Business Wire | Jan 27, 2022 08:00AM EST

East West Bancorp Reports Record Net Income for 2021 of $873 Million and Diluted Earnings Per Share of $6.10, Both Up by 54% From the Prior Year; Increases Dividend by 21%

Jan. 27, 2022

PASADENA, Calif.--(BUSINESS WIRE)--Jan. 27, 2022--East West Bancorp, Inc. ("East West" or the "Company") (Nasdaq: EWBC), parent company of East West Bank, today reported its financial results for the full year and fourth quarter of 2021. For the full year 2021, net income was $873.0 million, or $6.10 per diluted share. For the fourth quarter of 2021, net income was $217.8 million, or $1.52 per diluted share.

"East West achieved record earnings in 2021. Our record total revenue of $1.8 billion grew by 13% year-over-year and our record net income of $873 million grew by 54%," stated Dominic Ng, Chairman and Chief Executive Officer of East West. "We delivered an attractive return on assets of 1.5% and a return on tangible equity1 of 17.2% in 2021. Our outstanding financial performance reflected robust net interest income and fee income growth, industry-leading efficiency, and substantially improved asset quality. Year-over-year, nonperforming assets decreased by 56% and criticized loans declined by 32%."

"Total loans reached a record $41.7 billion as of December 31, 2021. Loans grew by $4.3 billion or 12% year-over-year, excluding the impact of the Paycheck Protection Program. Total deposits grew to $53.4 billion as of December 31, 2021, an increase of $8.5 billion or 19% year-over-year, driven by strong growth in noninterest-bearing demand deposits. Demand deposits now make up 43% of our deposits, up from 36% a year ago."

"We wish to thank our team of more than 3,000 associates who work tirelessly to support our customers in their banking needs. Our ability to deliver strong financial performance year in, year out is a direct result of the hard work and dedication of our associates and their commitment to serve our customers with excellence," continued Ng.

"We are entering 2022 from a position of strength and are pleased to announce a 21% increase in our common stock dividend. We expect to deliver yet another year of outstanding profitability for our shareholders, supported by solid loan and deposit growth, healthy capital levels, and the asset sensitive nature of our balance sheet in a rising interest rate environment," concluded Ng.

FINANCIAL HIGHLIGHTS

Twelve Months Ended Year-over-Year Change

($ in millions) December 31, 2021 $ %

Total Loans (incl. PPP) $ 41,694 $ 3,302 9 %

Total Loans (excl. PPP) 41,160 4,336 12

Total Deposits 53,351 8,488 19

Total Revenue $ 1,817 $ 205 13 %

Net Income 873 305 54

1

See reconciliation of GAAP to non-GAAP financial measures in Table 13.

BALANCE SHEET

* Total Assets - Total assets reached $60.9 billion as of December 31, 2021, compared with $61.0 billion as of September 30, 2021. Year-over-year, total assets grew $8.7 billion or 17% from $52.2 billion as of December 31, 2020. Fourth quarter 2021 average interest-earning assets of $58.9 billion grew by $704.6 million, or 5% linked quarter annualized, from $58.2 billion in the third quarter of 2021. The quarter-over-quarter growth in average interest-earning assets mainly consisted of a $1.1 billion increase in average available-for-sale ("AFS") debt securities and a $572.4 million increase in average loans, partially offset by a $986.0 million decrease in average interest-bearing cash and deposits with banks. Excluding Paycheck Protection Program ("PPP") loans, average loans grew by $1.0 billion, or 10% linked quarter annualized.

* Record Loans - Total loans reached $41.7 billion as of December 31, 2021, up by $1.2 billion, or 12% annualized, from $40.5 billion as of September 30, 2021. Excluding PPP loans, total loans grew by $1.5 billion, or 15% linked quarter annualized, with growth well diversified throughout our major loan categories of commercial real estate ("CRE"), commercial and industrial ("C&I"), and residential mortgage. Year-over-year, total loans grew 9% from $38.4 billion as of December 31, 2020. Excluding PPP loans, total loans grew $4.3 billion or 12% year-over-year. PPP loans totaled $534.2 million as of December 31, 2021. Fourth quarter 2021 average loans of $40.5 billion grew by $572.4 million, or 6% linked quarter annualized. Excluding PPP loans, average loans grew by $1.0 billion, or 10% annualized, from the third quarter of 2021. The strongest growth was from average C&I loans (excluding PPP), which increased 16% linked quarter annualized. Average total CRE loans and average residential mortgage loans both increased 8% linked quarter annualized.

* Total Deposits - Total deposits were $53.4 billion as of December 31, 2021, essentially unchanged from $53.4 billion as of September 30, 2021, and up $8.5 billion or 19% from $44.9 billion as of December 31, 2020. Noninterest-bearing demand deposits totaled $22.8 billion as of December 31, 2021, down by $330.0 million, or 6% annualized, from $23.2 billion as of September 30, 2021, and up by $6.5 billion, or 40%, from $16.3 billion as of December 31, 2020. Noninterest-bearing demand deposits made up 43% of total deposits as of both December 31, 2021 and September 30, 2021, up from 36% as of December 31, 2020. Fourth quarter 2021 average deposits of $54.3 billion grew by $819.6 million, or 6% linked quarter annualized. Growth in the fourth quarter average deposits was led by noninterest-bearing demand deposits, which increased by $850.0 million, or 15% linked quarter annualized. This was followed by 10% annualized growth in money market deposits, partially offset by decreases in time and interest-bearing checking accounts.

* Strong Capital Levels - As of December 31, 2021, stockholders' equity was $5.8 billion, or $41.13 per common share, and tangible equity2 per common share was $37.79. Tangible equity per common share increased by 3% quarter-over-quarter and increased by 12% year-over-year. As of December 31, 2021, the tangible equity to tangible assets ratio2 was 8.88%, the common equity tier 1 ("CET1") capital ratio was 12.8%, and the total risk-based capital ratio was 14.1%.

* Dividend Increase - The first quarter 2022 common stock dividend was increased by 21%, or seven cents per share. The new quarterly dividend is $0.40 per share, up from $0.33 per share. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.

^1 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

BALANCE SHEET

* Total Assets - Total assets reached $60.9 billion as of December 31, 2021, compared with $61.0 billion as of September 30, 2021. Year-over-year, total assets grew $8.7 billion or 17% from $52.2 billion as of December 31, 2020. Fourth quarter 2021 average interest-earning assets of $58.9 billion grew by $704.6 million, or 5% linked quarter annualized, from $58.2 billion in the third quarter of 2021. The quarter-over-quarter growth in average interest-earning assets mainly consisted of a $1.1 billion increase in average available-for-sale ("AFS") debt securities and a $572.4 million increase in average loans, partially offset by a $986.0 million decrease in average interest-bearing cash and deposits with banks. Excluding Paycheck Protection Program ("PPP") loans, average loans grew by $1.0 billion, or 10% linked quarter annualized.

* Record Loans - Total loans reached $41.7 billion as of December 31, 2021, up by $1.2 billion, or 12% annualized, from $40.5 billion as of September 30, 2021. Excluding PPP loans, total loans grew by $1.5 billion, or 15% linked quarter annualized, with growth well diversified throughout our major loan categories of commercial real estate ("CRE"), commercial and industrial ("C&I"), and residential mortgage. Year-over-year, total loans grew 9% from $38.4 billion as of December 31, 2020. Excluding PPP loans, total loans grew $4.3 billion or 12% year-over-year. PPP loans totaled $534.2 million as of December 31, 2021. Fourth quarter 2021 average loans of $40.5 billion grew by $572.4 million, or 6% linked quarter annualized. Excluding PPP loans, average loans grew by $1.0 billion, or 10% annualized, from the third quarter of 2021. The strongest growth was from average C&I loans (excluding PPP), which increased 16% linked quarter annualized. Average total CRE loans and average residential mortgage loans both increased 8% linked quarter annualized.

* Total Deposits - Total deposits were $53.4 billion as of December 31, 2021, essentially unchanged from $53.4 billion as of September 30, 2021, and up $8.5 billion or 19% from $44.9 billion as of December 31, 2020. Noninterest-bearing demand deposits totaled $22.8 billion as of December 31, 2021, down by $330.0 million, or 6% annualized, from $23.2 billion as of September 30, 2021, and up by $6.5 billion, or 40%, from $16.3 billion as of December 31, 2020. Noninterest-bearing demand deposits made up 43% of total deposits as of both December 31, 2021 and September 30, 2021, up from 36% as of December 31, 2020. Fourth quarter 2021 average deposits of $54.3 billion grew by $819.6 million, or 6% linked quarter annualized. Growth in the fourth quarter average deposits was led by noninterest-bearing demand deposits, which increased by $850.0 million, or 15% linked quarter annualized. This was followed by 10% annualized growth in money market deposits, partially offset by decreases in time and interest-bearing checking accounts.

* Strong Capital Levels - As of December 31, 2021, stockholders' equity was $5.8 billion, or $41.13 per common share, and tangible equity2 per common share was $37.79. Tangible equity per common share increased by 3% quarter-over-quarter and increased by 12% year-over-year. As of December 31, 2021, the tangible equity to tangible assets ratio2 was 8.88%, the common equity tier 1 ("CET1") capital ratio was 12.8%, and the total risk-based capital ratio was 14.1%.

* Dividend Increase - The first quarter 2022 common stock dividend was increased by 21%, or seven cents per share. The new quarterly dividend is $0.40 per share, up from $0.33 per share. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.

^2 See reconciliation of GAAP to non-GAAP financial measures in Table 13.

OPERATING RESULTS

Full Year Earnings - Full year 2021 net income was $873.0 million, or $6.10 per diluted share, an increase of 54% from $567.8 million, or $3.97 per diluted share, for the full year 2020.

Fourth Quarter Earnings - Fourth quarter 2021 net income was $217.8 million, or $1.52 per diluted share, compared with $225.4 million, or $1.57 per diluted share, for the third quarter of 2021. Quarter-over-quarter, net income decreased by 3% and diluted earnings per share decreased by 3.5%.

Fourth Quarter 2021 Compared to Third Quarter 2021

Net Interest Income and Net Interest MarginNet interest income ("NII") totaled $405.7 million, an increase of 10% annualized from $395.7 million. Net interest margin ("NIM") of 2.73% increased by three basis points from 2.70%.

* Excluding the impact of PPP loans, adjusted NII3 totaled $396.1 million, an increase of 16% annualized from $380.5 million. PPP loans contributed $9.6 million to NII in the fourth quarter, compared with $15.2 million in the third quarter. * Adjusted NII growth reflected higher interest income from growth in loans and AFS debt securities, as well as lower interest expense because of a lower cost of funds. * Adjusted NIM3 of 2.70% increased by six basis points from 2.64%. The quarter-over-quarter adjusted NIM expansion was driven by a favorable shift in the asset mix into higher interest earning assets, and a lower cost of deposits. * The average loan yield was 3.59%, down two basis points from the third quarter, and the adjusted average loan yield3 of 3.56% was unchanged quarter-over-quarter. * The average cost of funds of 0.12% decreased by two basis points from 0.14%. This reflected growth in average demand deposits, and a continued decline in the cost of interest-bearing deposits. The average cost of deposits of 0.10% decreased by two basis points from 0.12%.

Noninterest IncomeNoninterest income totaled $71.5 million in the fourth quarter, compared with $73.1 million in the third quarter.

* Quarter-over-quarter, lending fees increased $3.2 million or 18%, reflecting higher syndication, trade finance and loan commitment fees. Deposit account fees increased $1.5 million or 8%, due to growth in commercial account fees. * Interest rate contracts ("IRC") and other derivative income was $1.9 million in the fourth quarter, compared with $7.2 million in the third quarter. The $5.2 million quarter-over-quarter decrease was due to lower customer-driven IRC revenue and a smaller favorable change in the credit valuation adjustment, compared with the previous quarter.

^3 See reconciliation of GAAP to non-GAAP financial measures in Table 14.

Noninterest ExpenseNoninterest expense totaled $210.1 million in the fourth quarter, compared with $205.4 million in the third quarter. Fourth quarter noninterest expense consisted of $177.7 million of adjusted noninterest expense4, $31.8 million in amortization of tax credit and other investments, and $0.6 million in amortization of core deposit intangibles.

* Adjusted noninterest expense of $177.7 million increased by 7% from $166.7 million in the third quarter. The quarter-over-quarter change reflects increased bonus and incentive compensation expense in the fourth quarter, which was primarily related to full year business activity, as well as higher charitable contributions in other operating expense. * Amortization of tax credit and other investments totaled $31.8 million, compared with $38.0 million in the third quarter. Quarter-over-quarter variability in the amortization of tax credits and other investments partially reflects the impact of investments that close in a given period. * The adjusted efficiency ratio4 was 37.2% in the fourth quarter, compared with 35.6% in the third quarter.

TAX RELATED ITEMS

Full year 2021 income tax expense was $183.4 million and the effective tax rate was 17.4%, compared with income tax expense of $118.0 million and an effective tax rate of 17.2% for the full year 2020. Fourth quarter 2021 income tax expense was $59.3 million and the effective tax rate was 21.4%, compared with income tax expense of $48.0 million and an effective tax rate of 17.5% for the third quarter of 2021.

ASSET QUALITY

Quarter-over-quarter, nonperforming assets ("NPAs") decreased by 40%, to 0.17% of total assets, and criticized loans were down 18%, to 2.00% of loans held-for-investment ("HFI"). Year-over-year, NPAs decreased by 56% and criticized loans decreased by 32%.

* The NPA ratio improved by 11 basis points quarter-over-quarter and by 28 basis points year-over-year. As of December 31, 2021, NPAs were $103.5 million, or 0.17% of total assets, compared with $172.6 million, or 0.28% of total assets, as of September 30, 2021, and $234.9 million, or 0.45% of total assets, as of December 31, 2020. * The criticized loan ratio improved by 50 basis points quarter-over-quarter and by 117 basis points year-over-year. As of December 31, 2021, criticized loans totaled $833.1 million, or 2.00% of loans HFI, compared with $1.0 billion, or 2.50% of loans HFI, as of September 30, 2021, and $1.2 billion, or 3.17% of loans HFI as of December 31, 2020. * The allowance for loan losses ("ALLL") totaled $541.6 million, or 1.30% of loans HFI, as of December 31, 2021, compared with $560.4 million, or 1.38% of loans HFI, as of September 30, 2021, and $620.0 million, or 1.61% of loans HFI, as of December 31, 2020. The quarter-over-quarter decrease in the ALLL largely reflects an improved macroeconomic forecast, partially offset by higher downside scenario weightings. Consequently, the Company recorded a negative $10.0 million provision for credit losses during the fourth quarter of 2021. * Fourth quarter 2021 net charge-offs were $9.8 million, or annualized 0.10% of average loans HFI, down from $13.5 million, or annualized 0.13% of average loans HFI, for the third quarter of 2021. The net charge-off ratio for the full year of 2021 was 0.13%, a decrease from 0.17% for the full year 2020.

^4 See reconciliation of GAAP to non-GAAP financial measures in Table 12.

CAPITAL STRENGTH

Capital levels for East West are strong. The following table presents the regulatory capital metrics as of December 31, 2021, September 30, 2021, and December 31, 2020.

EWBC Risk-Based Capital Ratios

($ in millions) December 31, September 30, December 31, 2021 ^(a) 2021 ^(a) 2020 ^(a)

CET1 capital ratio 12.8 % 12.8 % 12.7 %

Tier 1 capital ratio 12.8 % 12.8 % 12.7 %

Total capital ratio 14.1 % 14.2 % 14.3 %

Leverage ratio 9.0 % 8.8 % 9.4 %

Risk-Weighted Assets $ 43,594 $ 42,128 $ 38,406 ("RWA") ^(b)

(a)

The Company has elected to use the 2020 CECL transition provision in the calculation of its December 31, 2021, September 30, 2021, and December 31, 2020 regulatory capital ratios. The Company's December 31, 2021 regulatory capital ratios and RWA are preliminary.

(b)

Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West's Board of Directors has declared first quarter 2022 dividends for the Company's common stock. The common stock cash dividend of $0.40 per share is payable on February 22, 2022 to stockholders of record on February 7, 2022. This represents a 21% increase, or seven cents per share, to the quarterly common stock dividend, up from $0.33 per share previously. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.

On March 3, 2020, East West's Board of Directors authorized the repurchase of up to $500 million of East West's common stock. East West did not repurchase any shares during the fourth quarter of 2021, and has not repurchased any shares since the first quarter of 2020, under this authorization.

Conference Call

East West will host a conference call to discuss fourth quarter and full year 2021 earnings with the public on Thursday, January 27, 2022, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2021 results and operating developments.

* The following dial-in information is provided for participation in the conference call: calls within the U.S. - (877) 506-6399; calls within Canada - (855) 669-9657; international calls - (412) 902-6699. * A presentation to accompany the earnings call will be available on the Investor Relations page of the Company's website at www.eastwestbank.com/investors. * A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company's website at www.eastwestbank.com/investors. * A replay of the conference call will be available on January 27, 2022, at 11:30 a.m. PT through February 27, 2022. The replay numbers are: within the U.S. - (877) 344-7529; within Canada - (855) 669-9658; international calls - (412) 317-0088; and the replay access code is: 7293241.

About East West

East West Bancorp, Inc. is a public company with total assets of $60.9 billion and is traded on the Nasdaq Global Select Market under the symbol "EWBC". The Company's wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California, operating over 120 locations in the United States and in China. The Company's markets in the United States include California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In China, East West's presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company's website at www.eastwestbank.com.

Forward-Looking StatementsCertain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission ("SEC") and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts, and are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company's control. These statements relate to the Company's financial condition, results of operations, plans, objectives, future performance and/or business. They usually can be identified by the use of forward-looking language, such as "anticipates," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "goal," "intends to," "likely," "may," "might," "objective," "plans," "potential,""projects," "target," "trend," "remains," "should," "will," "would," or similar expressions, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such differences include, but are not limited to: changes in the global economy, including an economic slowdown, or market disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions; the impact of any future federal government shutdown and uncertainty regarding the federal government's debt limit; changes in local, regional and global business, economic and political conditions and geopolitical events; the economic, financial, reputational and other impacts of the ongoing COVID-19 global pandemic including variants thereof and any other pandemic, epidemic or health-related crisis, as well as a deterioration of asset quality and an increase in credit losses due to the COVID-19 global pandemic; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System (the "Federal Reserve"), the Federal Deposit Insurance Corporation ("FDIC"), the SEC, the Consumer Financial Protection Bureau ("CFPB"), and the California Department of Financial Protection and Innovation ("DFPI") - Division of Financial Institutions; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the U.S. and the People's Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, and savings and borrowing habits, patterns and behaviors; fluctuations in the Company's stock price; impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the Company's ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; success and timing of the Company's business strategies; the Company's ability to retain key officers and employees; impact on the Company's funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company's product mix; changes in the Company's costs of operation, compliance and expansion; the Company's ability to adopt and successfully integrate new technologies into its business in a strategic manner; impact of the benchmark interest rate reform in the U.S. including the transition away from USD London Interbank Offered Rate ("LIBOR") to alternative reference rates; impact of communications or technology disruption, failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with which the Company does business, including as a result of cyber-attacks, and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused and materially impact the Company's ability to provide services to its clients; adequacy of the Company's risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company's expectations regarding future credit losses and allowance levels; impact of adverse changes to the Company's credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; impact on the Company's operations due to political developments, disease pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company's business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations, legal actions and the Company's interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board ("FASB") or other regulatory agencies and their impact on critical accounting policies and assumptions; the Company's capital requirements and its ability to generate capital internally or raise capital on favorable terms; impact on the Company's liquidity due to changes in the Company's ability to pay dividends and repurchase common stock and to receive dividends from its subsidiaries; any future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; impact of increased focus on social, environmental and sustainability matters, which may affect the Company's operations as well as those of its customers and the economy more broadly; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, declines in asset values and/or recognition of allowance for credit losses on securities held in the Company's available-for-sale ("AFS") debt securities portfolio; and impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts and earthquakes, all of which are particularly common in California, or other events that may directly or indirectly result in a negative impact on the Company's financial performance.

For a more detailed discussion of some of the factors that might cause such differences, see the Company's 2020 Form 10-K under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company's Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

The Company has elected to use the 2020 CECL transition provision in the(a) calculation of its December 31, 2021, September 30, 2021, and December 31, 2020 regulatory capital ratios. The Company's December 31, 2021 regulatory capital ratios and RWA are preliminary.

Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if(b) relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.

DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West's Board of Directors has declared first quarter 2022 dividends for the Company's common stock. The common stock cash dividend of $0.40 per share is payable on February 22, 2022 to stockholders of record on February 7, 2022. This represents a 21% increase, or seven cents per share, to the quarterly common stock dividend, up from $0.33 per share previously. The new annual dividend is $1.60 per share, compared with $1.32 per share previously.

On March 3, 2020, East West's Board of Directors authorized the repurchase of up to $500 million of East West's common stock. East West did not repurchase any shares during the fourth quarter of 2021, and has not repurchased any shares since the first quarter of 2020, under this authorization.

Conference Call

East West will host a conference call to discuss fourth quarter and full year 2021 earnings with the public on Thursday, January 27, 2022, at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses fourth quarter and full year 2021 results and operating developments.

* The following dial-in information is provided for participation in the conference call: calls within the U.S. - (877) 506-6399; calls within Canada - (855) 669-9657; international calls - (412) 902-6699. * A presentation to accompany the earnings call will be available on the Investor Relations page of the Company's website at www.eastwestbank.com/investors. * A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company's website at www.eastwestbank.com/investors. * A replay of the conference call will be available on January 27, 2022, at 11:30 a.m. PT through February 27, 2022. The replay numbers are: within the U.S. - (877) 344-7529; within Canada - (855) 669-9658; international calls - (412) 317-0088; and the replay access code is: 7293241.

About East West

East West Bancorp, Inc. is a public company with total assets of $60.9 billion and is traded on the Nasdaq Global Select Market under the symbol "EWBC". The Company's wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California, operating over 120 locations in the United States and in China. The Company's markets in the United States include California, Georgia, Massachusetts, Nevada, New York, Texas and Washington. In China, East West's presence includes full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, and Xiamen. For more information on East West, visit the Company's website at www.eastwestbank.com.

Forward-Looking StatementsCertain matters set forth herein (including any exhibits hereto) contain forward-looking statements that are intended to be covered by the safe harbor for such statements provided by the Private Securities Litigation Reform Act of 1995. In addition, the Company may make forward-looking statements in other documents that it files with, or furnishes to, the U.S. Securities and Exchange Commission ("SEC") and management may make forward-looking statements to analysts, investors, media members and others. Forward-looking statements are those that do not relate to historical facts, and are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company's control. These statements relate to the Company's financial condition, results of operations, plans, objectives, future performance and/or business. They usually can be identified by the use of forward-looking language, such as "anticipates," "assumes," "believes," "can," "continues," "could," "estimates," "expects," "forecasts," "goal," "intends to," "likely," "may," "might," "objective," "plans," "potential,""projects," "target," "trend," "remains," "should," "will," "would," or similar expressions, and the negative thereof. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, including, but not limited to, those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such differences include, but are not limited to: changes in the global economy, including an economic slowdown, or market disruption, level of inflation, interest rate environment, housing prices, employment levels, rate of growth and general business conditions; the impact of any future federal government shutdown and uncertainty regarding the federal government's debt limit; changes in local, regional and global business, economic and political conditions and geopolitical events; the economic, financial, reputational and other impacts of the ongoing COVID-19 global pandemic including variants thereof and any other pandemic, epidemic or health-related crisis, as well as a deterioration of asset quality and an increase in credit losses due to the COVID-19 global pandemic; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System (the "Federal Reserve"), the Federal Deposit Insurance Corporation ("FDIC"), the SEC, the Consumer Financial Protection Bureau ("CFPB"), and the California Department of Financial Protection and Innovation ("DFPI") - Division of Financial Institutions; the changes and effects thereof in trade, monetary and fiscal policies and laws, including the ongoing trade dispute between the U.S. and the People's Republic of China and the monetary policies of the Federal Reserve; changes in the commercial and consumer real estate markets; changes in consumer or commercial spending, and savings and borrowing habits, patterns and behaviors; fluctuations in the Company's stock price; impact from potential changes to income tax laws and regulations, federal spending and economic stimulus programs; the Company's ability to compete effectively against financial institutions in its banking markets and other entities, including as a result of emerging technologies; the soundness of other financial institutions; success and timing of the Company's business strategies; the Company's ability to retain key officers and employees; impact on the Company's funding costs, net interest income and net interest margin from changes in key variable market interest rates, competition, regulatory requirements and the Company's product mix; changes in the Company's costs of operation, compliance and expansion; the Company's ability to adopt and successfully integrate new technologies into its business in a strategic manner; impact of the benchmark interest rate reform in the U.S. including the transition away from USD London Interbank Offered Rate ("LIBOR") to alternative reference rates; impact of communications or technology disruption, failure in, or breach of, the Company's operational or security systems or infrastructure, or those of third parties with which the Company does business, including as a result of cyber-attacks, and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused and materially impact the Company's ability to provide services to its clients; adequacy of the Company's risk management framework, disclosure controls and procedures and internal control over financial reporting; future credit quality and performance, including the Company's expectations regarding future credit losses and allowance levels; impact of adverse changes to the Company's credit ratings from major credit rating agencies; impact of adverse judgments or settlements in litigation; impact on the Company's operations due to political developments, disease pandemics, wars, civil unrest, terrorism or other hostilities that may disrupt or increase volatility in securities or otherwise affect business and economic conditions; heightened regulatory and governmental oversight and scrutiny of the Company's business practices, including dealings with consumers; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations, legal actions and the Company's interactions with business partners, counterparties, service providers and other third parties; impact of regulatory enforcement actions; changes in accounting standards as may be required by the Financial Accounting Standards Board ("FASB") or other regulatory agencies and their impact on critical accounting policies and assumptions; the Company's capital requirements and its ability to generate capital internally or raise capital on favorable terms; impact on the Company's liquidity due to changes in the Company's ability to pay dividends and repurchase common stock and to receive dividends from its subsidiaries; any future strategic acquisitions or divestitures; changes in the equity and debt securities markets; fluctuations in foreign currency exchange rates; impact of increased focus on social, environmental and sustainability matters, which may affect the Company's operations as well as those of its customers and the economy more broadly; significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increases in funding costs, declines in asset values and/or recognition of allowance for credit losses on securities held in the Company's available-for-sale ("AFS") debt securities portfolio; and impact of climate change, natural or man-made disasters or calamities, such as wildfires, droughts and earthquakes, all of which are particularly common in California, or other events that may directly or indirectly result in a negative impact on the Company's financial performance.

For a more detailed discussion of some of the factors that might cause such differences, see the Company's 2020 Form 10-K under the heading Item 1A. Risk Factors and the information set forth under Item 1A. Risk Factors in the Company's Quarterly Reports on Form 10-Q. The Company does not undertake, and specifically disclaims any obligation to update or revise any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements except as required by law.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

($ and shares in thousands, except per share data)

(unaudited)

Table 1



December 31, 2021 % or Basis Point Change

December 31, September 30, December 31, Qtr-o-Qtr Yr-o-Yr 2021 2021 2020

Assets

Cash and due from $ 527,317 $ 594,631 $ 592,117 (11.3 ) % (10.9 ) banks %

Interest-bearing 3,385,618 4,258,270 3,425,854 (20.5 ) (1.2 ) cash with banks

Cash and cash 3,912,935 4,852,901 4,017,971 (19.4 ) (2.6 ) equivalents

Interest-bearing 736,492 855,162 809,728 (13.9 ) (9.0 ) deposits with banks

Assets purchasedunder resale 2,353,503 2,596,142 1,460,000 (9.3 ) 61.2 agreements ("resaleagreements")

Available-for-sale("AFS") debtsecurities(amortized cost of 9,965,353 9,713,006 5,544,658 2.6 79.7 $10,087,179,$9,783,180 and$5,470,523)

Federal Home LoanBank ("FHLB") and 77,434 77,200 83,046 0.3 (6.8 ) Federal ReserveBank ("FRB") stock

Loans held-for-sale 635 - 1,788 100.0 (64.5 ) ("HFS")

Loansheld-for-investment(''HFI'') (net ofallowance for loan 41,152,202 39,921,301 37,770,972 3.1 9.0 losses of $541,579,$560,404 and$619,983)

Investments inqualified 289,741 297,367 213,555 (2.6 ) 35.7 affordable housingpartnerships, net

Investments in taxcredit and other 338,522 367,428 266,525 (7.9 ) 27.0 investments, net

Goodwill 465,697 465,697 465,697 - -

Operating lease 98,632 99,785 95,460 (1.2 ) 3.3 right-of-use assets

Other assets 1,479,555 1,713,121 1,427,513 (13.6 ) 3.6

Total assets $ 60,870,701 $ 60,959,110 $ 52,156,913 (0.1 ) % 16.7 %



Liabilities andStockholders' Equity

Deposits $ 53,350,532 $ 53,356,190 $ 44,862,752 (0.0 ) % 18.9 %

Short-term - - 21,009 - (100.0 ) borrowings

FHLB advances 249,331 248,898 652,612 0.2 (61.8 )

Assets sold underrepurchaseagreements 300,000 300,000 300,000 - - ("repurchaseagreements")

Long-term debt andfinance lease 151,997 151,795 151,739 0.1 0.2 liabilities

Operating lease 105,534 107,107 102,830 (1.5 ) 2.6 liabilities

Accrued expensesand other 876,089 1,104,919 796,796 (20.7 ) 10.0 liabilities

Total liabilities 55,033,483 55,268,909 46,887,738 (0.4 ) 17.4

Stockholders' 5,837,218 5,690,201 5,269,175 2.6 10.8 equity

Total liabilitiesand stockholders' $ 60,870,701 $ 60,959,110 $ 52,156,913 (0.1 ) % 16.7 % equity



Book value per $ 41.13 $ 40.10 $ 37.22 2.6 % 10.5 % common share

Tangible equity ^(1) per common $ 37.79 $ 36.75 $ 33.85 2.8 11.6 share

Number of commonshares at 141,908 141,884 141,565 0.0 0.2 period-end

Tangible equity totangible assets 8.88 % 8.62 % 9.27 % 26 bps (39 ) bpsratio ^(1)

(1)

See reconciliation of GAAP to non-GAAP financial measures in Table 13.

(1) See reconciliation of GAAP to non-GAAP financial measures in Table 13.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

TOTAL LOANS AND DEPOSITS DETAIL

($ in thousands)

(unaudited)

Table 2

December 31, 2021% Change

December 31, 2021

September 30, 2021

December 31, 2020

Qtr-o-Qtr

Yr-o-Yr

Loans:

Commercial:

Commercial and industrial ("C&I") (1)

$

14,150,608

$

13,831,649

$

13,631,726

2.3

%

3.8

%

Commercial real estate ("CRE"):

CRE

12,155,047

11,818,065

11,174,611

2.9

8.8

Multifamily residential

3,675,605

3,340,378

3,033,998

10.0

21.1

Construction and land

346,486

376,921

599,692

(8.1

)

(42.2

)

Total CRE

16,177,138

15,535,364

14,808,301

4.1

9.2

Consumer:

Residential mortgage:

Single-family residential

9,093,702

9,021,801

8,185,953

0.8

11.1

Home equity lines of credit ("HELOCs")

2,144,821

1,963,622

1,601,716

9.2

33.9

Total residential mortgage

11,238,523

10,985,423

9,787,669

2.3

14.8

Other consumer

127,512

129,269

163,259

(1.4

)

(21.9

)

Total loans HFI (2)

41,693,781

40,481,705

38,390,955

3.0

8.6

Loans HFS

635

-

1,788

100.0

(64.5

)

Total loans (1)(2)

41,694,416

40,481,705

38,392,743

3.0

8.6

Allowance for loan losses

(541,579

)

(560,404

)

(619,983

)

(3.4

)

(12.6

)

Net loans (2)

$

41,152,837

$

39,921,301

$

37,772,760

3.1

8.9

Deposits:

Noninterest-bearing demand

$

22,845,464

$

23,175,471

$

16,298,301

(1.4

) %

40.2

%

Interest-bearing checking

6,524,721

6,530,601

6,142,193

(0.1

)

6.2

Money market

13,130,300

12,555,879

10,740,667

4.6

22.2

Savings

2,888,065

2,855,597

2,681,242

1.1

7.7

Time deposits

7,961,982

8,238,642

9,000,349

(3.4

)

(11.5

)

Total deposits

$

53,350,532

$

53,356,190

$

44,862,752

(0.0

) %

18.9

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

TOTAL LOANS AND DEPOSITS DETAIL

($ in thousands)

(unaudited)

Table 2



December 31, 2021 % Change

December 31, September 30, December 31, Qtr-o-Qtr Yr-o-Yr 2021 2021 2020

Loans:

Commercial:

Commercial andindustrial ("C&I") $ 14,150,608 $ 13,831,649 $ 13,631,726 2.3 % 3.8 %^(1)

Commercial real estate ("CRE"):

CRE 12,155,047 11,818,065 11,174,611 2.9 8.8

Multifamily 3,675,605 3,340,378 3,033,998 10.0 21.1 residential

Construction and 346,486 376,921 599,692 (8.1 ) (42.2 )land

Total CRE 16,177,138 15,535,364 14,808,301 4.1 9.2

Consumer:

Residential mortgage:

Single-family 9,093,702 9,021,801 8,185,953 0.8 11.1 residential

Home equity linesof credit 2,144,821 1,963,622 1,601,716 9.2 33.9 ("HELOCs")

Total residential 11,238,523 10,985,423 9,787,669 2.3 14.8 mortgage

Other consumer 127,512 129,269 163,259 (1.4 ) (21.9 )

Total loans HFI ^ 41,693,781 40,481,705 38,390,955 3.0 8.6 (2)

Loans HFS 635 - 1,788 100.0 (64.5 )

Total loans ^(1)(2) 41,694,416 40,481,705 38,392,743 3.0 8.6

Allowance for loan (541,579 ) (560,404 ) (619,983 ) (3.4 ) (12.6 )losses

Net loans ^(2) $ 41,152,837 $ 39,921,301 $ 37,772,760 3.1 8.9



Deposits:

Noninterest-bearing $ 22,845,464 $ 23,175,471 $ 16,298,301 (1.4 ) % 40.2 %demand

Interest-bearing 6,524,721 6,530,601 6,142,193 (0.1 ) 6.2 checking

Money market 13,130,300 12,555,879 10,740,667 4.6 22.2

Savings 2,888,065 2,855,597 2,681,242 1.1 7.7

Time deposits 7,961,982 8,238,642 9,000,349 (3.4 ) (11.5 )

Total deposits $ 53,350,532 $ 53,356,190 $ 44,862,752 (0.0 ) % 18.9 %

(1)

Includes $534.2 million, $807.3 million and $1.57 billion of Paycheck Protection Program ("PPP") loans as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Excluding PPP loans, total loans were $41.16 billion, $39.67 billion and $36.82 billion as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

(2)

Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.7) million, $(54.3) million and $(58.8) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(5.7) million, $(13.5) million and $(12.7) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

Includes $534.2 million, $807.3 million and $1.57 billion of Paycheck Protection Program ("PPP") loans as of December 31, 2021, September 30,(1) 2021 and December 31, 2020, respectively. Excluding PPP loans, total loans were $41.16 billion, $39.67 billion and $36.82 billion as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(50.7) million, $(54.3) million and $(58.8)(2) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(5.7) million, $(13.5) million and $(12.7) million as of December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

($ and shares in thousands, except per share data)

(unaudited)

Table 3

Three Months Ended

December 31, 2021% Change

December 31, 2021

September 30, 2021

December 31, 2020

Qtr-o-Qtr

Yr-o-Yr

Interest and dividend income (1)

$

422,708

$

415,307

$

381,348

1.8

%

10.8

%

Interest expense

17,011

19,601

34,767

(13.2

)

(51.1

)

Net interest income before provision for credit losses

405,697

395,706

346,581

2.5

17.1

(Reversal of) provision for credit losses

(10,000

)

(10,000

)

24,340

-

NM

Net interest income after provision for credit losses

415,697

405,706

322,241

2.5

29.0

Noninterest income

71,489

73,109

69,832

(2.2

)

2.4

Noninterest expense

210,105

205,384

178,651

2.3

17.6

Income before income taxes

277,081

273,431

213,422

1.3

29.8

Income tax expense

59,285

47,982

49,338

23.6

20.2

Net income

$

217,796

$

225,449

$

164,084

(3.4

) %

32.7

%

Earnings per share ("EPS")

- Basic

$

1.53

$

1.59

$

1.16

(3.4

) %

32.4

%

- Diluted

$

1.52

$

1.57

$

1.15

(3.5

)

32.0

Weighted-average number of shares outstanding

- Basic

141,907

141,880

141,564

0.0

%

0.2

%

- Diluted

143,323

143,143

142,529

0.1

0.6

Three Months Ended

December 31, 2021% Change

December 31, 2021

September 30, 2021

December 31, 2020

Qtr-o-Qtr

Yr-o-Yr

Noninterest income:

Lending fees

$

20,739

$

17,516

$

18,387

18.4

%

12.8

%

Deposit account fees

20,028

18,508

14,256

8.2

40.5

Interest rate contracts and other derivative income

1,932

7,156

12,967

(73.0

)

(85.1

)

Foreign exchange income

13,343

13,101

6,679

1.8

99.8

Wealth management fees

5,291

5,598

4,497

(5.5

)

17.7

Net gains on sales of loans

2,308

3,329

3,058

(30.7

)

(24.5

)

Gains on sales of AFS debt securities

390

354

432

10.2

(9.7

)

Other investment income

2,982

5,349

3,989

(44.3

)

(25.2

)

Other income

4,476

2,198

5,567

103.6

(19.6

)

Total noninterest income

$

71,489

$

73,109

$

69,832

(2.2

) %

2.4

%

Noninterest expense:

Compensation and employee benefits

$

114,743

$

105,751

$

105,400

8.5

%

8.9

%

Occupancy and equipment expense

15,846

15,851

16,548

(0.0

)

(4.2

)

Deposit insurance premiums and regulatory assessments

4,772

4,641

3,995

2.8

19.4

Deposit account expense

4,307

4,136

3,501

4.1

23.0

Data processing

4,175

3,575

4,707

16.8

(11.3

)

Computer software expense

7,494

8,426

7,027

(11.1

)

6.6

Consulting expense

1,539

1,635

1,537

(5.9

)

0.1

Legal expense

2,175

2,363

1,673

(8.0

)

30.0

Other operating expense

23,254

20,998

22,000

10.7

5.7

Amortization of tax credit and other investments

31,800

38,008

12,263

(16.3

)

159.3

Total noninterest expense

$

210,105

$

205,384

$

178,651

2.3

%

17.6

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

($ and shares in thousands, except per share data)

(unaudited)

Table 3



Three Months Ended December 31, 2021 % Change

December September December 31, 30, 31, Qtr-o-Qtr Yr-o-Yr 2021 2021 2020

Interest anddividend income ^ $ 422,708 $ 415,307 $ 381,348 1.8 % 10.8 %(1)

Interest expense 17,011 19,601 34,767 (13.2 ) (51.1 )

Net interestincome before 405,697 395,706 346,581 2.5 17.1 provision forcredit losses

(Reversal of)provision for (10,000 ) (10,000 ) 24,340 - NM credit losses

Net interestincome after 415,697 405,706 322,241 2.5 29.0 provision forcredit losses

Noninterest 71,489 73,109 69,832 (2.2 ) 2.4 income

Noninterest 210,105 205,384 178,651 2.3 17.6 expense

Income before 277,081 273,431 213,422 1.3 29.8 income taxes

Income tax 59,285 47,982 49,338 23.6 20.2 expense

Net income $ 217,796 $ 225,449 $ 164,084 (3.4 ) % 32.7 %

Earnings per share ("EPS")

- Basic $ 1.53 $ 1.59 $ 1.16 (3.4 ) % 32.4 %

- Diluted $ 1.52 $ 1.57 $ 1.15 (3.5 ) 32.0

Weighted-averagenumber of shares outstanding

- Basic 141,907 141,880 141,564 0.0 % 0.2 %

- Diluted 143,323 143,143 142,529 0.1 0.6



Three Months Ended December 31, 2021 % Change

December September December 31, 30, 31, Qtr-o-Qtr Yr-o-Yr 2021 2021 2020

Noninterest income:

Lending fees $ 20,739 $ 17,516 $ 18,387 18.4 % 12.8 %

Deposit account 20,028 18,508 14,256 8.2 40.5 fees

Interest ratecontracts and 1,932 7,156 12,967 (73.0 ) (85.1 )other derivativeincome

Foreign exchange 13,343 13,101 6,679 1.8 99.8 income

Wealth management 5,291 5,598 4,497 (5.5 ) 17.7 fees

Net gains on 2,308 3,329 3,058 (30.7 ) (24.5 )sales of loans

Gains on sales ofAFS debt 390 354 432 10.2 (9.7 )securities

Other investment 2,982 5,349 3,989 (44.3 ) (25.2 )income

Other income 4,476 2,198 5,567 103.6 (19.6 )

Total noninterest $ 71,489 $ 73,109 $ 69,832 (2.2 ) % 2.4 %income

Noninterest expense:

Compensation and $ 114,743 $ 105,751 $ 105,400 8.5 % 8.9 %employee benefits

Occupancy and 15,846 15,851 16,548 (0.0 ) (4.2 )equipment expense

Deposit insurancepremiums and 4,772 4,641 3,995 2.8 19.4 regulatoryassessments

Deposit account 4,307 4,136 3,501 4.1 23.0 expense

Data processing 4,175 3,575 4,707 16.8 (11.3 )

Computer software 7,494 8,426 7,027 (11.1 ) 6.6 expense

Consulting 1,539 1,635 1,537 (5.9 ) 0.1 expense

Legal expense 2,175 2,363 1,673 (8.0 ) 30.0

Other operating 23,254 20,998 22,000 10.7 5.7 expense

Amortization oftax credit and 31,800 38,008 12,263 (16.3 ) 159.3 other investments

Total noninterest $ 210,105 $ 205,384 $ 178,651 2.3 % 17.6 %expense

NM - Not meaningful.(1)

Includes $9.6 million, $15.2 million and $14.2 million of interest income related to PPP loans for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

NM - Not meaningful. Includes $9.6 million, $15.2 million and $14.2 million of interest income(1) related to PPP loans for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

($ and shares in thousands, except per share data)

(unaudited)

Table 4

Year Ended

December 31, 2021 % Change

December 31, 2021

December 31, 2020

Yr-o-Yr

Interest and dividend income (1)

$

1,618,734

$

1,595,042

1.5

%

Interest expense

87,163

217,849

(60.0

)

Net interest income before provision for credit losses

1,531,571

1,377,193

11.2

(Reversal of ) provision for credit losses

(35,000

)

210,653

NM

Net interest income after provision for credit losses

1,566,571

1,166,540

34.3

Noninterest income

285,895

235,547

21.4

Noninterest expense

796,089

716,322

11.1

Income before income taxes

1,056,377

685,765

54.0

Income tax expense

183,396

117,968

55.5

Net income

$

872,981

$

567,797

53.7

%

EPS

- Basic

$

6.16

$

3.99

54.3

%

- Diluted

$

6.10

$

3.97

53.6

Weighted-average number of shares outstanding

- Basic

141,826

142,336

(0.4

)%

- Diluted

143,140

142,991

0.1

Year Ended

December 31, 2021 % Change

December 31, 2021

December 31, 2020

Yr-o-Yr

Noninterest income:

Lending fees

$

77,704

$

74,842

3.8

%

Deposit account fees

71,261

48,148

48.0

Interest rate contracts and other derivative income

22,913

31,685

(27.7

)

Foreign exchange income

48,977

22,370

118.9

Wealth management fees

25,751

17,494

47.2

Net gains on sales of loans

8,909

4,501

97.9

Gains on sales of AFS debt securities

1,568

12,299

(87.3

)

Other investment income

16,852

10,641

58.4

Other income

11,960

13,567

(11.8

)

Total noninterest income

$

285,895

$

235,547

21.4

%

Noninterest expense:

Compensation and employee benefits

$

433,728

$

404,071

7.3

%

Occupancy and equipment expense

62,996

66,489

(5.3

)

Deposit insurance premiums and regulatory assessments

17,563

15,128

16.1

Deposit account expense

16,152

13,530

19.4

Data processing

16,263

16,603

(2.0

)

Computer software expense

30,600

29,033

5.4

Consulting expense

6,517

5,391

20.9

Legal expense

8,015

7,766

3.2

Other operating expense

81,798

79,489

2.9

Amortization of tax credit and other investments

122,457

70,082

74.7

Repurchase agreements' extinguishment cost

-

8,740

(100.0

)

Total noninterest expense

$

796,089

$

716,322

11.1

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

($ and shares in thousands, except per share data)

(unaudited)

Table 4



December Year Ended 31, 2021 % Change

December 31, December 2021 31, Yr-o-Yr 2020

Interest and dividend income ^(1) $ 1,618,734 $ 1,595,042 1.5 %

Interest expense 87,163 217,849 (60.0 )

Net interest income before provision 1,531,571 1,377,193 11.2 for credit losses

(Reversal of ) provision for credit (35,000 ) 210,653 NM losses

Net interest income after provision 1,566,571 1,166,540 34.3 for credit losses

Noninterest income 285,895 235,547 21.4

Noninterest expense 796,089 716,322 11.1

Income before income taxes 1,056,377 685,765 54.0

Income tax expense 183,396 117,968 55.5

Net income $ 872,981 $ 567,797 53.7 %

EPS

- Basic $ 6.16 $ 3.99 54.3 %

- Diluted $ 6.10 $ 3.97 53.6

Weighted-average number of shares outstanding

- Basic 141,826 142,336 (0.4 )%

- Diluted 143,140 142,991 0.1



December Year Ended 31, 2021 % Change

December 31, December 2021 31, Yr-o-Yr 2020

Noninterest income:

Lending fees $ 77,704 $ 74,842 3.8 %

Deposit account fees 71,261 48,148 48.0

Interest rate contracts and other 22,913 31,685 (27.7 )derivative income

Foreign exchange income 48,977 22,370 118.9

Wealth management fees 25,751 17,494 47.2

Net gains on sales of loans 8,909 4,501 97.9

Gains on sales of AFS debt 1,568 12,299 (87.3 )securities

Other investment income 16,852 10,641 58.4

Other income 11,960 13,567 (11.8 )

Total noninterest income $ 285,895 $ 235,547 21.4 %

Noninterest expense:

Compensation and employee benefits $ 433,728 $ 404,071 7.3 %

Occupancy and equipment expense 62,996 66,489 (5.3 )

Deposit insurance premiums and 17,563 15,128 16.1 regulatory assessments

Deposit account expense 16,152 13,530 19.4

Data processing 16,263 16,603 (2.0 )

Computer software expense 30,600 29,033 5.4

Consulting expense 6,517 5,391 20.9

Legal expense 8,015 7,766 3.2

Other operating expense 81,798 79,489 2.9

Amortization of tax credit and other 122,457 70,082 74.7 investments

Repurchase agreements' - 8,740 (100.0 )extinguishment cost

Total noninterest expense $ 796,089 $ 716,322 11.1 %

NM - Not meaningful.(1)

Includes $55.2 million and $43.3 million of interest income related to PPP loans for the years ended December 31, 2021 and 2020, respectively.

NM - Not meaningful.(1) Includes $55.2 million and $43.3 million of interest income related to PPP loans for the years ended December 31, 2021 and 2020, respectively.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED AVERAGE BALANCES

($ in thousands)

(unaudited)

Table 5

Three Months Ended

December 31, 2021 % Change

Year Ended

December 31, 2021 % Change

December 31,2021

September 30,2021

December 31,2020

Qtr-o-Qtr

Yr-o-Yr

December 31,2021

December 31,2020

Yr-o-Yr

Loans:

Commercial:

C&I (1)

$

13,592,203

$

13,531,338

$

13,332,194

0.4

%

2.0

%

$

13,656,720

$

13,074,883

4.5

%

CRE:

CRE

11,954,535

11,747,607

11,067,392

1.8

8.0

11,663,144

10,828,037

7.7

Multifamily residential

3,434,274

3,248,281

3,051,472

5.7

12.5

3,213,582

3,009,365

6.8

Construction and land

340,940

415,812

588,665

(18.0

)

(42.1

)

445,333

597,118

(25.4

)

Total CRE

15,729,749

15,411,700

14,707,529

2.1

7.0

15,322,059

14,434,520

6.1

Consumer:

Residential mortgage:

Single-family residential

9,031,677

8,962,533

7,990,035

0.8

13.0

8,742,565

7,613,706

14.8

HELOCs

2,052,383

1,912,629

1,558,781

7.3

31.7

1,859,073

1,480,516

25.6

Total residential mortgage

11,084,060

10,875,162

9,548,816

1.9

16.1

10,601,638

9,094,222

16.6

Other consumer

126,557

141,951

137,186

(10.8

)

(7.7

)

136,280

195,392

(30.3

)

Total loans (2)

$

40,532,569

$

39,960,151

$

37,725,725

1.4

%

7.4

%

$

39,716,697

$

36,799,017

7.9

%

Interest-earning assets

$

58,944,082

$

58,239,480

$

49,703,349

1.2

%

18.6

%

$

56,256,388

$

46,239,709

21.7

%

Total assets

$

62,183,137

$

61,359,533

$

52,466,325

1.3

%

18.5

%

$

59,251,091

$

48,937,793

21.1

%

Deposits:

Noninterest-bearing demand

$

24,019,333

$

23,169,323

$

16,311,010

3.7

%

47.3

%

$

21,271,410

$

13,823,152

53.9

%

Interest-bearing checking

6,462,471

6,646,515

6,067,849

(2.8

)

6.5

6,543,817

5,357,934

22.1

Money market

12,920,174

12,604,827

10,626,940

2.5

21.6

12,428,025

9,881,284

25.8

Savings

2,841,352

2,792,702

2,450,980

1.7

15.9

2,746,933

2,234,913

22.9

Time deposits

8,072,917

8,283,265

8,965,337

(2.5

)

(10.0

)

8,493,511

9,465,608

(10.3

)

Total deposits

$

54,316,247

$

53,496,632

$

44,422,116

1.5

%

22.3

%

$

51,483,696

$

40,762,891

26.3

%

Interest-bearing liabilities

$

31,011,536

$

31,039,410

$

29,666,559

(0.1

)%

4.5

%

$

31,077,459

$

28,798,277

7.9

%

Stockholders' equity

$

5,786,237

$

5,680,306

$

5,243,203

1.9

%

10.4

%

$

5,559,212

$

5,082,186

9.4

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED AVERAGE BALANCES

($ in thousands)

(unaudited)

Table 5



December 31, 2021 December Three Months Ended % Change Year Ended 31, 2021 % Change

December 31, September December 31, December 31, December 31, 2021 30, 2020 Qtr-o-Qtr Yr-o-Yr 2021 2020 Yr-o-Yr 2021

Loans:

Commercial:

C&I ^(1) $ 13,592,203 $ 13,531,338 $ 13,332,194 0.4 % 2.0 % $ 13,656,720 $ 13,074,883 4.5 %

CRE:

CRE 11,954,535 11,747,607 11,067,392 1.8 8.0 11,663,144 10,828,037 7.7

Multifamily 3,434,274 3,248,281 3,051,472 5.7 12.5 3,213,582 3,009,365 6.8 residential

Construction and 340,940 415,812 588,665 (18.0 ) (42.1 ) 445,333 597,118 (25.4 )land

Total CRE 15,729,749 15,411,700 14,707,529 2.1 7.0 15,322,059 14,434,520 6.1

Consumer:

Residential mortgage:

Single-family 9,031,677 8,962,533 7,990,035 0.8 13.0 8,742,565 7,613,706 14.8 residential

HELOCs 2,052,383 1,912,629 1,558,781 7.3 31.7 1,859,073 1,480,516 25.6

Total residential 11,084,060 10,875,162 9,548,816 1.9 16.1 10,601,638 9,094,222 16.6 mortgage

Other consumer 126,557 141,951 137,186 (10.8 ) (7.7 ) 136,280 195,392 (30.3 )

Total loans ^(2) $ 40,532,569 $ 39,960,151 $ 37,725,725 1.4 % 7.4 % $ 39,716,697 $ 36,799,017 7.9 %



Interest-earning $ 58,944,082 $ 58,239,480 $ 49,703,349 1.2 % 18.6 % $ 56,256,388 $ 46,239,709 21.7 %assets

Total assets $ 62,183,137 $ 61,359,533 $ 52,466,325 1.3 % 18.5 % $ 59,251,091 $ 48,937,793 21.1 %



Deposits:

Noninterest-bearing $ 24,019,333 $ 23,169,323 $ 16,311,010 3.7 % 47.3 % $ 21,271,410 $ 13,823,152 53.9 %demand

Interest-bearing 6,462,471 6,646,515 6,067,849 (2.8 ) 6.5 6,543,817 5,357,934 22.1 checking

Money market 12,920,174 12,604,827 10,626,940 2.5 21.6 12,428,025 9,881,284 25.8

Savings 2,841,352 2,792,702 2,450,980 1.7 15.9 2,746,933 2,234,913 22.9

Time deposits 8,072,917 8,283,265 8,965,337 (2.5 ) (10.0 ) 8,493,511 9,465,608 (10.3 )

Total deposits $ 54,316,247 $ 53,496,632 $ 44,422,116 1.5 % 22.3 % $ 51,483,696 $ 40,762,891 26.3 %



Interest-bearing $ 31,011,536 $ 31,039,410 $ 29,666,559 (0.1 )% 4.5 % $ 31,077,459 $ 28,798,277 7.9 %liabilities

Stockholders' $ 5,786,237 $ 5,680,306 $ 5,243,203 1.9 % 10.4 % $ 5,559,212 $ 5,082,186 9.4 %equity

(1)

Includes average balances of PPP loans of $677.2 million, $1.11 billion and $1.70 billion for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $1.39 billion and $1.24 billion for the years ended December 31, 2021 and 2020, respectively.

(2)

Includes loans HFS.

Includes average balances of PPP loans of $677.2 million, $1.11 billion(1) and $1.70 billion for the three months ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively, and $1.39 billion and $1.24 billion for the years ended December 31, 2021 and 2020, respectively.

(2) Includes loans HFS.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 6

Three Months Ended

December 31, 2021

September 30, 2021

Average

Average

Average

Average

Balance

Interest

Yield/Rate (1)

Balance

Interest

Yield/Rate (1)

Assets

Interest-earning assets:

Interest-bearing cash and deposits with banks

$

6,050,870

$

3,750

0.25

%

$

7,036,823

$

4,521

0.25

%

Resale agreements

2,440,636

9,162

1.49

%

2,382,741

8,957

1.49

%

AFS debt securities

9,842,691

42,367

1.71

%

8,782,682

37,826

1.71

%

Loans (2)

40,532,569

366,936

3.59

%

39,960,151

363,503

3.61

%

FHLB and FRB stock

77,316

493

2.53

%

77,083

500

2.57

%

Total interest-earning assets

58,944,082

422,708

2.85

%

58,239,480

415,307

2.83

%

Noninterest-earning assets:

Cash and due from banks

652,126

627,640

Allowance for loan losses

(558,645

)

(584,827

)

Other assets

3,145,574

3,077,240

Total assets

$

62,183,137

$

61,359,533

Liabilities and Stockholders' Equity

Interest-bearing liabilities:

Checking deposits

$

6,462,471

$

1,846

0.11

%

$

6,646,515

$

3,186

0.19

%

Money market deposits

12,920,174

3,172

0.10

%

12,604,827

3,446

0.11

%

Savings deposits

2,841,352

1,734

0.24

%

2,792,702

1,943

0.28

%

Time deposits

8,072,917

6,617

0.33

%

8,283,265

7,395

0.35

%

Federal funds purchased and other short-term borrowings

730

-

-

%

620

-

-

%

FHLB advances

249,048

856

1.36

%

248,614

857

1.37

%

Repurchase agreements

313,075

2,018

2.56

%

310,997

2,012

2.57

%

Long-term debt and finance lease liabilities

151,769

768

2.01

%

151,870

762

1.99

%

Total interest-bearing liabilities

31,011,536

17,011

0.22

%

31,039,410

19,601

0.25

%

Noninterest-bearing liabilities and stockholders' equity:

Demand deposits

24,019,333

23,169,323

Accrued expenses and other liabilities

1,366,031

1,470,494

Stockholders' equity

5,786,237

5,680,306

Total liabilities and stockholders' equity

$

62,183,137

$

61,359,533

Interest rate spread

2.63

%

2.58

%

Net interest income and net interest margin

$

405,697

2.73

%

$

395,706

2.70

%

Adjusted net interest income and adjusted net interest margin (3)

$

396,105

2.70

%

$

380,494

2.64

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 6



Three Months Ended

December 31, 2021 September 30, 2021

Average Average Average Average

Yield/ Yield/ Balance Interest Rate ^ Balance Interest Rate ^ (1) (1)

Assets

Interest-earning assets:

Interest-bearingcash and deposits $ 6,050,870 $ 3,750 0.25 % $ 7,036,823 $ 4,521 0.25 %with banks

Resale agreements 2,440,636 9,162 1.49 % 2,382,741 8,957 1.49 %

AFS debt securities 9,842,691 42,367 1.71 % 8,782,682 37,826 1.71 %

Loans ^(2) 40,532,569 366,936 3.59 % 39,960,151 363,503 3.61 %

FHLB and FRB stock 77,316 493 2.53 % 77,083 500 2.57 %

Totalinterest-earning 58,944,082 422,708 2.85 % 58,239,480 415,307 2.83 %assets



Noninterest-earning assets:

Cash and due from 652,126 627,640 banks

Allowance for loan (558,645 ) (584,827 ) losses

Other assets 3,145,574 3,077,240

Total assets $ 62,183,137 $ 61,359,533



Liabilities andStockholders' Equity

Interest-bearing liabilities:

Checking deposits $ 6,462,471 $ 1,846 0.11 % $ 6,646,515 $ 3,186 0.19 %

Money market 12,920,174 3,172 0.10 % 12,604,827 3,446 0.11 %deposits

Savings deposits 2,841,352 1,734 0.24 % 2,792,702 1,943 0.28 %

Time deposits 8,072,917 6,617 0.33 % 8,283,265 7,395 0.35 %

Federal fundspurchased and other 730 - - % 620 - - %short-termborrowings

FHLB advances 249,048 856 1.36 % 248,614 857 1.37 %

Repurchase 313,075 2,018 2.56 % 310,997 2,012 2.57 %agreements

Long-term debt andfinance lease 151,769 768 2.01 % 151,870 762 1.99 %liabilities

Totalinterest-bearing 31,011,536 17,011 0.22 % 31,039,410 19,601 0.25 %liabilities



Noninterest-bearingliabilities and stockholders'equity:

Demand deposits 24,019,333 23,169,323

Accrued expensesand other 1,366,031 1,470,494 liabilities

Stockholders' 5,786,237 5,680,306 equity

Total liabilitiesand stockholders' $ 62,183,137 $ 61,359,533 equity



Interest rate 2.63 % 2.58 %spread

Net interest incomeand net interest $ 405,697 2.73 % $ 395,706 2.70 %margin

Adjusted netinterest income andadjusted net $ 396,105 2.70 % $ 380,494 2.64 %interest margin ^(3)

(1)

Annualized.

(2)

Includes loans HFS. Average balances of PPP loans were $677.2 million and $1.11 billion for the three months ended December 31, 2021 and September 30, 2021, respectively.

(3)

Net interest income and net interest margin for the three months ended December 31, 2021 and September 30, 2021 have been adjusted for the impact of PPP loans. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

(1) Annualized.

Includes loans HFS. Average balances of PPP loans were $677.2 million and(2) $1.11 billion for the three months ended December 31, 2021 and September 30, 2021, respectively.

Net interest income and net interest margin for the three months ended(3) December 31, 2021 and September 30, 2021 have been adjusted for the impact of PPP loans. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 7

Three Months Ended

December 31, 2021

December 31, 2020

Average

Average

Average

Average

Balance

Interest

Yield/Rate(1)

Balance

Interest

Yield/Rate(1)

Assets

Interest-earning assets:

Interest-bearing cash and deposits with banks

$

6,050,870

$

3,750

0.25

%

$

5,609,965

$

4,458

0.32

%

Resale agreements

2,440,636

9,162

1.49

%

1,257,826

4,955

1.57

%

AFS debt securities

9,842,691

42,367

1.71

%

5,029,820

22,914

1.81

%

Loans (2)

40,532,569

366,936

3.59

%

37,725,725

348,578

3.68

%

FHLB and FRB stock

77,316

493

2.53

%

80,013

443

2.20

%

Total interest-earning assets

58,944,082

422,708

2.85

%

49,703,349

381,348

3.05

%

Noninterest-earning assets:

Cash and due from banks

652,126

580,989

Allowance for loan losses

(558,645

)

(618,207

)

Other assets

3,145,574

2,800,194

Total assets

$

62,183,137

$

52,466,325

Liabilities and Stockholders' Equity

Interest-bearing liabilities:

Checking deposits

$

6,462,471

$

1,846

0.11

%

$

6,067,849

$

4,218

0.28

%

Money market deposits

12,920,174

3,172

0.10

%

10,626,940

5,542

0.21

%

Savings deposits

2,841,352

1,734

0.24

%

2,450,980

1,655

0.27

%

Time deposits

8,072,917

6,617

0.33

%

8,965,337

16,727

0.74

%

Federal funds purchased and other short-term borrowings

730

-

-

%

47,500

276

2.31

%

FHLB advances

249,048

856

1.36

%

653,748

3,137

1.91

%

Repurchase agreements

313,075

2,018

2.56

%

335,737

2,080

2.46

%

Long-term debt and finance lease liabilities

151,769

768

2.01

%

518,468

(3

)

1,132

0.87

%

Total interest-bearing liabilities

31,011,536

17,011

0.22

%

29,666,559

34,767

0.47

%

Noninterest-bearing liabilities and stockholders' equity:

Demand deposits

24,019,333

16,311,010

Accrued expenses and other liabilities

1,366,031

1,245,553

Stockholders' equity

5,786,237

5,243,203

Total liabilities and stockholders' equity

$

62,183,137

$

52,466,325

Interest rate spread

2.63

%

2.58

%

Net interest income and net interest margin

$

405,697

2.73

%

$

346,581

2.77

%

Adjusted net interest income and adjusted net interest margin (4)

$

396,105

2.70

%

$

332,701

2.76

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 7



Three Months Ended

December 31, 2021 December 31, 2020

Average Average Average Average

Yield/ Yield/ Balance Interest Rate^ Balance Interest Rate^ (1) (1)

Assets

Interest-earning assets:

Interest-bearingcash and deposits $ 6,050,870 $ 3,750 0.25 % $ 5,609,965 $ 4,458 0.32 %with banks

Resale agreements 2,440,636 9,162 1.49 % 1,257,826 4,955 1.57 %

AFS debt securities 9,842,691 42,367 1.71 % 5,029,820 22,914 1.81 %

Loans ^(2) 40,532,569 366,936 3.59 % 37,725,725 348,578 3.68 %

FHLB and FRB stock 77,316 493 2.53 % 80,013 443 2.20 %

Totalinterest-earning 58,944,082 422,708 2.85 % 49,703,349 381,348 3.05 %assets



Noninterest-earning assets:

Cash and due from 652,126 580,989 banks

Allowance for loan (558,645 ) (618,207 ) losses

Other assets 3,145,574 2,800,194

Total assets $ 62,183,137 $ 52,466,325



Liabilities andStockholders' Equity

Interest-bearing liabilities:

Checking deposits $ 6,462,471 $ 1,846 0.11 % $ 6,067,849 $ 4,218 0.28 %

Money market 12,920,174 3,172 0.10 % 10,626,940 5,542 0.21 %deposits

Savings deposits 2,841,352 1,734 0.24 % 2,450,980 1,655 0.27 %

Time deposits 8,072,917 6,617 0.33 % 8,965,337 16,727 0.74 %

Federal fundspurchased and other 730 - - % 47,500 276 2.31 %short-termborrowings

FHLB advances 249,048 856 1.36 % 653,748 3,137 1.91 %

Repurchase 313,075 2,018 2.56 % 335,737 2,080 2.46 %agreements

Long-term debt and ^finance lease 151,769 768 2.01 % 518,468 (3 ^) 1,132 0.87 %liabilities

Totalinterest-bearing 31,011,536 17,011 0.22 % 29,666,559 34,767 0.47 %liabilities



Noninterest-bearingliabilities and stockholders'equity:

Demand deposits 24,019,333 16,311,010

Accrued expensesand other 1,366,031 1,245,553 liabilities

Stockholders' 5,786,237 5,243,203 equity

Total liabilitiesand stockholders' $ 62,183,137 $ 52,466,325 equity



Interest rate 2.63 % 2.58 %spread

Net interest incomeand net interest $ 405,697 2.73 % $ 346,581 2.77 %margin

Adjusted netinterest income andadjusted net $ 396,105 2.70 % $ 332,701 2.76 %interest margin ^(4)

(1)

Annualized.

(2)

Includes loans HFS. Average balances of PPP loans were $677.2 million and $1.70 billion for the three months ended December 31, 2021 and 2020, respectively.

(3)

Primarily includes average balances from the Federal Reserve Paycheck Protection Program Liquidity Facility ("PPPLF"), which was repaid in full during the fourth quarter of 2020.

(4)

Net interest income and net interest margin for the three months ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans. Net interest margin for the three months ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

(1) Annualized.

Includes loans HFS. Average balances of PPP loans were $677.2 million and(2) $1.70 billion for the three months ended December 31, 2021 and 2020, respectively.

Primarily includes average balances from the Federal Reserve Paycheck(3) Protection Program Liquidity Facility ("PPPLF"), which was repaid in full during the fourth quarter of 2020.

Net interest income and net interest margin for the three months ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans.(4) Net interest margin for the three months ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 8

Year Ended

December 31, 2021

December 31, 2020

Average

Average

Average

Average

Balance

Interest

Yield/Rate

Balance

Interest

Yield/Rate

Assets

Interest-earning assets:

Interest-bearing cash and deposits with banks

$

6,071,896

$

15,531

0.26

%

$

4,236,430

$

25,175

0.59

%

Resale agreements (1)

2,107,157

32,239

1.53

%

1,101,434

21,389

1.94

%

AFS debt securities

8,281,234

143,983

1.74

%

4,023,668

82,553

2.05

%

Loans (2)

39,716,697

1,424,900

3.59

%

36,799,017

1,464,382

3.98

%

FHLB and FRB stock

79,404

2,081

2.62

%

79,160

1,543

1.95

%

Total interest-earning assets

56,256,388

1,618,734

2.88

%

46,239,709

1,595,042

3.45

%

Noninterest-earning assets:

Cash and due from banks

615,255

528,406

Allowance for loan losses

(592,211

)

(577,560

)

Other assets

2,971,659

2,747,238

Total assets

$

59,251,091

$

48,937,793

Liabilities and Stockholders' Equity

Interest-bearing liabilities:

Checking deposits

$

6,543,817

$

13,023

0.20

%

$

5,357,934

$

24,213

0.45

%

Money market deposits

12,428,025

15,041

0.12

%

9,881,284

42,720

0.43

%

Savings deposits

2,746,933

7,496

0.27

%

2,234,913

6,398

0.29

%

Time deposits

8,493,511

33,599

0.40

%

9,465,608

111,411

1.18

%

Federal funds purchased and other short-term borrowings

1,584

42

2.65

%

108,398

1,504

1.39

%

FHLB advances

404,789

6,881

1.70

%

664,370

13,792

2.08

%

Repurchase agreements (1)

306,845

7,999

2.61

%

350,849

11,766

3.35

%

Long-term debt and finance lease liabilities

151,955

3,082

2.03

%

734,921

(3

)

6,045

0.82

%

Total interest-bearing liabilities

31,077,459

87,163

0.28

%

28,798,277

217,849

0.76

%

Noninterest-bearing liabilities and stockholders' equity:

Demand deposits

21,271,410

13,823,152

Accrued expenses and other liabilities

1,343,010

1,234,178

Stockholders' equity

5,559,212

5,082,186

Total liabilities and stockholders' equity

$

59,251,091

$

48,937,793

Interest rate spread

2.60

%

2.69

%

Net interest income and net interest margin

$

1,531,571

2.72

%

$

1,377,193

2.98

%

Adjusted net interest income and adjusted net interest margin (4)

$

1,476,373

2.69

%

$

1,335,968

2.97

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES

($ in thousands)

(unaudited)

Table 8



Year Ended

December 31, 2021 December 31, 2020 Average Average Average Average

Balance Interest Yield/ Balance Interest Yield/ Rate Rate

Assets

Interest-earning assets:

Interest-bearingcash and deposits $ 6,071,896 $ 15,531 0.26 % $ 4,236,430 $ 25,175 0.59 %with banks

Resale agreements ^ 2,107,157 32,239 1.53 % 1,101,434 21,389 1.94 %(1)

AFS debt securities 8,281,234 143,983 1.74 % 4,023,668 82,553 2.05 %

Loans^ (2) 39,716,697 1,424,900 3.59 % 36,799,017 1,464,382 3.98 %

FHLB and FRB stock 79,404 2,081 2.62 % 79,160 1,543 1.95 %

Totalinterest-earning 56,256,388 1,618,734 2.88 % 46,239,709 1,595,042 3.45 %assets



Noninterest-earning assets:

Cash and due from 615,255 528,406 banks

Allowance for loan (592,211 ) (577,560 ) losses

Other assets 2,971,659 2,747,238

Total assets $ 59,251,091 $ 48,937,793



Liabilities andStockholders' Equity

Interest-bearing liabilities:

Checking deposits $ 6,543,817 $ 13,023 0.20 % $ 5,357,934 $ 24,213 0.45 %

Money market 12,428,025 15,041 0.12 % 9,881,284 42,720 0.43 %deposits

Savings deposits 2,746,933 7,496 0.27 % 2,234,913 6,398 0.29 %

Time deposits 8,493,511 33,599 0.40 % 9,465,608 111,411 1.18 %

Federal fundspurchased and other 1,584 42 2.65 % 108,398 1,504 1.39 %short-termborrowings

FHLB advances 404,789 6,881 1.70 % 664,370 13,792 2.08 %

Repurchase 306,845 7,999 2.61 % 350,849 11,766 3.35 %agreements ^(1)

Long-term debt and ^finance lease 151,955 3,082 2.03 % 734,921 (3 ^) 6,045 0.82 %liabilities

Totalinterest-bearing 31,077,459 87,163 0.28 % 28,798,277 217,849 0.76 %liabilities



Noninterest-bearingliabilities and stockholders'equity:

Demand deposits 21,271,410 13,823,152

Accrued expensesand other 1,343,010 1,234,178 liabilities

Stockholders' 5,559,212 5,082,186 equity

Total liabilitiesand stockholders' $ 59,251,091 $ 48,937,793 equity



Interest rate 2.60 % 2.69 %spread

Net interest incomeand net interest $ 1,531,571 2.72 % $ 1,377,193 2.98 %margin

Adjusted netinterest income andadjusted net $ 1,476,373 2.69 % $ 1,335,968 2.97 %interest margin ^(4)



(1)

Average balances of resale and repurchase agreements for the year ended December 31, 2020 have been reported net, pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale and gross repurchase agreements for the year ended December 31, 2020 were 1.94% and 3.25%, respectively.

(2)

Includes loans HFS. Average balances of PPP loans were $1.39 billion and $1.24 billion for the years ended December 31, 2021 and 2020, respectively.

(3)

Primarily includes average balances of PPPLF, which was repaid in full during the fourth quarter of 2020.

(4)

Net interest income and net interest margin for the year ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans. Net interest margin for the year ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

Average balances of resale and repurchase agreements for the year ended December 31, 2020 have been reported net, pursuant to ASC 210-20-45-11,(1) Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. The weighted-average yields of gross resale and gross repurchase agreements for the year ended December 31, 2020 were 1.94% and 3.25%, respectively.

Includes loans HFS. Average balances of PPP loans were $1.39 billion and(2) $1.24 billion for the years ended December 31, 2021 and 2020, respectively.

(3) Primarily includes average balances of PPPLF, which was repaid in full during the fourth quarter of 2020.

Net interest income and net interest margin for the year ended December 31, 2021 and 2020 have been adjusted for the impact of PPP loans. Net(4) interest margin for the year ended December 31, 2020 has been adjusted for advances from the PPPLF. See reconciliation of GAAP to non-GAAP financial measures in Table 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED RATIOS

(unaudited)

Table 9

Three Months Ended (1)

December 31, 2021 Basis Point Change

December 31, 2021

September 30,2021

December 31, 2020

Qtr-o-Qtr

Yr-o-Yr

Return on average assets

1.39

%

1.46

%

1.24

%

(7

)

bps

15

bps

Return on average equity

14.93

%

15.75

%

12.45

%

(82

)

248

Return on average tangible equity (2)

16.32

%

17.25

%

13.77

%

(93

)

255

Adjusted return on average tangible equity (2)

16.32

%

17.25

%

13.56

%

(93

)

276

Interest rate spread

2.63

%

2.58

%

2.58

%

5

5

Net interest margin

2.73

%

2.70

%

2.77

%

3

(4

)

Adjusted net interest margin (2)

2.70

%

2.64

%

2.76

%

6

(6

)

Average loan yield

3.59

%

3.61

%

3.68

%

(2

)

(9

)

Adjusted average loan yield (2)

3.56

%

3.56

%

3.69

%

-

(13

)

Yield on average interest-earning assets

2.85

%

2.83

%

3.05

%

2

(20

)

Average cost of interest-bearing deposits

0.18

%

0.21

%

0.40

%

(3

)

(22

)

Average cost of deposits

0.10

%

0.12

%

0.25

%

(2

)

(15

)

Average cost of funds

0.12

%

0.14

%

0.30

%

(2

)

(18

)

Adjusted pre-tax, pre-provision profitability ratio (2)

1.91

%

1.95

%

1.90

%

(4

)

1

Adjusted noninterest expense/average assets (2)

1.13

%

1.08

%

1.26

%

5

(13

)

Efficiency ratio

44.03

%

43.81

%

42.90

%

22

113

Adjusted efficiency ratio (2)

37.24

%

35.55

%

39.76

%

169

bps

(252

)

bps

Year Ended

December 31, 2021 Basis Point Change

December 31, 2021

December 31, 2020

Yr-o-Yr

Return on average assets

1.47

%

1.16

%

31

bps

Return on average equity

15.70

%

11.17

%

453

Return on average tangible equity (2)

17.24

%

12.42

%

482

Adjusted return on average tangible equity (2)

17.24

%

12.37

%

487

Interest rate spread

2.60

%

2.69

%

(9

)

Net interest margin

2.72

%

2.98

%

(26

)

Adjusted net interest margin (2)

2.69

%

2.97

%

(28

)

Average loan yield

3.59

%

3.98

%

(39

)

Adjusted average loan yield (2)

3.57

%

4.00

%

(43

)

Yield on average interest-earning assets

2.88

%

3.45

%

(57

)

Average cost of interest-bearing deposits

0.23

%

0.69

%

(46

)

Average cost of deposits

0.13

%

0.45

%

(32

)

Average cost of funds

0.17

%

0.51

%

(34

)

Adjusted pre-tax, pre-provision profitability ratio (2)

1.94

%

2.00

%

(6

)

Adjusted noninterest expense/average assets (2)

1.13

%

1.30

%

(17

)

Efficiency ratio

43.80

%

44.42

%

(62

)

Adjusted efficiency ratio (2)

36.91

%

39.30

%

(239

)

bps

EAST WEST BANCORP, INC. AND SUBSIDIARIES

SELECTED RATIOS

(unaudited)

Table 9



Three Months Ended ^(1) December 31, 2021 Basis Point Change

December September December 31, 30, 31, Qtr-o-Qtr Yr-o-Yr 2021 2021 2020

Return on 1.39 % 1.46 % 1.24 % (7 ) bps 15 bpsaverage assets

Return on 14.93 % 15.75 % 12.45 % (82 ) 248 average equity

Return onaverage tangible 16.32 % 17.25 % 13.77 % (93 ) 255 equity ^(2)

Adjusted returnon average 16.32 % 17.25 % 13.56 % (93 ) 276 tangible equity^(2)

Interest rate 2.63 % 2.58 % 2.58 % 5 5 spread

Net interest 2.73 % 2.70 % 2.77 % 3 (4 ) margin

Adjusted netinterest margin 2.70 % 2.64 % 2.76 % 6 (6 ) ^(2)

Average loan 3.59 % 3.61 % 3.68 % (2 ) (9 ) yield

Adjusted average 3.56 % 3.56 % 3.69 % - (13 ) loan yield ^(2)

Yield on averageinterest-earning 2.85 % 2.83 % 3.05 % 2 (20 ) assets

Average cost ofinterest-bearing 0.18 % 0.21 % 0.40 % (3 ) (22 ) deposits

Average cost of 0.10 % 0.12 % 0.25 % (2 ) (15 ) deposits

Average cost of 0.12 % 0.14 % 0.30 % (2 ) (18 ) funds

Adjustedpre-tax,pre-provision 1.91 % 1.95 % 1.90 % (4 ) 1 profitabilityratio ^(2)

Adjustednoninterest 1.13 % 1.08 % 1.26 % 5 (13 ) expense/averageassets ^(2)

Efficiency ratio 44.03 % 43.81 % 42.90 % 22 113

Adjustedefficiency ratio 37.24 % 35.55 % 39.76 % 169 bps (252 ) bps^(2)





December 31, Year Ended 2021 Basis Point Change

December December 31, 31, Yr-o-Yr 2021 2020

Return on 1.47 % 1.16 % 31 bps average assets

Return on 15.70 % 11.17 % 453 average equity

Return onaverage tangible 17.24 % 12.42 % 482 equity ^(2)

Adjusted returnon average 17.24 % 12.37 % 487 tangible equity^(2)

Interest rate 2.60 % 2.69 % (9 ) spread

Net interest 2.72 % 2.98 % (26 ) margin

Adjusted netinterest margin 2.69 % 2.97 % (28 ) ^(2)

Average loan 3.59 % 3.98 % (39 ) yield

Adjusted average 3.57 % 4.00 % (43 ) loan yield ^(2)

Yield on averageinterest-earning 2.88 % 3.45 % (57 ) assets

Average cost ofinterest-bearing 0.23 % 0.69 % (46 ) deposits

Average cost of 0.13 % 0.45 % (32 ) deposits

Average cost of 0.17 % 0.51 % (34 ) funds

Adjustedpre-tax,pre-provision 1.94 % 2.00 % (6 ) profitabilityratio ^(2)

Adjustednoninterest 1.13 % 1.30 % (17 ) expense/averageassets ^(2)

Efficiency ratio 43.80 % 44.42 % (62 )

Adjustedefficiency ratio 36.91 % 39.30 % (239 ) bps ^(2)



(1)

Annualized except for efficiency ratio.

(2)

See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13 and 14.

(1) Annualized except for efficiency ratio.

(2) See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13 and 14.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 10

Three Months Ended December 31, 2021

Commercial

Consumer

C&I

Total CRE

Total Residential Mortgage

Other Consumer

Total

Allowance for loan losses, September 30, 2021

$

342,142

$

192,260

$

21,684

$

4,318

$

560,404

Provision for (reversal of) credit losses on loans

(a)

2,397

(9,416

)

(1,519

)

(940

)

(9,478

)

Gross charge-offs

(12,328

)

(2,872

)

-

(1,454

)

(16,654

)

Gross recoveries

5,605

836

430

-

6,871

Total net (charge-offs) recoveries

(6,723

)

(2,036

)

430

(1,454

)

(9,783

)

Foreign currency translation adjustment

436

-

-

-

436

Allowance for loan losses, December 31, 2021

$

338,252

$

180,808

$

20,595

$

1,924

$

541,579

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 10

Three Months Ended December 31, 2021

Commercial Consumer

Total Other C&I Total CRE Residential Consumer Total Mortgage

Allowance forloan losses, $ 342,142 $ 192,260 $ 21,684 $ 4,318 $ 560,404 September 30,2021

Provision for(reversal of) (a) 2,397 (9,416 ) (1,519 ) (940 ) (9,478 )credit losseson loans

Gross (12,328 ) (2,872 ) - (1,454 ) (16,654 )charge-offs

Gross 5,605 836 430 - 6,871 recoveries

Total net(charge-offs) (6,723 ) (2,036 ) 430 (1,454 ) (9,783 )recoveries

Foreigncurrency 436 - - - 436 translationadjustment

Allowance forloan losses, $ 338,252 $ 180,808 $ 20,595 $ 1,924 $ 541,579 December 31,2021

Three Months Ended September 30, 2021

Commercial

Consumer

C&I

Total CRE

Total Residential Mortgage

Other Consumer

Total

Allowance for loan losses, June 30, 2021

$

362,528

$

199,530

$

19,468

$

4,198

$

585,724

(Reversal of) provision for credit losses on loans

(a)

(23,365

)

8,527

2,972

130

(11,736

)

Gross charge-offs

(1,154

)

(16,903

)

(912

)

(10

)

(18,979

)

Gross recoveries

4,203

1,106

156

-

5,465

Total net recoveries (charge-offs)

3,049

(15,797

)

(756

)

(10

)

(13,514

)

Foreign currency translation adjustment

(70

)

-

-

-

(70

)

Allowance for loan losses, September 30, 2021

$

342,142

$

192,260

$

21,684

$

4,318

$

560,404

Three Months Ended September 30, 2021

Commercial Consumer

Total Other C&I Total CRE Residential Consumer Total Mortgage

Allowance forloan losses, $ 362,528 $ 199,530 $ 19,468 $ 4,198 $ 585,724 June 30, 2021

(Reversal of)provision for (a) (23,365 ) 8,527 2,972 130 (11,736 )credit losseson loans

Gross (1,154 ) (16,903 ) (912 ) (10 ) (18,979 )charge-offs

Gross 4,203 1,106 156 - 5,465 recoveries

Total netrecoveries 3,049 (15,797 ) (756 ) (10 ) (13,514 )(charge-offs)

Foreigncurrency (70 ) - - - (70 )translationadjustment

Allowance forloan losses, $ 342,142 $ 192,260 $ 21,684 $ 4,318 $ 560,404 September 30,2021

Three Months Ended December 31, 2020

Commercial

Consumer

C&I

Total CRE

Total Residential Mortgage

Other Consumer

Total

Allowance for loan losses, September 30, 2020

$

389,021

$

201,018

$

25,895

$

2,318

$

618,252

Provision for (reversal of) credit losses on loans

(a)

15,041

12,837

(7,848

)

(184

)

19,846

Gross charge-offs

(8,759

)

(12,518

)

-

(5

)

(21,282

)

Gross recoveries

2,033

266

163

1

2,463

Total net (charge-offs) recoveries

(6,726

)

(12,252

)

163

(4

)

(18,819

)

Foreign currency translation adjustment

704

-

-

-

704

Allowance for loan losses, December 31, 2020

$

398,040

$

201,603

$

18,210

$

2,130

$

619,983

Three Months Ended December 31, 2020

Commercial Consumer

Total Other C&I Total CRE Residential Consumer Total Mortgage

Allowance forloan losses, $ 389,021 $ 201,018 $ 25,895 $ 2,318 $ 618,252 September 30,2020

Provision for(reversal of) (a) 15,041 12,837 (7,848 ) (184 ) 19,846 credit losseson loans

Gross (8,759 ) (12,518 ) - (5 ) (21,282 )charge-offs

Gross 2,033 266 163 1 2,463 recoveries

Total net(charge-offs) (6,726 ) (12,252 ) 163 (4 ) (18,819 )recoveries

Foreigncurrency 704 - - - 704 translationadjustment

Allowance forloan losses, $ 398,040 $ 201,603 $ 18,210 $ 2,130 $ 619,983 December 31,2020

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 10 (continued)

Year Ended December 31, 2021

Commercial

Consumer

C&I

Total CRE

Total Residential Mortgage

Other Consumer

Total

Allowance for loan losses, December 31, 2020

$

398,040

$

201,603

$

18,210

$

2,130

$

619,983

(Reversal of) provision for credit losses on loans

(a)

(39,715

)

6,782

2,710

1,286

(28,937

)

Gross charge-offs

(32,490

)

(31,514

)

(1,091

)

(1,497

)

(66,592

)

Gross recoveries

11,906

3,937

766

5

16,614

Total net charge-offs

(20,584

)

(27,577

)

(325

)

(1,492

)

(49,978

)

Foreign currency translation adjustment

511

-

-

-

511

Allowance for loan losses, December 31, 2021

$

338,252

$

180,808

$

20,595

$

1,924

$

541,579

EAST WEST BANCORP, INC. AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES & OFF-BALANCE-SHEET CREDIT EXPOSURES

($ in thousands)

(unaudited)

Table 10 (continued)

Year Ended December 31, 2021

Commercial Consumer

Total Other C&I Total CRE Residential Consumer Total Mortgage

Allowancefor loanlosses, $ 398,040 $ 201,603 $ 18,210 $ 2,130 $ 619,983 December31, 2020

(Reversalof)provision (a) (39,715 ) 6,782 2,710 1,286 (28,937 )for creditlosses onloans

Gross (32,490 ) (31,514 ) (1,091 ) (1,497 ) (66,592 )charge-offs

Gross 11,906 3,937 766 5 16,614 recoveries

Total net (20,584 ) (27,577 ) (325 ) (1,492 ) (49,978 )charge-offs

Foreigncurrency 511 - - - 511 translationadjustment

Allowancefor loanlosses, $ 338,252 $ 180,808 $ 20,595 $ 1,924 $ 541,579 December31, 2021



Year Ended December 31, 2020

Commercial

Consumer

C&I

Total CRE

Total Residential Mortgage

Other Consumer

Total

Allowance for loan losses, December 31, 2019

$

238,376

$

82,739

$

33,792

$

3,380

$

358,287

Impact of ASU 2016-13 adoption

74,237

54,168

(5,468

)

2,221

125,158

Allowance for loan losses, January 1, 2020

$

312,613

$

136,907

$

28,324

$

5,601

$

483,445

Provision for (reversal of) credit losses on loans

(a)

145,212

67,387

(10,527

)

(3,381

)

198,691

Gross charge-offs

(66,225

)

(15,206

)

(221

)

(185

)

(81,837

)

Gross recoveries

5,428

12,515

634

95

18,672

Total net (charge-offs) recoveries

(60,797

)

(2,691

)

413

(90

)

(63,165

)

Foreign currency translation adjustment

1,012

-

-

-

1,012

Allowance for loan losses, December 31, 2020

$

398,040

$

201,603

$

18,210

$

2,130

$

619,983



Year Ended December 31, 2020

Commercial Consumer

Total Other C&I Total CRE Residential Consumer Total Mortgage

Allowance forloan losses, $ 238,376 $ 82,739 $ 33,792 $ 3,380 $ 358,287 December 31,2019

Impact of ASU2016-13 74,237 54,168 (5,468 ) 2,221 125,158 adoption

Allowance forloan losses, $ 312,613 $ 136,907 $ 28,324 $ 5,601 $ 483,445 January 1,2020

Provision for(reversal of) (a) 145,212 67,387 (10,527 ) (3,381 ) 198,691 credit losseson loans

Gross (66,225 ) (15,206 ) (221 ) (185 ) (81,837 )charge-offs

Gross 5,428 12,515 634 95 18,672 recoveries

Total net(charge-offs) (60,797 ) (2,691 ) 413 (90 ) (63,165 )recoveries

Foreigncurrency 1,012 - - - 1,012 translationadjustment

Allowance forloan losses, $ 398,040 $ 201,603 $ 18,210 $ 2,130 $ 619,983 December 31,2020

Three Months Ended

Year Ended

December 31, 2021

September 30,2021

December 31, 2020

December 31, 2021

December 31, 2020

Unfunded Credit Facilities

Allowance for unfunded credit commitments, beginning of period (1)

$

28,036

$

26,300

$

29,083

$

33,577

$

11,158

Impact of ASU 2016-13 adoption

-

-

-

-

10,457

(Reversal of) provision for credit losses on unfunded credit commitments

(b)

(522

)

1,736

4,494

(6,063

)

11,962

Allowance for unfunded credit commitments, end of period (1)

$

27,514

$

28,036

$

33,577

$

27,514

$

33,577

(Reversal of) provision for credit losses

(a)+(b)

$

(10,000

)

$

(10,000

)

$

24,340

$

(35,000

)

$

210,653

Three Months Ended Year Ended

December September December December December 31, 30, 31, 31, 31, 2021 2021 2020 2021 2020

UnfundedCredit Facilities

Allowancefor unfundedcredit $ 28,036 $ 26,300 $ 29,083 $ 33,577 $ 11,158commitments,beginning ofperiod ^(1)

Impact ofASU 2016-13 - - - - 10,457adoption

(Reversalof)provisionfor credit (b) (522 ) 1,736 4,494 (6,063 ) 11,962losses onunfundedcreditcommitments

Allowancefor unfundedcredit $ 27,514 $ 28,036 $ 33,577 $ 27,514 $ 33,577commitments,end ofperiod ^(1)



(Reversalof) (a)provision + $ (10,000 ) $ (10,000 ) $ 24,340 $ (35,000 ) $ 210,653for credit (b)losses

(1)

Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

(1) Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS

($ in thousands)

(unaudited)

Table 11

Criticized Loans

December 31, 2021

September 30, 2021

December 31, 2020

Special mention loans

$

384,694

$

448,497

$

564,555

Classified loans

448,362

561,787

652,880

Total criticized loans

$

833,056

$

1,010,284

$

1,217,435

Nonperforming Assets

December 31, 2021

September 30, 2021

December 31, 2020

Nonaccrual loans:

Commercial:

C&I

$

59,023

$

97,157

$

133,939

Total CRE

9,942

15,359

50,214

Consumer:

Total residential mortgage

24,164

18,153

28,510

Other consumer

52

2,491

2,491

Total nonaccrual loans

93,181

133,160

215,154

Other real estate owned, net

363

28,800

15,824

Other nonperforming assets

9,938

10,681

3,890

Total nonperforming assets

$

103,482

$

172,641

$

234,868

Credit Quality Ratios

December 31, 2021

September 30, 2021

December 31, 2020

Annualized quarterly net charge-offs to average loans HFI

0.10

%

0.13

%

0.20

%

Annual net charge-offs to average loans HFI

0.13

%

N/A

0.17

%

Special mention loans to loans HFI

0.92

%

1.11

%

1.47

%

Classified loans to loans HFI

1.08

%

1.39

%

1.70

%

Criticized loans to loans HFI

2.00

%

2.50

%

3.17

%

Nonperforming assets to total assets

0.17

%

0.28

%

0.45

%

Nonaccrual loans to loans HFI

0.22

%

0.33

%

0.56

%

Allowance for loan losses to loans HFI

1.30

%

1.38

%

1.61

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CRITICIZED LOANS, NONPERFORMING ASSETS AND CREDIT QUALITY RATIOS

($ in thousands)

(unaudited)

Table 11

December September 30, December 31,Criticized Loans 31, 2021 2020 2021

Special mention loans $ 384,694 $ 448,497 $ 564,555

Classified loans 448,362 561,787 652,880

Total criticized loans $ 833,056 $ 1,010,284 $ 1,217,435



December September 30, December 31,Nonperforming Assets 31, 2021 2020 2021

Nonaccrual loans:

Commercial:

C&I $ 59,023 $ 97,157 $ 133,939

Total CRE 9,942 15,359 50,214

Consumer:

Total residential mortgage 24,164 18,153 28,510

Other consumer 52 2,491 2,491

Total nonaccrual loans 93,181 133,160 215,154

Other real estate owned, net 363 28,800 15,824

Other nonperforming assets 9,938 10,681 3,890

Total nonperforming assets $ 103,482 $ 172,641 $ 234,868





December September 30, December 31,Credit Quality Ratios 31, 2021 2020 2021

Annualized quarterly net 0.10 % 0.13 % 0.20 %charge-offs to average loans HFI

Annual net charge-offs to average 0.13 % N/A 0.17 %loans HFI

Special mention loans to loans HFI 0.92 % 1.11 % 1.47 %

Classified loans to loans HFI 1.08 % 1.39 % 1.70 %

Criticized loans to loans HFI 2.00 % 2.50 % 3.17 %

Nonperforming assets to total 0.17 % 0.28 % 0.45 %assets

Nonaccrual loans to loans HFI 0.22 % 0.33 % 0.56 %

Allowance for loan losses to loans 1.30 % 1.38 % 1.61 %HFI



EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 12

Adjusted efficiency ratio represents adjusted noninterest expense divided by revenue. Adjusted pre-tax, pre-provision profitability ratio represents revenue less adjusted noninterest expense, divided by average total assets. Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles and the extinguishment cost on repurchase agreements. Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.

Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

Net interest income before provision for credit losses

(a)

$

405,697

$

395,706

$

346,581

Total noninterest income

71,489

73,109

69,832

Total revenue

(b)

$

477,186

$

468,815

$

416,413

Total noninterest expense

(c)

$

210,105

$

205,384

$

178,651

Less: Amortization of tax credit and other investments

(31,800

)

(38,008

)

(12,263

)

Amortization of core deposit intangibles

(602

)

(705

)

(823

)

Adjusted noninterest expense

(d)

$

177,703

$

166,671

$

165,565

Efficiency ratio

(c)/(b)

44.03

%

43.81

%

42.90

%

Adjusted efficiency ratio

(d)/(b)

37.24

%

35.55

%

39.76

%

Adjusted pre-tax, pre-provision income

(b)-(d) = (e)

$

299,483

$

302,144

$

250,848

Average total assets

(f)

$

62,183,137

$

61,359,533

$

52,466,325

Adjusted pre-tax, pre-provision profitability ratio (1)

(e)/(f)

1.91

%

1.95

%

1.90

%

Adjusted noninterest expense/average assets (1)

(d)/(f)

1.13

%

1.08

%

1.26

%

Year Ended

December 31, 2021

December 31, 2020

Net interest income before provision for credit losses

(g)

$

1,531,571

$

1,377,193

Total noninterest income

285,895

235,547

Total revenue

(h)

1,817,466

1,612,740

Total noninterest expense

(i)

$

796,089

$

716,322

Less: Amortization of tax credit and other investments

(122,457

)

(70,082

)

Amortization of core deposit intangibles

(2,749

)

(3,634

)

Repurchase agreements' extinguishment cost

-

(8,740

)

Adjusted noninterest expense

(j)

$

670,883

$

633,866

Efficiency ratio

(i)/(h)

43.80

%

44.42

%

Adjusted efficiency ratio

(j)/(h)

36.91

%

39.30

%

Adjusted pre-tax, pre-provision income

(h)-(j) = (k)

$

1,146,583

$

978,874

Average total assets

(l)

$

59,251,091

$

48,937,793

Adjusted pre-tax, pre-provision profitability ratio

(k)/(l)

1.94

%

2.00

%

Adjusted noninterest expense/average assets

(j)/(l)

1.13

%

1.30

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 12

Adjusted efficiency ratio represents adjusted noninterest expense divided byrevenue. Adjusted pre-tax, pre-provision profitability ratio represents revenueless adjusted noninterest expense, divided by average total assets. Adjustednoninterest expense excludes the amortization of tax credit and otherinvestments, the amortization of core deposit intangibles and theextinguishment cost on repurchase agreements. Management believes that themeasures and ratios presented below provide clarity to financial statementusers regarding the ongoing performance of the Company and allow comparabilityto prior periods.



Three Months Ended

December 31, September 30, December 31, 2021 2021 2020

Net interest incomebefore provision for (a) $ 405,697 $ 395,706 $ 346,581 credit losses

Total noninterest 71,489 73,109 69,832 income

Total revenue (b) $ 477,186 $ 468,815 $ 416,413



Total noninterest (c) $ 210,105 $ 205,384 $ 178,651 expense

Less: Amortizationof tax credit and (31,800 ) (38,008 ) (12,263 )other investments

Amortization of core (602 ) (705 ) (823 )deposit intangibles

Adjusted noninterest (d) $ 177,703 $ 166,671 $ 165,565 expense

Efficiency ratio (c)/ 44.03 % 43.81 % 42.90 % (b)

Adjusted efficiency (d)/ 37.24 % 35.55 % 39.76 %ratio (b)

Adjusted pre-tax, (b)-pre-provision income (d) = $ 299,483 $ 302,144 $ 250,848 (e)

Average total assets (f) $ 62,183,137 $ 61,359,533 $ 52,466,325

Adjusted pre-tax,pre-provision (e)/ 1.91 % 1.95 % 1.90 %profitability ratio (f)^(1)

Adjusted noninterest (d)/expense/average (f) 1.13 % 1.08 % 1.26 %assets ^(1)





Year Ended

December 31, December 31, 2021 2020

Net interest incomebefore provision for (g) $ 1,531,571 $ 1,377,193 credit losses

Total noninterest 285,895 235,547 income

Total revenue (h) 1,817,466 1,612,740



Total noninterest (i) $ 796,089 $ 716,322 expense

Less: Amortizationof tax credit and (122,457 ) (70,082 ) other investments

Amortization of core (2,749 ) (3,634 ) deposit intangibles

Repurchaseagreements' - (8,740 ) extinguishment cost

Adjusted noninterest (j) $ 670,883 $ 633,866 expense

Efficiency ratio (i)/ 43.80 % 44.42 % (h)

Adjusted efficiency (j)/ 36.91 % 39.30 % ratio (h)

Adjusted pre-tax, (h)-pre-provision income (j) = $ 1,146,583 $ 978,874 (k)

Average total assets (l) $ 59,251,091 $ 48,937,793

Adjusted pre-tax, (k)/pre-provision (l) 1.94 % 2.00 % profitability ratio

Adjusted noninterest (j)/expense/average (l) 1.13 % 1.30 % assets



(1)

Annualized.

(1) Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 13

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders' equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

December 31, 2021

September 30, 2021

December 31, 2020

Stockholders' equity

(a)

$

5,837,218

$

5,690,201

$

5,269,175

Less: Goodwill

(465,697

)

(465,697

)

(465,697

)

Other intangible assets (1)

(9,334

)

(9,849

)

(11,899

)

Tangible equity

(b)

$

5,362,187

$

5,214,655

$

4,791,579

Total assets

(c)

$

60,870,701

$

60,959,110

$

52,156,913

Less: Goodwill

(465,697

)

(465,697

)

(465,697

)

Other intangible assets (1)

(9,334

)

(9,849

)

(11,899

)

Tangible assets

(d)

$

60,395,670

$

60,483,564

$

51,679,317

Total stockholders' equity to total assets ratio

(a)/(c)

9.59

%

9.33

%

10.10

%

Tangible equity to tangible assets ratio

(b)/(d)

8.88

%

8.62

%

9.27

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 13

The Company uses certain non-GAAP financial measures to provide supplementalinformation regarding the Company's performance. Tangible equity and tangibleequity to tangible assets ratio are non-GAAP financial measures. Tangibleequity and tangible assets represent stockholders' equity and total assets,respectively, which have been reduced by goodwill and other intangible assets.Given that the use of such measures and ratios is more prevalent in the bankingindustry, and such measures and ratios are used by banking regulators andanalysts, the Company has included them below for discussion.



December 31, September 30, December 31, 2021 2021 2020

Stockholders' equity (a) $ 5,837,218 $ 5,690,201 $ 5,269,175

Less: Goodwill (465,697 ) (465,697 ) (465,697 )

Other intangible (9,334 ) (9,849 ) (11,899 )assets ^(1)

Tangible equity (b) $ 5,362,187 $ 5,214,655 $ 4,791,579



Total assets (c) $ 60,870,701 $ 60,959,110 $ 52,156,913

Less: Goodwill (465,697 ) (465,697 ) (465,697 )

Other intangible (9,334 ) (9,849 ) (11,899 )assets ^(1)

Tangible assets (d) $ 60,395,670 $ 60,483,564 $ 51,679,317

Total stockholders' (a)equity to total assets / 9.59 % 9.33 % 10.10 %ratio (c)

Tangible equity to (b)tangible assets ratio / 8.88 % 8.62 % 9.27 % (d)



Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax impacts of the amortization of core deposit intangibles and mortgage servicing assets, recoveries and uncertain tax position related to DC Solar (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.

Three Months Ended

Year Ended

December 31, 2021

September 30,2021

December 31, 2020

December 31, 2021

December 31, 2020

Net income

$

217,796

$

225,449

$

164,084

$

872,981

$

567,797

Add: Amortization of core deposit intangibles

602

705

823

2,749

3,634

Amortization of mortgage servicing assets

415

430

428

1,679

1,920

Tax effect of amortization adjustments (2)

(293

)

(322

)

(355

)

(1,274

)

(1,575

)

Tangible net income

(e)

$

218,520

$

226,262

$

164,980

$

876,135

$

571,776

Adjustments related to DC Solar

Less: Recoveries (3)

-

-

(10,739

)

-

(10,739

)

Tax effect of recoveries (2)

-

-

3,047

-

3,047

Add: Uncertain tax position recorded in income tax expense

-

-

5,127

-

5,127

Adjusted tangible net income

(f)

$

218,520

$

226,262

$

162,415

$

876,135

$

569,211

Average stockholders' equity

$

5,786,237

$

5,680,306

$

5,243,203

$

5,559,212

$

5,082,186

Less: Average goodwill

(465,697

)

(465,697

)

(465,697

)

(465,697

)

(465,697

)

Average other intangible assets (1)

(9,611

)

(10,135

)

(12,182

)

(10,535

)

(13,769

)

Average tangible equity

(g)

$

5,310,929

$

5,204,474

$

4,765,324

$

5,082,980

$

4,602,720

Return on average tangible equity

(e)/(g)

16.32

%

(4

)

17.25

%

(4

)

13.77

%

(4

)

17.24

%

12.42

%

Adjusted return on average tangible equity

(f)/(g)

16.32

%

(4

)

17.25

%

(4

)

13.56

%

(4

)

17.24

%

12.37

%

Adjusted return on average tangible equity represents adjusted tangible netincome divided by average tangible equity. Adjusted tangible net incomeexcludes the after-tax impacts of the amortization of core deposit intangiblesand mortgage servicing assets, recoveries and uncertain tax position related toDC Solar (where applicable). Given that the use of such measures and ratios ismore prevalent in the banking industry, and such measures and ratios are usedby banking regulators and analysts, the Company has included them below fordiscussion.



Three Months Ended Year Ended

December 31, September 30, December 31, December 31, December 31, 2021 2021 2020 2021 2020

Net income $ 217,796 $ 225,449 $ 164,084 $ 872,981 $ 567,797

Add:Amortizationof core 602 705 823 2,749 3,634 depositintangibles

Amortizationof mortgage 415 430 428 1,679 1,920 servicingassets

Tax effect ofamortization (293 ) (322 ) (355 ) (1,274 ) (1,575 )adjustments ^(2)

Tangible net (e) $ 218,520 $ 226,262 $ 164,980 $ 876,135 $ 571,776 income

Adjustmentsrelated to DC Solar

Less:Recoveries ^ - - (10,739 ) - (10,739 )(3)

Tax effect ofrecoveries ^ - - 3,047 - 3,047 (2)

Add:Uncertain taxposition - - 5,127 - 5,127 recorded inincome taxexpense

Adjustedtangible net (f) $ 218,520 $ 226,262 $ 162,415 $ 876,135 $ 569,211 income



Averagestockholders' $ 5,786,237 $ 5,680,306 $ 5,243,203 $ 5,559,212 $ 5,082,186 equity

Less: Average (465,697 ) (465,697 ) (465,697 ) (465,697 ) (465,697 )goodwill

Average otherintangible (9,611 ) (10,135 ) (12,182 ) (10,535 ) (13,769 )assets ^(1)

Averagetangible (g) $ 5,310,929 $ 5,204,474 $ 4,765,324 $ 5,082,980 $ 4,602,720 equity

Return on (e)average / 16.32 % ^ ^) 17.25 % ^ ^) 13.77 % ^ ^) 17.24 % 12.42 %tangible (g) (4 (4 (4equity

Adjustedreturn on (f) ^ ^ ^average / 16.32 % (4 ^) 17.25 % (4 ^) 13.56 % (4 ^) 17.24 % 12.37 %tangible (g)equity



(1)

Includes core deposit intangibles and mortgage servicing assets.

(2)

Applied statutory tax rate of 28.77% for the three and twelve months ended December 31, 2021. Applied statutory tax rate of 28.37% for the three months ended September 30, 2021, and for the three and twelve months ended December 31, 2020.

(3)

Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.

(4)

Annualized.

(1) Includes core deposit intangibles and mortgage servicing assets.

Applied statutory tax rate of 28.77% for the three and twelve months ended(2) December 31, 2021. Applied statutory tax rate of 28.37% for the three months ended September 30, 2021, and for the three and twelve months ended December 31, 2020.

(3) Included in Amortization of tax credit and other investments on the Consolidated Statement of Income.

(4) Annualized.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 14

In April 2020, the Company started accepting applications under the PPP administered by the Small Business Administration ("SBA") under the Coronavirus Aid, Relief, and Economic Security Act and began to originate loans to qualified small businesses. In January 2021, the Company began processing applications under the second round of the SBA's PPP in response to the Consolidated Appropriations Act, 2021 signed by the President on December 27, 2020. The PPP ended on May 31, 2021.

These loans are included in the Company's C&I portfolio, have an interest rate of one percent and are 100% guaranteed by the SBA. Loan processing fees paid to the Company from the SBA are accounted for as loan origination fees, where net deferred fees are recognized on a straight line basis over the estimated life of the loan as a yield adjustment on the loans. If a loan is paid off or forgiven by the SBA prior to its projected estimated life, the remaining unamortized deferred fees will be recognized as interest income in that period. The Company drew down $1.44 billion from the PPPLF during the second quarter of 2020. The remaining balance of $1.43 billion as of September 2020 was repaid in full during the fourth quarter of 2020.

Adjusted loan yield and adjusted net interest margin for the three and twelve months ended December 31, 2021 and 2020, and three months ended September 30, 2021 exclude the impact of PPP loans. Net interest margin for the three and twelve months ended December 31, 2020 has also been adjusted for advances from the PPPLF. Management believes that presenting the adjusted average loan yield and adjusted net interest margin provide comparability to prior periods and these non-GAAP financial measures provide supplemental information regarding the Company's performance.

Three Months Ended

Year Ended

Yield on Average Loans

December 31, 2021

September 30,2021

December 31, 2020

December 31, 2021

December 31, 2020

Interest income on loans

(a)

$

366,936

$

363,503

$

348,578

$

1,424,900

$

1,464,382

Less: Interest income on PPP loans

(9,592

)

(15,212

)

(14,204

)

(55,198

)

(43,271

)

Adjusted interest income on loans

(b)

$

357,344

$

348,291

$

334,374

$

1,369,702

$

1,421,111

Average loans

(c)

$

40,532,569

$

39,960,151

$

37,725,725

$

39,716,697

$

36,799,017

Less: Average PPP loans

(677,224

)

(1,111,404

)

(1,704,608

)

(1,393,302

)

(1,236,246

)

Adjusted average loans

(d)

$

39,855,345

$

38,848,747

$

36,021,117

$

38,323,395

$

35,562,771

Average loan yield

(a)/(c)

3.59

%

(1

)

3.61

%

(1

)

3.68

%

(1

)

3.59

%

3.98

%

Adjusted average loan yield

(b)/(d)

3.56

%

(1

)

3.56

%

(1

)

3.69

%

(1

)

3.57

%

4.00

%

Net Interest Margin

Net interest income before provision for credit losses

(e)

$

405,697

$

395,706

$

346,581

$

1,531,571

$

1,377,193

Less: Interest income on PPP loans

(9,592

)

(15,212

)

(14,204

)

(55,198

)

(43,271

)

Add: Interest expense on advances from the PPPLF

-

-

324

-

2,046

Adjusted net interest income

(f)

$

396,105

$

380,494

$

332,701

$

1,476,373

$

1,335,968

Average interest-earning assets

(g)

$

58,944,082

$

58,239,480

$

49,703,349

$

56,256,388

$

46,239,709

Less: Average PPP loans

(677,224

)

(1,111,404

)

(1,704,608

)

(1,393,302

)

(1,236,246

)

Adjusted average interest-earning assets

(h)

$

58,266,858

$

57,128,076

$

47,998,741

$

54,863,086

$

45,003,463

Net interest margin

(e)/(g)

2.73

%

(1

)

2.70

%

(1

)

2.77

%

(1

)

2.72

%

2.98

%

Adjusted net interest margin

(f)/(h)

2.70

%

(1

)

2.64

%

(1

)

2.76

%

(1

)

2.69

%

2.97

%

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

Table 14

In April 2020, the Company started accepting applications under the PPPadministered by the Small Business Administration ("SBA") under the CoronavirusAid, Relief, and Economic Security Act and began to originate loans toqualified small businesses. In January 2021, the Company began processingapplications under the second round of the SBA's PPP in response to theConsolidated Appropriations Act, 2021 signed by the President on December 27,2020. The PPP ended on May 31, 2021.

These loans are included in the Company's C&I portfolio, have an interest rateof one percent and are 100% guaranteed by the SBA. Loan processing fees paid tothe Company from the SBA are accounted for as loan origination fees, where netdeferred fees are recognized on a straight line basis over the estimated lifeof the loan as a yield adjustment on the loans. If a loan is paid off orforgiven by the SBA prior to its projected estimated life, the remainingunamortized deferred fees will be recognized as interest income in that period.The Company drew down $1.44 billion from the PPPLF during the second quarter of2020. The remaining balance of $1.43 billion as of September 2020 was repaid infull during the fourth quarter of 2020.

Adjusted loan yield and adjusted net interest margin for the three and twelvemonths ended December 31, 2021 and 2020, and three months ended September 30,2021 exclude the impact of PPP loans. Net interest margin for the three andtwelve months ended December 31, 2020 has also been adjusted for advances fromthe PPPLF. Management believes that presenting the adjusted average loan yieldand adjusted net interest margin provide comparability to prior periods andthese non-GAAP financial measures provide supplemental information regardingthe Company's performance.



Three Months Ended Year Ended Yield on Average December 31, September 30, December 31, December 31, December 31,Loans 2021 2021 2020 2021 2020

Interest income (a) $ 366,936 $ 363,503 $ 348,578 $ 1,424,900 $ 1,464,382 on loans

Less: Interestincome on PPP (9,592 ) (15,212 ) (14,204 ) (55,198 ) (43,271 )loans

Adjustedinterest income (b) $ 357,344 $ 348,291 $ 334,374 $ 1,369,702 $ 1,421,111 on loans



Average loans (c) $ 40,532,569 $ 39,960,151 $ 37,725,725 $ 39,716,697 $ 36,799,017

Less: Average (677,224 ) (1,111,404 ) (1,704,608 ) (1,393,302 ) (1,236,246 )PPP loans

Adjusted average (d) $ 39,855,345 $ 38,848,747 $ 36,021,117 $ 38,323,395 $ 35,562,771 loans



Average loan (a) ^ ^ ^yield / 3.59 % (1 ^) 3.61 % (1 ^) 3.68 % (1 ^) 3.59 % 3.98 % (c)

Adjusted average (b) ^ ^ ^loan yield / 3.56 % (1 ^) 3.56 % (1 ^) 3.69 % (1 ^) 3.57 % 4.00 % (d)



Net Interest Margin

Net interestincome before (e) $ 405,697 $ 395,706 $ 346,581 $ 1,531,571 $ 1,377,193 provision forcredit losses

Less: Interestincome on PPP (9,592 ) (15,212 ) (14,204 ) (55,198 ) (43,271 )loans

Add: Interestexpense on - - 324 - 2,046 advances fromthe PPPLF

Adjusted net (f) $ 396,105 $ 380,494 $ 332,701 $ 1,476,373 $ 1,335,968 interest income



Averageinterest-earning (g) $ 58,944,082 $ 58,239,480 $ 49,703,349 $ 56,256,388 $ 46,239,709 assets

Less: Average (677,224 ) (1,111,404 ) (1,704,608 ) (1,393,302 ) (1,236,246 )PPP loans

Adjusted averageinterest-earning (h) $ 58,266,858 $ 57,128,076 $ 47,998,741 $ 54,863,086 $ 45,003,463 assets



Net interest (e) ^ ^ ^margin / 2.73 % (1 ^) 2.70 % (1 ^) 2.77 % (1 ^) 2.72 % 2.98 % (g)

Adjusted net (f) ^ ^ ^interest margin / 2.70 % (1 ^) 2.64 % (1 ^) 2.76 % (1 ^) 2.69 % 2.97 % (h)



(1)

Annualized.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005004/en/

CONTACT: FOR INVESTOR INQUIRIES, CONTACT: Irene Oh Chief Financial Officer T: (626) 768-6360 E: irene.oh@eastwestbank.com Julianna Balicka Director of Investor Relations and Corporate Finance T: (626) 768-6985 E: julianna.balicka@eastwestbank.com