Financial Analysis

Commitments and Contingencies Commitments to Extend Credit In the normal course of business, the Company provides loan commitments and letters of credit to customers on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. The following table presents the Companys credit-related commitments as of December 31, 2025 and 2024: December 31, 2025 2024 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Loan commitments $ 4,927,242 $ 3,887,543 $ 716,718 $ 92,460 $ 9,623,963 $ 9,128,040 Commercial letters of credit and SBLCs 1,265,040 560,517 153,113 977,620 2,956,290 2,917,029 Total $ 6,192,282 $ 4,448,060 $ 869,831 $ 1,070,080 $ 12,580,253 $ 12,045,069 Loan commitments are agreements to lend to customers provided there are no violations of any conditions established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require commitment fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Federal Home Loan Bank Advances and Long-Term Debt The following table presents details of the Companys FHLB advances and long-term debt as of December 31, 2025 and 2024: December 31, 2025 2024 ($ in thousands) Interest Rate Maturity Dates Amount Amount Parent company Junior subordinated debt (1) floating 5.53% 12/15/2035 $ 32,320 $ 32,001 Bank FHLB advances (2) : Floating (3) 3.87% 3.96% 2026 $ 2,000,000 $ 3,000,000 Fixed 3.87% 4.01% 2026 750,000 500,000 Overnight (4) 4.02% 1/2/2026 250,000 Total FHLB advances $ 3,000,000 $ 3,500,000 (1) As of December 31, 2025, the outstanding junior subordinated debt was issued by MCBI Statutory Trust I and had a stated interest rate of 3-month CME Term Secured Overnight Financing Rate (""SOFR"") + 1.81%. The contractual interest rates for junior subordinated debt were 5.53% and 6.17% as of December 31, 2025 and 2024, respectively. (2) The weighted-average interest rate for FHLB advances was 3.94% as of December 31, 2025. (3) Floating interest rates are based on the SOFR plus the established spread. (4) Overnight interest rates are based on the Standard Credit Programs Advance Rate, as published by the FHLB. FHLB Advances The Banks available borrowing capacity from FHLB advances totaled $11.8 billion as of December 31, 2025. The Banks available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB, reduced by any outstanding FHLB advances. As of December 31, 2025, all advances were secured by …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Stock Compensation Plans Pursuant to the Companys 2021 Stock Incentive Plan, as amended, the Company may issue stock, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of East West and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of December 31, 2025, 2024 and 2023. The total number of shares available for grant under the 2021 Stock Incentive Plan was approximately 3 million as of December 31, 2025. The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Companys various employee share-based compensation plans for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Stock compensation costs $ 76,189 $ 45,535 $ 39,867 Related net tax benefits for stock compensation plans $ 3,041 $ 997 $ 8,959 Restricted Stock Units RSUs are granted under the Companys long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle in shares of the Companys common stock. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion o …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurement and Fair Value of Financial Instruments Under applicable accounting standards, the Company measures a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly recorded at fair value on a recurring basis. At times, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments only as required through the application of an accounting method such as lower of cost or fair value or write-down of individual assets. The Company categorizes its assets and liabilities into three levels based on the established fair value hierarchy and conducts a review of fair value hierarchy classifications on a quarterly basis. For more information regarding the fair value hierarchy and how the Company measures fair value, see Note 1 Summary of Significant Accounting Policies Significant Accounting Policies Fair Value to the Consolidated Financial Statements in this Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments within the fair value hierarchy. Available-for-Sale Debt Securities The fair value of AFS debt securities is generally determined by third-party pricing service providers, including brokers who have experience in valuing th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill Total goodwill was $466 million as of both December 31, 2025 and 2024. The Companys goodwill impairment test is performed annually, as of December 31, or more frequently if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. The Company completed its annual goodwill impairment test as of December 31, 2025 by using a qualitative assessment, and concluded goodwill was not impaired. Additional information pertaining to the Companys accounting policy for goodwill is summarized in Note 1 Summary of Significant Accounting Policies Significant Accounting Policies Goodwill to the Consolidated Financial Statements in this Form 10-K. As of December 31, 2025, the Company held an equity method investment totaling $108 million of which $101 million was comprised of equity method goodwill. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The following table presents the components of income before income taxes and income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Income before income taxes: U.S. $ 1,686,561 $ 1,429,104 $ 1,425,756 Foreign 38,899 52,757 34,014 Total income before income taxes 1,725,460 1,481,861 1,459,770 Current income tax expense: Federal 250,521 166,268 172,428 State 149,291 153,891 173,080 Foreign 8,235 10,399 2,240 Total current income tax expense 408,047 330,558 347,748 Deferred income tax (benefit) expense: Federal (20,242) (6,467) (24,319) State 12,897 (5,582) (23,415) Foreign (430) (2,234) (1,405) Total deferred income tax benefit (7,775) (14,283) (49,139) Total income tax expense: Federal 230,279 159,801 148,109 State 162,188 148,309 149,665 Foreign 7,805 8,165 835 Total income tax expense $ 400,272 $ 316,275 $ 298,609 The following table presents the reconciliation of the federal statutory rate to the Companys effective tax rate for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 2024 2023 ($ in thousands) Amount Percent Amount Percent Amount Percent Statutory U.S. federal tax rate $ 362,347 21.0 % $ 311,191 21.0 % $ 306,552 21.0 % U.S. federal Tax credits (1) Tax credits and benefits under the PAM, net of amortization (29,268) (1.7) (26,147) (1.8) (4,299) (0.3) Energy tax credit solar (42,406) (2.5) (52,722) (3.5) (70,364) (4.8) Energy tax credit ener …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Accounting Pronouncement Adopted in 2025 Standard Required Date of Adoption Description Effect on Financial Statements ASU No. 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures December 31, 2025 Early adoption is permitted. ASU 2023-09 amends the disclosure requirements for income tax rate reconciliation and income taxes paid. The guidance requires public business entities to provide on an annual basis: A reconciliation of statutory tax rate to effective tax rate, using both percentages and reporting currency amounts, into specific categories with reconciling items at or above 5% of the statutory federal income rate. The amount of income taxes paid (net of refunds) disaggregated by federal, state and foreign taxes, with further disaggregation by individual jurisdictions that are equal to 5% or more of income taxes paid. Income (or loss) before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state and foreign. The Company adopted ASU 2023-09 on December 31, 2025, retrospectively by providing the revised disclosures for all periods presented. Recent Accounting Pronouncements Yet to be Adopted Standard Required Date of Adoption Description Effect on Financial Statements ASU No. 2025-09, Derivatives and Hedging (Topic 815) : Hedge Accounting Improvements January 1, 2027 Early adoption is permitted. ASU 2025-09 addresses five specific matters: 1. Broadens the set of h …

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Business Segments The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels where customers are served, and the products and services provided. The chief operating decision maker (CODM) is the Chairman and Chief Executive Officer of the Company. The CODM regularly reviews the Companys operating results to allocate resources and assess performance. Operating segment results are also based on the Companys internal management reporting process, which reflects the allocations of certain balance sheet and income statement line items. The CODM uses certain performance measures such as segment net income and considers variances of actual results from forecast results on a quarterly basis when making decisions on resource allocations between segments. The segment information presented is not indicative of how the segments would perform if they operated as independent entities. The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Companys domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Companys branch network. Other pr …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On January 22, 2026, the Companys Board of Directors declared first quarter 2026 cash dividends for the Companys common stock. The common stock cash dividend of $0.80 per share was paid on February 17, 2026 to stockholders of record as of February 2, 2026. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing