first quarter of 2026. The increase in compensation and employee benefits was primarily driven by higher incentive compensation and staffing growth. The decrease in other noninterest expense was mainly due to lower OREO and loan related expenses in the first quarter of 2026.

Treasury and Other

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

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The following table presents financial information for the Treasury and Other segment for the periods indicated:

Three Months Ended March 31,
Change from 2025

($ in thousands) 2026 2025 $ %
Net interest income before (reversal of) provision for credit losses
$ 140,660  $ 77,467  $ 63,193  82  %
Noninterest income 8,263  6,238  2,025  32  %
Total revenue before (reversal of) provision for credit losses
148,923  83,705  65,218  78  %
(Reversal of) provision for credit losses
(192) 536  (728) NM
Compensation and employee benefits 27,725  23,284  4,441  19  %
Other noninterest expense 9,174  6,203  2,971  48  %
Total noninterest expense 36,899  29,487  7,412  25  %
Segment income before income taxes 112,216  53,682  58,534  109  %
Income tax expense
2,923  525  2,398  NM
Segment net income $ 109,293  $ 53,157  $ 56,136  106  %
Average loans (1)
$ —  $ 364,387  $ (364,387) (100) %
Average deposits (2)
$ 4,411,502  $ 4,181,535  $ 229,967  5  %

NM — Not meaningful.
(1) Reallocated to the Commercial Banking and Consumer and Business Banking segments effective first quarter of 2026.
(2) Prior period balances have been reclassified for comparability due to a change in allocation methodology.

The Treasury and Other segment income before income taxes increased $59 million for the first quarter of 2026, primarily driven by a $63 million increase in net interest income, partially offset by a $4 million increase in compensation and employee benefits and a $3 million increase in other noninterest expense. The net interest income increase was mainly driven by lower net internal FTP credits for deposits to other business segments, lower interest expense on FHLB advances, and higher interest income on debt securities during the first quarter of 2026. The compensation and employee benefits increase was primarily driven by higher incentive compensation and staffing growth. The other noninterest expense increase was primarily driven by higher amortization of tax credit and CRA investments.

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

Balance Sheet Analysis

Debt Securities

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

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

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

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The following table presents the distribution of the Company’s AFS and HTM debt securities portfolio by amortized cost and fair value as of March 31, 2026 and December 31, 2025, and by credit ratings as of March 31, 2026:

March 31, 2026 December 31, 2025 Ratings as of March 31, 2026 (1)

($ in thousands) Amortized Cost Fair Value % of Fair Value Amortized Cost Fair Value % of Fair Value AAA/AA A BBB BB and Lower
AFS debt securities:
U.S. Treasury securities $ 1,256,350  $ 1,237,787  9 % $ 1,010,053  $ 993,913  7 % 100 % — % — % — %
U.S. government agency and U.S. government-sponsored enterprise debt securities 287,503  255,863  2 % 287,687  257,654  2 % 100 % — % — % — %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2)
11,282,319  11,095,099  79 % 10,544,278  10,397,991  79 % 100 % — % — % — %
Municipal securities 275,348  237,959  1 % 277,275  243,102  2 % 100 % — % — % — %
Non-agency mortgage-backed securities 629,132  548,367  4 % 667,195  584,735  4 % 97 % — % 3 % — %
Corporate debt securities 535,158  447,583  3 % 554,158  464,981  4 % — % 40 % 56 % 4 %
Foreign government bonds 249,263  240,395  2 % 247,249  238,455  2 % 46 % 54 % — % — %
Asset-backed securities 30,965  30,430  0 % 31,886  31,389  0 % 29 % 18 % 53 % — %

Total AFS debt securities $ 14,546,038   $ 14,093,483   100 % $ 13,619,781   $ 13,212,220   100 % 96 % 2 % 2 % 0 %

HTM debt securities:
U.S. Treasury securities $ 542,059  $ 526,048  21 % $ 540,666  $ 524,887  21 % 100 % — % — % — %
U.S. government agency and U.S. government-sponsored enterprise debt securities 1,007,937  855,461  35 % 1,007,055  860,134  35 % 100 % — % — % — %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3)
1,124,132  928,104  38 % 1,136,874  943,227  38 % 100 % — % — % — %
Municipal securities 184,850  143,390  6 % 185,463  151,498  6 % 100 % — % — % — %
Total HTM debt securities $ 2,858,978   $ 2,453,003   100 % $ 2,870,058   $ 2,479,746   100 % 100 % — % — % — %
Total debt securities $ 17,405,016   $ 16,546,486   $ 16,489,839   $ 15,691,966  

(1) Credit ratings represent independent assessments of the credit quality of debt securities. The Company determines the credit rating of a debt security based on the lowest rating assigned by any of the nationally recognized statistical rating organizations (“NRSROs”) that have rated the security. Investment grade debt securities are those with ratings similar to BBB- or above (as defined by NRSROs), and are generally considered by the rating agencies and market participants to be low credit risk. Ratings percentages are allocated based on fair value.
(2) Includes Government National Mortgage Association (“GNMA”) AFS debt securities with amortized cost and fair value both totaling $10.3 billion and $9.6 billion as of March 31, 2026 and December 31, 2025, respectively.
(3) Includes GNMA HTM debt securities totaling $77 million of amortized cost and $63 million of fair value as of March 31, 2026, and $79 million of amortized cost and $65 million of fair value as of December 31, 2025.

The Company’s AFS and HTM debt securities portfolios had an effective duration (defined as the sensitivity of the value of the portfolio to interest rate changes) of 3.5 and 5.7, respectively, as of March 31, 2026, compared with 3.0 and 5.9, respectively, as of December 31, 2025. The AFS debt securities’ effective duration increased primarily due to the purchase of new fixed‑rate AFS securities, coupled with the sale of floating‑rate AFS securities, while the decline in the HTM debt securities’ effective duration is mainly due to the portfolio run-off.

Available-for-Sale Debt Securities

AFS debt securities increased $881 million or 7% from December 31, 2025 to $14.1 billion as of March 31, 2026, primarily due to t he purchases of GNMA securities. The Company’s AFS debt securities are carried at fair value with non-credit related unrealized gains and losses, net of tax, reported in Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income. Pre-tax net unrealized losses on AFS debt securities were $453 million as of March 31, 2026, compared with $406 million as of December 31, 2025.

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Of the AFS debt securities with gross unrealized losses, substantially all were rated investment grade as of both March 31, 2026 and December 31, 2025. For additional information on the policies, methodologies and judgments used to determine the allowance for credit losses on AFS debt securities, see Item 8. Financial Statements — Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K and Note 4 — Securities to the Consolidated Financial Statements in this Form 10-Q.

Held-to-Maturity Debt Securities

All HTM debt securities were issued, guaranteed, or supported by the U.S. government or government-sponsored enterprises. Accordingly, the Company applied a zero credit loss assumption for these securities and no allowance for credit loss was recorded as of both March 31, 2026 and December 31, 2025.

For additional information on AFS and HTM securities, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K and Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 4 — Securities to the Consolidated Financial Statements in this Form 10-Q.

Loan Portfolio

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

The composition of the loan portfolio as of March 31, 2026 was similar to the composition as of December 31, 2025, as presented in the charts below.

Total loans held-for-investment of $58.1 billion as of March 31, 2026 increased $1.2 billion or 2% from December 31, 2025, primarily driven by growth in the C&I portfolio. For additional information on the Company’s loans held-for-investment outstanding balances, see Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

Commercial

The commercial loan portfolio, which includes C&I and total CRE loans, comprised 71% and 70% of total loans held-for-investment as of March 31, 2026 and December 31, 2025, respectively. The Company actively monitors the commercial lending portfolio for credit risk and reviews credit exposures for sensitivity to changing economic conditions.

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Commercial — Commercial and Industrial Loans. Total C&I loan commitments were $28.0 billion and $27.7 billion as of March 31, 2026 and December 31, 2025, respectively, with a utilization rate of 70% and 67% as of March 31, 2026 and December 31, 2025, respectively. Total C&I loans of $19.6 billion as of March 31, 2026 increased $900 million or 5% from December 31, 2025. The C&I loan portfolio includes loans and financing for businesses across a wide spectrum of industries. The Company offers a variety of C&I products, including but not limited to commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance and equipment financing. Additionally, the Company has a portfolio of broadly syndicated C&I loans, which represent revolving or term loan facilities that are marketed and sold primarily to institutional investors. This portfolio totaled $1.1 billion and $1.0 billion as of March 31, 2026 and December 31, 2025, respectively. The Company also has a portfolio of loans to non-depository financial institutions (“NDFI”), which totaled $8.3 billion and $7.6 billion as of March 31, 2026 and December 31, 2025, respectively. The NDFI portfolio is primarily included in the capital call, general & other, and financial services industries, and is diversified across business credit, private equity, and mortgage credit facilities. The majority of the C&I loans had variable interest rates as of both March 31, 2026 and December 31, 2025.

The C&I portfolio is well-diversified by industry. The Company monitors concentrations within the C&I loan portfolio by industry and customer exposure, and maintains exposure limits by industry and loan product. The following table presents the industry mix within the Company’s C&I loan portfolio as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025

($ in thousands) Amount % Amount %
Industry:
Capital call lending $ 2,370,253  12 % $ 1,997,835  (1)
11 %
Real estate investment & management 2,302,437  12 % 2,319,896  13 %
Media & entertainment 2,209,548  11 % 2,227,571  12 %
Financial services 1,312,053  7 % 1,160,853  6 %
Food production & distribution 1,306,790  7 % 1,109,996  6 %
Manufacturing & wholesale 1,199,819  6 % 1,162,245  6 %
Infrastructure & clean energy 1,099,668  6 % 1,113,387  6 %
Healthcare 779,488  4 % 703,769  4 %
Technology & telecommunications 693,287  4 % 679,036  4 %
Hospitality & leisure 653,102  3 % 646,926  3 %
Oil & gas 593,220  3 % 595,102  3 %
Equipment finance 499,933  3 % 447,117  2 %
Art finance 462,527  2 % 503,326  3 %
Consumer finance 290,576  1 % 262,728  1 %
General & other 3,778,252  19 % 3,720,968  (1)
20 %
Total C&I $ 19,550,953   100 % $ 18,650,755   100 %

(1) Prior period balances have been reclassified for comparability.

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

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The Company’s total CRE loan portfolio is well-diversified by property type with an average CRE loan size of $3 million as of both March 31, 2026 and December 31, 2025. The following table summarizes the Company’s total CRE loans by property type as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ in thousands) Amount % Weighted-avg. LTV (%) (1)
Amount % Weighted-avg. LTV (%) (1)

Property types:
Multifamily $ 5,129,247  24 % 51 % $ 5,112,328  24 % 50 %
Retail
4,550,048  21 % 47 % 4,509,328  21 % 47 %
Industrial
4,133,056  19 % 46 % 4,213,307  20 % 46 %
Hotel
2,539,812  12 % 51 % 2,482,765  12 % 51 %
Office
2,285,745  11 % 53 % 2,233,910  11 % 52 %
Healthcare
886,272  4 % 51 % 858,653  4 % 51 %
Construction and land 811,999  4 % 61 % 742,357  3 % 51 %
Other
1,096,124  5 % 49 % 1,109,125  5 % 49 %
Total CRE loans $ 21,432,303   100 % 50 % $ 21,261,773   100 % 49 %

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

The following tables provide a summary of the Company’s CRE, multifamily residential, and construction and land loans by geography as of March 31, 2026 and December 31, 2025. The distribution of the total CRE loan portfolio largely reflects the Company’s geographical branch footprint, which is primarily concentrated in California.

March 31, 2026
($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE %
Geographic markets:
Southern California $ 8,054,331  52 % $ 2,390,737  47 % $ 293,182  36 % $ 10,738,250  50 %
Northern California 2,752,523  18 % 891,438  17 % 144,123  18 % 3,788,084  18 %
California 10,806,854  70 % 3,282,175  64 % 437,305  54 % 14,526,334  68 %
Texas 1,137,455  7 % 540,863  11 % 156,605  19 % 1,834,923  8 %
New York 820,247  5 % 331,631  7 % 52,617  6 % 1,204,495  6 %
Washington 523,702  3 % 156,325  3 % 28,912  4 % 708,939  3 %
Arizona 335,618  2 % 205,446  4 % 40,139  5 % 581,203  3 %
Nevada 311,372  2 % 157,130  3 % 4,453  1 % 472,955  2 %
Other markets 1,555,809  11 % 455,677  8 % 91,968  11 % 2,103,454  10 %
Total loans $ 15,491,057   100 % $ 5,129,247   100 % $ 811,999   100 % $ 21,432,303   100 %

December 31, 2025
($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE %
Geographic markets:
Southern California $ 7,908,374  51 % $ 2,387,149  47 % $ 252,265  34 % $ 10,547,788  50 %
Northern California 2,760,043  18 % 914,479  18 % 149,090  20 % 3,823,612  18 %
California 10,668,417  69 % 3,301,628  65 % 401,355  54 % 14,371,400  68 %
Texas 1,129,088  7 % 488,276  10 % 154,241  21 % 1,771,605  8 %
New York 831,276  6 % 349,909  7 % 35,397  5 % 1,216,582  6 %
Washington 504,643  3 % 158,186  3 % 14,036  2 % 676,865  3 %
Arizona 339,272  2 % 205,264  4 % 38,192  5 % 582,728  3 %
Nevada 321,332  2 % 160,103  3 % 883  0 % 482,318  2 %
Other markets 1,613,060  11 % 448,962  8 % 98,253  13 % 2,160,275  10 %
Total loans $ 15,407,088   100 % $ 5,112,328   100 % $ 742,357   100 % $ 21,261,773   100 %

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The percentage of total CRE loans located in California was 68% as of both March 31, 2026 and December 31, 2025. Changes in California’s economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan losses. For additional information related to the higher degree of risk from a downturn in California’s economic and real estate markets, see Item 1A. Risk Factors — Risks Related to Geographic and Political Uncertainties and Risks Related to Financial Matters in the Company’s 2025 Form 10-K.

Commercial — Commercial Real Estate Loans. The Company focuses on providing financing to experienced real estate investors and developers with moderate levels of leverage, many of whom are long-time customers of the Bank. The Company seeks to underwrite loans with conservative standards for cash flows, debt service coverage and LTV. Owner-occupied properties comprised 20% of the CRE loans as of both March 31, 2026 and December 31, 2025. The remainder were non-owner-occupied properties, where 50% or more of the debt service for the loan is typically provided by rental income from an unaffiliated third party.

Interest rates on CRE loans may be fixed, variable or hybrid. The Company offers derivative hedging products to our customers to manage their interest rate risks. As of March 31, 2026, of the 58% of our CRE portfolio that had variable rates, 51% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2025, of the 58% of our CRE portfolio that had variable rates, 52% had customer-level interest rate derivative contracts in place.

Commercial — Multifamily Residential Loans. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units. The Company offers a variety of first lien mortgages, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust annually after an initial fixed rate period of three to ten years. The Company also offers hedging products to our customers to manage their interest rate risks. As of March 31, 2026, of the 52% of our multifamily residential loan portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2025, of the 51% of our multifamily residential portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place.

Commercial — Construction and Land Loans. Construction and land loans provide financing for a portfolio of projects diversified by real estate property type. Construction loan exposure was comprised of $590 million in loans outstanding, and $439 million in unfunded commitments as of March 31, 2026, compared with $544 million in loans outstanding, and $419 million in unfunded commitments as of December 31, 2025. Land loans totaled $222 million and $198 million as of March 31, 2026 and December 31, 2025, respectively.

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Consumer

Residential mortgage loans are primarily originated through the Bank’s branch network. The average residential mortgage loan size was $439 thousand as of both March 31, 2026 and December 31, 2025. The following tables summarize the Company’s SFR and HELOC loan portfolios by geography and lien priority as of March 31, 2026 and December 31, 2025:

March 31, 2026
($ in thousands) SFR
% HELOCs % Total Residential Mortgage %
Geographic markets:
Southern California $ 6,110,857  40 % $ 926,482  48 % $ 7,037,339  41 %
Northern California 2,046,569  14 % 411,296  21 % 2,457,865  15 %
California 8,157,426  54 % 1,337,778  69 % 9,495,204  56 %
New York 4,030,230  27 % 289,786  15 % 4,320,016  25 %
Washington 780,433  5 % 183,412  9 % 963,845  6 %
Massachusetts 574,500  4 % 69,829  4 % 644,329  4 %
Georgia 530,564  4 % 24,460  1 % 555,024  3 %
Nevada 510,865  3 % 39,071  2 % 549,936  3 %
Texas 513,764  3 % —  — % 513,764  3 %
Other markets 21,927  0 % 1,531  0 % 23,458  0 %
Total $ 15,119,709   100 % $ 1,945,867   100 % $ 17,065,576   100 %
Lien priority:
First mortgage $ 15,119,709  100 % $ 1,350,924  69 % $ 16,470,633  97 %
Junior lien mortgage —  — % 594,943  31 % 594,943  3 %
Total $ 15,119,709   100 % $ 1,945,867   100 % $ 17,065,576   100 %
SFR portfolio type:

Traditional portfolio
$ 13,727.484  91 % $ —  — % $ 13,727.484  91 %
Bridge to Home Ownership (“BTHO”) portfolio
1,392.225  9 % —  — % 1,392.225  9 %
Total $ 15,119.709   100 % $ —   — % $ 15,119.709   100 %

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December 31, 2025
($ in thousands) SFR
% HELOCs % Total Residential Mortgage %
Geographic markets:
Southern California $ 6,031,124  40 % $ 914,803  48 % $ 6,945,927  41 %
Northern California 2,026,767  14 % 392,461  20 % 2,419,228  14 %
California 8,057,891  54 % 1,307,264  68 % 9,365,155  55 %
New York 4,067,708  27 % 286,995  15 % 4,354,703  26 %
Washington 761,739  5 % 188,146  10 % 949,885  6 %
Massachusetts 566,462  4 % 68,375  4 % 634,837  4 %
Georgia 520,039  3 % 21,500  1 % 541,539  3 %
Nevada 493,670  3 % 38,072  2 % 531,742  3 %
Texas 513,038  4 % —  — % 513,038  3 %
Other markets 22,002  0 % 1,545  0 % 23,547  0 %
Total $ 15,002,549   100 % $ 1,911,897   100 % $ 16,914,446   100 %
Lien priority:
First mortgage $ 15,002,549  100 % $ 1,337,066  70 % $ 16,339,615  97 %
Junior lien mortgage —  — % 574,831  30 % 574,831  3 %
Total $ 15,002,549   100 % $ 1,911,897   100 % $ 16,914,446   100 %
SFR portfolio type:

Traditional portfolio
$ 13,692.025  91 % $ —  — % 13,692.025  91 %
BTHO portfolio
1,310.524  9 % —  — % 1,310.524  9 %
Total $ 15,002.549   100 % $ —   — % $ 15,002.549   100 %

Consumer — SFR Loans — Traditional Portfolio. The Company offers a variety of SFR mortgage loan programs, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust on a regular basis, typically annually, after an initial fixed rate period. The Company was in a first lien position in all of its SFR loans as of both March 31, 2026 and December 31, 2025. Many of these loans are reduced documentation loans, for which a substantial down payment is required, resulting in a low LTV ratio at origination, typically 60% or less. The weighted-average LTV ratio w as 48% and 49% a s of March 31, 2026 and December 31, 2025, respectively. These loans have historically experienced very low delinquency and loss rates.

Consumer — SFR Loans — BTHO Portfolio. The Company also underwrites a BTHO program aimed at expanding home ownership access across creditworthy low-to-moderate income borrowers. The Company is in a first lien positions in all of its BTHO loans and the weighted average LTV was 87% and 88%, as of March 31, 2026 and December 31, 2025, respectively.

Consumer — Home Equity Lines of Credit. Total HELOC commitments were $5.6 billion and $5.5 billion as of March 31, 2026 and December 31, 2025, respectively, with a utilization rate of 35% as of both dates. Substantially all of the Company’s unfunded HELOC commitments are unconditionally cancellable. The Company was in a first lien position for 69% and 70% of total outstanding HELOCs as of March 31, 2026 and December 31, 2025, respectively. Many of these loans are reduced documentation loans, which have a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 45% and 46% as of March 31, 2026 and December 31, 2025, respectively. As a result, these loans have historically experienced low delinquency and loss rates. Substantially all of the Company’s HELOCs were variable-rate loans as of both March 31, 2026 and December 31, 2025.

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

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Foreign Outstandings

The Company’s international branches, which include the branch in Hong Kong and the subsidiary bank’s branches in China, are subject to the general risks inherent in conducting business in foreign countries, such as regulatory, economic and political uncertainties, and foreign currency exchange rate risks. The following table presents the major financial assets held in the Company’s international branches as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ in thousands) Amount % of Total Consolidated Assets Amount % of Total Consolidated Assets
Hong Kong branch:
Cash and cash equivalents $ 728,356  1 % $ 860,332  1 %

AFS debt securities (1)
$ 674,934  1 % $ 684,513  1 %
Loans held-for-investment (2)
$ 1,329,325  2 % $ 1,133,442  1 %
Total assets $ 2,735,073  3 % $ 2,692,309  2 %
China subsidiary bank branches:

Cash and cash equivalents $ 660,904  1 % $ 640,986  1 %

AFS debt securities (3)
$ 130,507  0 % $ 128,600  0 %
Loans held-for-investment (2)
$ 1,278,595  2 % $ 1,223,236  2 %
Total assets $ 2,063,446  2 % $ 2,012,751  3 %

(1) Comprised of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, U.S. Treasury securities, and foreign government bonds as of both March 31, 2026 and December 31, 2025.
(2) Primarily comprised of C&I loans as of both March 31, 2026 and December 31, 2025.
(3) Comprised of foreign government bonds as of both March 31, 2026 and December 31, 2025.

The following table presents the total revenue generated by the Company’s international branches for the first quarters of 2026 and 2025:

Three Months Ended March 31,
2026 2025
($ in thousands) Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue
Hong Kong branch:

Total revenue $ 21,188  3 % $ 17,813  3 %
China subsidiary bank branches:

Total revenue $ 6,148  1 % $ 7,752  1 %

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Deposits

Deposits are the Company’s primary source of funding, the cost of which has a significant impact on the Company’s net interest income and net interest margin. Additional funding is provided by short- and long-term borrowings, and long-term debt. See Item 2. MD&A — Risk Management — Liquidity Risk Management in this Form 10-Q for a discussion of the Company’s liquidity management. The following table summarizes the Company’s deposits by product type as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025 Change
($ in thousands) Amount % Amount % $ %
Deposits by product:

Noninterest-bearing demand $ 17,480,959  25  % $ 16,697,099  25  % $ 783,860  5  %
Interest-bearing checking 8,069,468  12  % 7,989,255  12  % 80,213  1  %
Money market 16,226,097  24  % 15,439,729  23  % 786,368  5  %
Savings 1,731,547  2  % 1,671,804  2  % 59,743  4  %

Time deposits 25,411,484  37  % 25,284,814  38  % 126,670  1  %
Total deposits $ 68,919,555   100   % $ 67,082,701   100   % $ 1,836,854   3   %

The Company’s strategy is to grow and retain relationship-based deposits to provide a stable and low-cost source of funding and liquidity. The Company offers a wide variety of deposit products to meet the needs of its consumer and commercial customers. As a result, we believe our deposit base is seasoned, stable and well-diversified. Total deposits of $68.9 billion as of March 31, 2026 increased $1.8 billion or 3% from December 31, 2025, primarily due to growth in money market and noninterest-bearing demand deposits.

The following table provides a breakdown of the Company’s deposits by segment and region as of March 31, 2026 and December 31, 2025:

Change

($ in thousands)
March 31, 2026 December 31, 2025
$ %
Deposits by segment/region:

Consumer and Business Banking - U.S. (1)
$ 35,847,814  $ 34,494,368  $ 1,353,446  4  %
Commercial Banking - U.S. (1)
24,829,606  24,115,647  (2)
713,959  3  %
International Branches (3)
3,906,121  3,875,631  30,490  1  %
Treasury and Other - U.S. (4)
4,336,014  4,597,055  (2)
(261,041) (6) %
Total deposits $ 68,919,555   $ 67,082,701   $ 1,836,854   3   %

(1) Excludes deposits presented under International Branches.
(2) Prior period balances have been reclassified for comparability due to a change in allocation methodology.
(3) Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.
(4) Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.

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Customer deposit accounts in the U.S. offices are insured by the Federal Deposit Insurance Corporation (“FDIC”) for up to $250,000 per depositor, per ownership category. Management believes that presenting uninsured domestic deposits with an adjustment to exclude collateralized and affiliate deposits provides a more accurate view of the deposits at risk, given that collateralized deposits are secured, and affiliate deposits are not customer-facing and are eliminated in consolidation. The following table summarizes the Company’s uninsured domestic deposit balances reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report as of March 31, 2026 and December 31, 2025, after certain adjustments:

($ in thousands) March 31, 2026 December 31, 2025
Uninsured deposits, per regulatory requirements (1)
$ 35,249,660  $ 33,431,037 
Less: Collateralized deposits
(4,436,099) (4,464,567)
Affiliate deposits (65,579) (131,106)
Uninsured deposits, excluding collateralized and affiliate deposits (a) $ 30,747,982   $ 28,835,364  

Total domestic deposits per Call Report (b) $ 65,236,217   $ 63,460,378  
Uninsured deposits, excluding collateralized and affiliate deposits, ratio (a)/(b)
47   % 45   %

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

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

Capital

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

The Company’s stockholders’ equity increased $100 million or 1% from $8.9 billion as of December 31, 2025 to $9.0 billion as of March 31, 2026. The increase was primarily due to $358 million of net income, partially offset by $123 million from open-market common stock repurchases and tax withheld in the form of stock repurchases on vested restricted stock units, $111 million of cash dividends declared and $43 million of other comprehensive loss. For other factors that contributed to the changes in stockholders’ equity, refer to Item 1. Consolidated Financial Statements — Consolidated Statement of Changes in Stockholders’ Equit y in this Form 10-Q.

On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to $300 million of East West common stock, which will remain valid through December 31, 2026. The Company repurchased $99 million and $85 million of its common stock during the first quarters of 2026 and 2025, respectively. As of March 31, 2026, $117 million of the share repurchase authorization remained available.

The Company paid a cash dividend of $0.80 and $0.60 per share during the first quarters of 2026 and 2025, respectively. In April 2026, the Company’s Board of Directors declared a second quarter 2026 cash dividend of $0.80 per share. The dividend is payable on May 18, 2026, to stockholders of record as of May 4, 2026.

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Regulatory Capital and Ratios

The federal banking agencies have risk-based capital adequacy requirements intended to ensure that banking organizations maintain capital that is commensurate with the degree of risk associated with their operations. The Company and the Bank are each subject to these regulatory capital adequacy requirements. See Item 1. Business — Supervision and Regulation — Regulatory Capital Requirements in the Company’s 2025 Form 10-K for additional details.

The following table presents the Company’s and the Bank’s capital ratios as of March 31, 2026 and December 31, 2025 under the Basel III Capital Rules, and those required by regulatory agencies for capital adequacy and well-capitalized classification purposes:

Basel III Capital Rules
March 31, 2026 December 31, 2025
Company Bank Company Bank Minimum Regulatory Requirements Minimum Regulatory Requirements including Capital Conservation Buffer Well-Capitalized Requirements
Risk-based capital ratios:
Common Equity Tier 1 (“CET1”) capital (1)
15.1 % 13.8 % 15.1 % 13.9 % 4.5 % 7.0 % 6.5 %
Tier 1 capital (2)
15.1 % 13.8 % 15.1 % 13.9 % 6.0 % 8.5 % 8.0 %
Total capital 16.4 % 15.1 % 16.4 % 15.1 % 8.0 % 10.5 % 10.0 %
Tier 1 leverage (1)
11.0 % 10.0 % 10.9 % 10.0 % 4.0 % 4.0 % 5.0 %

(1) CET1 capital and Tier 1 leverage well-capitalized requirements apply to the Bank only. There are no well-capitalized requirements on CET1 capital ratio or Tier 1 leverage ratio for bank holding companies.
(2) Well-capitalized Tier 1 capital ratio requirements for the Company and the Bank are 6.0% and 8.0%, respectively.

The Company is committed to maintaining strong capital levels to assure its investors, customers and regulators that the Company and the Bank are financially sound. As of both March 31, 2026 and December 31, 2025, the Company and the Bank continued to exceed all “well-capitalized” capital requirements and the minimum capital requirements under the Basel III Capital Rules. Total risk-weighted assets increased $799 million from December 31, 2025 to $58.6 billion as of March 31, 2026, primarily due to loan growth.

Risk Management

Overview

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

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

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

Credit Risk Management

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

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

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

Credit Quality

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

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The following table presents the Company’s criticized loans as of March 31, 2026 and December 31, 2025:

Change
($ in thousands) March 31, 2026 December 31, 2025 $ %
Criticized loans:
Special mention loans $ 316,230  $ 344,876  $ (28,646) (8) %
Classified loans (1)
913,386  796,273  117,113  15  %
Total criticized loans (2)
$ 1,229,616   $ 1,141,149   $ 88,467   8   %

Special mention loans to loans held-for-investment 0.54  % 0.61  %
Classified loans to loans held-for-investment 1.57  % 1.40  %
Criticized loans to loans held-for-investment 2.12  % 2.01  %

(1) Consists of substandard, doubtful and loss categories.
(2) Excludes loans held-for-sale.

Criticized loans increased $88 million or 8%, to $1.2 billion during the first quarter of 2026, primarily driven by increases in classified C&I and CRE loans, and special mention C&I loans, partially offset by a decrease in special mention CRE loans.

Nonperforming Assets

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

The following table presents nonperforming assets information as of March 31, 2026 and December 31, 2025:

Change
($ in thousands) March 31, 2026 December 31, 2025 $ %
Commercial:
C&I $ 61,063  $ 52,244  $ 8,819  17  %
CRE:
CRE 36,495  38,546  (2,051) (5) %
Multifamily residential 275  292  (17) (6) %
Construction and land 19,334  27,810  (8,476) (30) %
Total CRE 56,104  66,648  (10,544) (16) %
Consumer:
Residential mortgage:
SFR
34,494  29,641  4,853  16  %
HELOCs 28,958  17,167  11,791  69  %
Total residential mortgage 63,452  46,808  16,644  36  %
Other consumer 29  142  (113) (80) %
Total nonaccrual loans 180,648  165,842  14,806  9  %
OREO, net 14,917  21,183  (6,266) (30) %

Nonperforming loans held-for-sale
20,759  20,976  (217) (1) %
Total nonperforming assets $ 216,324   $ 208,001   $ 8,323   4   %
Nonperforming assets to total assets
0.26 % 0.26 %
Nonaccrual loans to loans held-for-investment 0.31 % 0.29 %
Allowance for loan and lease losses (“ALLL”) to nonaccrual loans
463 % 488 %

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Loans are generally placed on nonaccrual status at the earlier of when they become 90 days past due or when the full collection of principal or interest becomes uncertain, regardless of the length of time past due. Collectability is generally assessed based on economic and business conditions, the borrower’s financial condition, and the adequacy of collateral, if any. For additional details regarding the Company’s nonaccrual loan policy, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment  to the Consolidated Financial Statements in the Company’s 2025 Form 10-K.

Nonaccrual loans of $181 million as of March 31, 2026 increased $15 million or 9% from December 31, 2025, primarily due to higher residential mortgage and C&I nonaccrual loans, partially offset by C&I charge-offs, and transfers to OREO. As of March 31, 2026, $22 million or 12% of nonaccrual loans were less than 90 days delinquent. In comparison, $27 million or 16% of nonaccrual loans were less than 90 days delinquent as of December 31, 2025.

The following table presents the accruing loans past due by portfolio segment as of March 31, 2026 and December 31, 2025:

Total Accruing Past Due Loans (1)
Change Percentage of Loan Class

($ in thousands) March 31,
2026 December 31,
2025 $ % March 31,
2026 December 31,
2025
Commercial:
C&I $ 18,857  $ 26,044  $ (7,187) (28) % 0.10  % 0.14  %
CRE:
CRE 45,231  13,994  31,237  223  % 0.29  % 0.09  %
Multifamily residential 5,297  1,253  4,044  323  % 0.10  % 0.02  %

Total CRE 50,528  15,247  35,281  231  % 0.24  % 0.07  %
Total commercial 69,385   41,291   28,094   68   % 0.17   % 0.10   %
Consumer:
Residential mortgage:
SFR
75,331  73,684  1,647  2  % 0.50  % 0.49  %
HELOCs 23,558  34,650  (11,092) (32) % 1.21  % 1.81  %
Total residential mortgage 98,889  108,334  (9,445) (9) % 0.58  % 0.64  %
Other consumer 97  77  20  26  % 0.19  % 0.15  %
Total consumer 98,986   108,411   (9,425) (9) % 0.58   % 0.64   %
Total $ 168,371   $ 149,702   $ 18,669   12   % 0.29   % 0.26   %

(1) There were no accruing loans past due 90 days or more as of both March 31, 2026 and December 31, 2025.

Allowance for Credit Losses

The Company maintains its allowance for credit losses at a level it believes is sufficient to provide appropriate reserves to absorb estimated future credit losses in accordance with GAAP. For additional information on the policies, methodologies and judgments used to determine the allowance for credit losses, see Item 7. MD&A — Critical Accounting Estimates and Item 8. Financial Statements — Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q.

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The following table presents the allowance for credit losses allocated by loan portfolio segments, debt securities and unfunded credit commitments as of March 31, 2026 and December 31, 2025:

March 31, 2026 December 31, 2025
($ in thousands) Allowance Allocation % of Total Loan Class
Allowance Allocation % of Total Loan Class

ALLL

Commercial:
C&I $ 483,384  2.47  % $ 475,613  2.55 %
CRE:
CRE 231,802  1.50  % 221,494  1.44 %
Multifamily residential 39,446  0.77  % 36,555  0.72 %
Construction and land 17,170  2.11  % 15,468  2.08 %
Total CRE 288,418  1.35  % 273,517  1.29 %
Total commercial 771,802   1.88   % 749,130   1.88 %
Consumer:
Residential mortgage:
SFR — traditional
19,230  0.14  % 19,040  0.14 %
SFR — BTHO
37,653  2.70  % 34,423  2.63 %
HELOCs 5,899  0.30  % 5,804  0.30 %
Total residential mortgage 62,782  0.37  % 59,267  0.35 %
Other consumer 1,290  2.48  % 1,376  2.69 %
Total consumer 64,072   0.37   % 60,643   0.36 %
Total ALLL
$ 835,874   1.44   % $ 809,773   1.42 %
Allowance for debt securities
$ —   $ 1,900  
Allowance for unfunded credit commitments $ 47,005   $ 48,690  
Total allowance for credit losses $ 882,879   $ 860,363  

Three Months Ended March 31,
2026 2025
Average loans held-for-investment $ 57,033,131  $ 53,337,711 
Net charge-offs
$ 12,119  $ 15,281 
Annualized net charge-offs to average loans held-for-investment 0.09  % 0.12  %

Liquidity Risk Management

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

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

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

Liquidity Sources — Deposits. The Company’s primary source of funding is from deposits, generated by its banking business, which we believe is a relatively stable and low-cost source of funding. Our loans are funded by deposits, which amounted to $68.9 billion as of March 31, 2026, compared with $67.1 billion as of December 31, 2025. The Company’s loan-to-deposit ratio was 84% and 85% as of March 31, 2026 and December 31, 2025, respectively. See Item 2. — MD&A — Balance Sheet Analysis — Deposits in this Form 10-Q for further details related to the Company’s deposits.

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

Sources of funding included $3.0 billion of FHLB advances as of both March 31, 2026 and December 31, 2025. As of March 31, 2026, the FHLB advances were comprised of $3.0 billion of term advances that had fixed and floating interest rates ranging from 3.78% to 3.95% with remaining maturities between 10 days and 1.3 years. As of March 31, 2026, the Company had $494 million in gross repurchase agreements, which matured on April 23, 2026. The Company did not have any repurchase agreements as of December 31, 2025. The Company also held long-term debt of $32 million in the form of junior subordinated debt as of both March 31, 2026 and December 31, 2025, which qualifies as Tier 2 capital for regulatory capital purposes.

The Company has pledged loans and/or debt securities to the FHLB and the FRB discount window as collateral, as well as prepositioned unpledged debt securities as collateral for overnight repurchase agreements at the FRB SRF. The Company has established operational procedures to enable borrowing against these assets, including regular monitoring of the total pool of loans and debt securities eligible as collateral. Eligibility of collateral is defined in guidelines from the FHLB and FRB and is subject to change at their discretion. The Company operated within its established risk limits for liquidity measures as of March 31, 2026. Accordingly, the Company believes the cash and cash equivalents, and available collateralized borrowing capacity described below provide sufficient liquidity above its expected cash needs.

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The Company maintains its sources of liquidity in the form of cash and cash equivalents, prepositioned and unpledged debt securities, and secured borrowing capacity with eligible loans and debt securities pledged as collateral. The following table presents the Company’s total available liquidity as of March 31, 2026 and December 31, 2025:

Change
($ in thousands) March 31, 2026 December 31, 2025 $ %
Cash and cash equivalents $ 4,438,870  $ 4,188,139  $ 250,731  6  %
Interest-bearing deposits with banks 10,498  16,189  (5,691) (35) %
Unused secured borrowing capacity from:

FRB
14,040,968  13,235,104  805,864  6  %
FHLB 11,685,898  11,849,692  (163,794) (1) %
Fair value of prepositioned and unpledged securities

Securities prepositioned for FRB SRF
6,920,861  4,822,741  2,098,120  44  %
Other unpledged securities
5,046,207  6,659,487  (1,613,280) (24) %
Total available liquidity
$ 42,143,302   $ 40,771,352   $ 1,371,950   3   %

The Company’s total available liquidity increased to $42.1 billion as of March 31, 2026, compared with $40.8 billion as of December 31, 2025. The increase in available liquidity was primarily due to an increase in loans pledged and growth of the securities portfolio.

Cash Requirements. In the ordinary course of business, the Company enters into contractual obligations that require future cash payments, including funding for customer deposit withdrawals, repayments for short- and long-term borrowings, and other cash commitments. For additional information on these obligations, see Note 9 — Deposits to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net and Note 8 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in this Form 10-Q.

The Company also has off-balance sheet arrangements which represent transactions that are not recorded on the Consolidated Balance Sheet. The Company’s off-balance sheet arrangements include (1) commitments to extend credit, such as loan commitments, commercial letters of credit for foreign and domestic trade, standby letters of credit (“SBLCs”), and financial guarantees, to meet the financing needs of its customers, (2) future interest obligations related to customer deposits and the Company’s borrowings, and (3) transactions with unconsolidated entities that provide financing, liquidity, market risk or credit risk support to the Company, or engage in leasing, hedging or research and development services with the Company. A portion of these commitments are expected to expire unused or only partially used, therefore the total commitment amounts do not necessarily represent future cash requirements. The Company does not expect the total commitment amounts as of March 31, 2026 to have a material current or future impact on the Company’s financial conditions or results of operations. Additional information about the Company’s loan commitments, commercial letters of credit and SBLCs is provided in Note 9 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q.

The Consolidated Statement of Cash Flows in this Form 10-Q summarizes the Company’s sources and uses of cash by type of activity for the first quarters of 2026 and 2025. Excess cash generated by operating and investing activities may be used to repay outstanding debt or invest in liquid assets.

Liquidity for East West. In addition to bank level liquidity management, the Company manages liquidity at the parent company level for various operating needs including payment of dividends, repurchases of common stock, principal and interest payments on its borrowings, acquisitions and additional investments in its subsidiaries. East West’s primary source of liquidity is from cash dividends distributed by its subsidiary, East West Bank. The Bank is subject to various statutory and regulatory restrictions on its ability to pay dividends as discussed in Item 1 . Business — Supervision and Regulation — Dividends and Other Transfers of Funds in the Company’s 2025 Form 10-K. East West held $675 million in cash and cash equivalents and balances due from the Bank as of March 31, 2026, and $664 million in cash and cash equivalents as of December 31, 2025. Management believes that East West has sufficient sources of liquidity to meet the projected cash obligations for the coming year.

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

As of March 31, 2026, the Company believes it has adequate liquidity resources to conduct operations and meet other needs in the ordinary course of business, and is not aware of any events that are reasonably likely to have a material adverse effect on its liquidity, capital resources or operations. For more details on how economic conditions may impact our liquidity, see Item 1A . Risk Factors in the Company’s 2025 Form 10-K.

Market Risk Management

Market risk refers to the risk of potential loss due to adverse movements in market risk factors, including interest rates, foreign exchange rates, commodity prices, and credit spreads. The Company is primarily exposed to interest rate risk through its core business activities of extending loans and acquiring deposits. There have been no significant changes in our risk management practices as described in Item 7 . MD&A — Market Risk Management in the Company’s 2025 Form 10-K.

Interest Rate Risk Management

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

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

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

The Company measures and monitors interest rate risk exposure through various risk management tools, which include a simulation model that performs monthly interest rate sensitivity analyses under multiple interest rate scenarios against a baseline. The simulation model incorporates the market’s forward rate expectations and the Company’s earning assets and liabilities. The Company uses a dynamic balance sheet, incorporating expected forward growth and/or deposit product mix shift to perform the interest rate sensitivity analyses. The simulated interest rate scenarios include an instantaneous parallel shift in the yield curve and a gradual parallel shift in the yield curve (“linear rate ramp”). In addition, the Company also performs simulations using other alternative interest rate scenarios, including various permutations of the yield curve flattening, steepening or inverting. The Company uses the results of these simulations to formulate and gauge strategies to achieve a desired risk profile within its capital and liquidity guidelines.

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The Company’s net interest income volatility simulations are based on a dynamic balance sheet approach and market forward rates to better reflect the interest rate risk on the Company’s financial statements. The Company’s simulation scenarios use parallel shocks for both instantaneous and gradual net interest income simulations, as well as economic value of equity (“EVE”) simulations. These simulations conform with industry-standard scenario definitions and enhance interpretability and comparability.

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

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

The Company employs a variety of quantitative and qualitative approaches to capture historical deposit repricing and balance behaviors. These historical observations are performed at a granular level based on key product characteristics, including distinctions for brokered, public, and large commercial deposits, which are then combined with forward-looking market expectations and the competitive landscape to generate the deposit repricing and balance forecasting models. The Company uses these deposit repricing models to forecast deposit interest expense. The repricing models provide sufficient granularity to reflect key behavioral differences across product and customer types. The deposit beta, which defines the sensitivity of deposit rates to changes in the effective federal funds rate, is a key parameter of the deposit rate forecast. As of March 31, 2026, the Company assumed a weighted-average beta of approximately 50%.

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

Twelve-Month Net Interest Income Simulation

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

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

Net Interest Income Volatility
Change in Interest Rates (in bps) March 31, 2026 December 31, 2025
+200 Gradual rate ramp 3.3  % 3.4  %
+100 Gradual rate ramp 1.7  % 1.7  %
-100 Gradual rate ramp (1.8) % (1.5) %
-200 Gradual rate ramp (3.3) % (3.0) %