EWBC 10-Q Quarterly Report June 30, 2025

EAST WEST BANCORP INC

10-Ks and 10-Qs

10-Q	Quarter ended Sept. 30, 2025
10-Q	Quarter ended June 30, 2025
10-Q	Quarter ended March 31, 2025
10-K	Fiscal year ended Dec. 31, 2024
10-Q	Quarter ended Sept. 30, 2024
10-Q	Quarter ended June 30, 2024
10-Q	Quarter ended March 31, 2024
10-K	Fiscal year ended Dec. 31, 2023
10-Q	Quarter ended Sept. 30, 2023
10-Q	Quarter ended June 30, 2023
10-Q	Quarter ended March 31, 2023
10-K	Fiscal year ended Dec. 31, 2022
10-Q	Quarter ended Sept. 30, 2022
10-Q	Quarter ended June 30, 2022
10-Q	Quarter ended March 31, 2022
10-K	Fiscal year ended Dec. 31, 2021
10-Q	Quarter ended Sept. 30, 2021
10-Q	Quarter ended June 30, 2021
10-Q	Quarter ended March 31, 2021
10-K	Fiscal year ended Dec. 31, 2020
10-Q	Quarter ended Sept. 30, 2020
10-Q	Quarter ended June 30, 2020
10-Q	Quarter ended March 31, 2020
10-K	Fiscal year ended Dec. 31, 2019
10-Q	Quarter ended Sept. 30, 2019
10-Q	Quarter ended June 30, 2019
10-Q	Quarter ended March 31, 2019
10-K	Fiscal year ended Dec. 31, 2018
10-Q	Quarter ended Sept. 30, 2018
10-Q	Quarter ended June 30, 2018
10-Q	Quarter ended March 31, 2018
10-K	Fiscal year ended Dec. 31, 2017
10-Q	Quarter ended Sept. 30, 2017
10-Q	Quarter ended June 30, 2017
10-Q	Quarter ended March 31, 2017
10-K	Fiscal year ended Dec. 31, 2016
10-Q	Quarter ended Sept. 30, 2016
10-Q	Quarter ended June 30, 2016
10-Q	Quarter ended March 31, 2016
10-K	Fiscal year ended Dec. 31, 2015
10-Q	Quarter ended Sept. 30, 2015
10-Q	Quarter ended June 30, 2015
10-Q	Quarter ended March 31, 2015
10-K	Fiscal year ended Dec. 31, 2014
10-Q	Quarter ended Sept. 30, 2014
10-Q	Quarter ended June 30, 2014
10-Q	Quarter ended March 31, 2014
10-K	Fiscal year ended Dec. 31, 2013
10-Q	Quarter ended Sept. 30, 2013
10-Q	Quarter ended June 30, 2013
10-Q	Quarter ended March 31, 2013
10-K	Fiscal year ended Dec. 31, 2012
10-Q	Quarter ended Sept. 30, 2012
10-Q	Quarter ended June 30, 2012
10-Q	Quarter ended March 31, 2012
10-K	Fiscal year ended Dec. 31, 2011
10-Q	Quarter ended Sept. 30, 2011
10-Q	Quarter ended June 30, 2011
10-Q	Quarter ended March 31, 2011
10-K	Fiscal year ended Dec. 31, 2010
10-Q	Quarter ended Sept. 30, 2010
10-Q	Quarter ended June 30, 2010
10-Q	Quarter ended March 31, 2010
10-K	Fiscal year ended Dec. 31, 2009

PROXIES

DEF 14A	Filed on May 20, 2025
DEF 14A	Filed on April 10, 2025
DEF 14A	Filed on May 24, 2024
DEF 14A	Filed on April 11, 2024
DEF 14A	Filed on April 10, 2023
DEF 14A	Filed on May 26, 2022
DEF 14A	Filed on April 13, 2022
DEF 14A	Filed on April 15, 2021
DEF 14A	Filed on April 10, 2020
DEF 14A	Filed on April 18, 2019
DEF 14A	Filed on April 17, 2018
DEF 14A	Filed on April 19, 2017
DEF 14A	Filed on April 21, 2016
DEF 14A	Filed on March 24, 2015
DEF 14A	Filed on March 27, 2014
DEF 14A	Filed on April 18, 2013
DEF 14A	Filed on April 20, 2012
DEF 14A	Filed on April 14, 2011
DEF 14A	Filed on April 26, 2010
DEF 14A	Filed on Feb. 22, 2010

ewbc-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 000-24939

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

95-4703316

(I.R.S. Employer Identification No.)

135 North Los Robles Ave. , 7th Floor , Pasadena , California 91101

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

( 626 ) 768-6000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange
on which registered

Common Stock, par value $0.001 per share

EWBC

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Number of shares outstanding of the issuer’s common stock on the latest practicable date: 137,821,766 shares as of July 31, 2025 .

TABLE OF CONTENTS


			Page
FORWARD-LOOKING S TATEMENTS			3
PART I — FINANCIAL INFORMATION			4

	Item 1.	Consolidated Financial Statements	4
		Consolidated Balance Sheets (Unaudited)	4
		Consolidated Statement of Income (Unaudited)	5
		Consolidated Statement of Comprehensive Income (Unaudited)	6
		Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)	7
		Consolidated Statement of Cash Flows (Unaudited)	8
		Notes to Consolidated Financial Statements (Unaudited)	10
		1 — Basis of Presentation and Current Accounting Developments	10
		2 — Fair Value Measurement and Fair Value of Financial Instruments	10
		3 — Securities Purchased under Resale Agreements	20
		4 — Securities	21
		5 — Derivatives	27
		6 — Loans Receivable and Allowance for Credit Losses	34
		7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments , Net	52
		8 — Goodwill	54
		9 — Federal Home Loan Bank Advances and Long-Term Debt	54
		10 — Commitments and Contingencies	54


		11 — Stock Compensation Plans	56
		12 — Stockholders’ Equity and Earnings Per Share	58
		13 — Accumulated Other Comprehensive Income (Loss)	58
		14 — Business Segments	60


	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	64










	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	106

	Item 4.	Controls and Procedures	106


PART II — OTHER INFORMATION			107

	Item 1.	Legal Proceedings	107
	Item 1A.	Risk Factors	107
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	108


	Item 5.	Other Information	108
	Item 6.	Exhibits	109

GLOSSARY OF ACRONYMS			110

SIGNATURE			111

Forward-Looking Statements

Certain matters discussed in this Quarterly Report on Form 10-Q 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. East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) may make forward-looking statements in other documents that it files with, or furnishes to, the United States (“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 that are based on current assumptions, beliefs, estimates, expectations and projections, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Forward-looking statements may relate to various matters, including the Company’s financial condition, results of operations, plans, objectives, future performance, business or industry, and usually can be identified by the use of forward-looking words such as “anticipates,” “assumes,” “believes,” “can,” “continues,” “could,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “likely,” “may,” “might,” “objective,” “plans,” “potential,” “projects,” “remains,” “should,” “target,” “trend,” “will,” “would,” or similar expressions or variations thereof, and the negative thereof, but these terms are not the exclusive means of identifying such statements. You should not place undue reliance on forward-looking statements, as they are subject to known and unknown risks and uncertainties.

Factors that might cause future results to differ materially from historical performance and any forward-looking statements include, but are not limited to:

• changes in local, regional and global business, economic and political conditions, and natural or geopolitical events;

• the soundness of other financial institutions and the impacts related to or resulting from bank failures and other industry volatility, including potential increased regulatory requirements, Federal Deposit Insurance Corporation insurance premiums and assessments, and deposit withdrawals;

• changes in trade, tariff, tax, monetary and fiscal policies;

• changes in immigration laws and enforcement practices, or travel and visa related policies;

• current or potential disputes between the U.S., the People’s Republic of China, Singapore and other countries;

• changes in the commercial and consumer real estate markets;

• changes in consumer or commercial spending, savings and borrowing habits, and patterns and behaviors;

• the Company’s ability to compete effectively against financial institutions and other entities, including as a result of emerging technologies;

• the success and timing of the Company’s business strategies;

• the Company’s ability to retain key officers and employees;

• changes in interest rates, competition, regulatory requirements and product mix;

• changes in the Company’s costs of operation, compliance and expansion;

• disruption, failure in, or breach of, the Company’s operational or security systems or infrastructure, or those of third-party vendors with which the Company does business, including as a result of cyber-attacks, and the disclosure or misuse of confidential information;

• the adequacy of the Company’s risk management framework;

• future credit quality and performance, including expectations regarding future credit losses and allowance levels;

• adverse changes to the Company’s credit ratings;

• legal proceedings, regulatory investigations and their resolution;

• the Company’s capital requirements and its ability to generate capital internally or raise capital on favorable terms;

• the impact on the Company’s liquidity due to changes in the Company’s ability to receive dividends from its subsidiaries; and

• any strategic acquisitions or divestitures, the introduction of new or expanded products and services or other events that may directly or indirectly result in a negative impact on the financial performance of the Company and its customers.

For a more detailed discussion of some of the factors that might cause such differences, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025 under the heading Item 1A. Risk Factors . You should treat forward-looking statements as speaking only as of the date they are made and based only on information then actually known to the Company. 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.

PART I — FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands, except shares)

(Unaudited)



	June 30, 2025		December 31, 2024

ASSETS
Cash and due from banks	$	712,157	$	360,734
Interest-bearing cash with banks	3,697,784		4,890,008
Cash and cash equivalents	4,409,941		5,250,742
Interest-bearing deposits with banks	104,535		48,198
Securities purchased under resale agreements (“resale agreements”)	425,000		425,000
Debt securities:
Available-for-sale (“AFS”), at fair value (amortized cost of $ 13,035,258 and $ 11,505,775 )	12,488,913		10,846,811
Held-to-maturity (“HTM”), at amortized cost (fair value of $ 2,437,247 and $ 2,387,754 )	2,892,982		2,917,413

Loans held-for-sale	11,873		—
Loans held-for-investment (net of allowance for loan losses of $ 760,416 and $ 702,052 )	54,200,768		53,024,585
Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net	968,389		926,640

Premises and equipment (net of accumulated depreciation of $ 169,956 and $ 166,154 )	81,264		82,233

Operating lease right-of-use assets	80,523		81,967
Goodwill	465,697		465,697
Other assets	2,028,182		1,907,189
TOTAL	$	78,158,067	$	75,976,475
LIABILITIES
Deposits:
Noninterest-bearing	$	15,470,239	$	15,450,428
Interest-bearing	49,559,254		47,724,595
Total deposits	65,029,493		63,175,023



Federal Home Loan Bank (“FHLB”) advances	3,500,000		3,500,000

Long-term debt and finance lease liabilities	35,789		35,974
Operating lease liabilities	86,987		89,263
Accrued expenses and other liabilities	1,304,031		1,453,161
Total liabilities	69,956,300		68,253,421
COMMITMENTS AND CONTINGENCIES (Note 10)
STOCKHOLDERS’ EQUITY
Common stock, $ 0.001 par value, 200,000,000 shares authorized; 170,445,458 and 169,925,379 shares issued	170		170
Additional paid-in capital	2,060,115		2,030,712
Retained earnings	7,744,221		7,311,542
Treasury stock, at cost 32,629,367 and 31,488,080 shares	( 1,140,359 )		( 1,034,110 )
Accumulated other comprehensive loss (“AOCI”), net of tax	( 462,380 )		( 585,260 )
Total stockholders’ equity	8,201,767		7,723,054
TOTAL	$	78,158,067	$	75,976,475

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

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

(Unaudited)



	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
INTEREST AND DIVIDEND INCOME
Loans receivable, including fees	$	865,695	$	868,441	$	1,706,107	$	1,734,830
Debt securities	153,788		111,732		301,572		187,124

Resale agreements	1,624		1,885		3,234		8,000
Restricted equity securities	2,957		2,950		5,816		4,289
Interest-bearing cash and deposits with banks	34,935		49,406		74,072		123,788
Total interest and dividend income	1,058,999		1,034,414		2,090,801		2,058,031
INTEREST EXPENSE
Deposits	400,588		431,482		792,569		837,681
Federal funds purchased and other short-term borrowings	1		32		7		42,138
FHLB advances	39,313		48,840		78,179		56,579
Securities sold under repurchase agreements (“Repurchase agreements”)	1,352		58		1,429		93
Long-term debt and finance lease liabilities	671		773		1,342		3,172
Total interest expense	441,925		481,185		873,526		939,663
Net interest income before provision for credit losses	617,074		553,229		1,217,275		1,118,368
Provision for credit losses	45,000		37,000		94,000		62,000
Net interest income after provision for credit losses	572,074		516,229		1,123,275		1,056,368
NONINTEREST INCOME


Commercial and consumer deposit-related fees	26,865		25,649		53,940		50,597
Lending and loan servicing fees	25,586		24,340		51,816		47,265
Foreign exchange income	13,715		12,924		29,552		24,393
Wealth management fees	10,725		9,478		24,404		18,115
Customer derivative income	2,201		5,764		6,270		9,514



Net gains on AFS debt securities	746		1,785		877		1,834



Other investment income	678		586		2,940		3,401
Other income	5,662		3,645		8,481		7,539
Total noninterest income	86,178		84,171		178,280		162,658
NONINTEREST EXPENSE
Compensation and employee benefits	144,841		133,588		291,276		275,400
Occupancy and equipment expense	16,289		15,299		31,978		31,015
Deposit account expense	9,348		12,050		18,390		24,238
Computer and software related expenses	13,446		11,392		26,760		22,736
Deposit insurance premiums and regulatory assessments	9,133		10,708		19,518		30,357


Other operating expense	36,727		36,843		78,268		69,301
Amortization of tax credit and CRA investments	26,236		16,052		41,978		29,259

Total noninterest expense	256,020		235,932		508,168		482,306
INCOME BEFORE INCOME TAXES	402,232		364,468		793,387		736,720
Income tax expense	91,979		76,238		192,864		163,415
NET INCOME	$	310,253	$	288,230	$	600,523	$	573,305
EARNINGS PER SHARE (“EPS”)
BASIC	$	2.25	$	2.07	$	4.35	$	4.12
DILUTED	$	2.24	$	2.06	$	4.32	$	4.09
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
BASIC	137,818		138,980		138,009		139,195
DILUTED	138,789		139,801		139,058		140,047

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

($ in thousands)

(Unaudited)



	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	310,253	$	288,230	$	600,523	$	573,305
Other comprehensive income (loss), net of tax:
Net changes in unrealized gains on AFS debt securities	14,388		7,516		71,673		5,199

Amortization of unrealized losses on debt securities transferred from AFS to HTM	1,221		2,708		3,913		5,396
Net changes in unrealized gains (losses) on cash flow hedges	18,129		( 353 )		49,409		( 46,683 )
Foreign currency translation adjustments	( 1,103 )		( 1,311 )		( 2,115 )		2,511
Other comprehensive income (loss)	32,635		8,560		122,880		( 33,577 )
COMPREHENSIVE INCOME	$	342,888	$	296,790	$	723,403	$	539,728

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

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

(Unaudited)



	Common Stock and Additional Paid-in Capital			Retained Earnings		Treasury Stock		AOCI, Net of Tax		Total Stockholders’ Equity
	Shares	Amount
BALANCE, APRIL 1, 2024	139,121,162	$	1,993,976	$	6,662,919	$	( 970,930 )	$	( 662,733 )	$	7,023,232

Net income	—	—		288,230		—		—		288,230
Other comprehensive income	—	—		—		—		8,560		8,560
Issuance of common stock pursuant to various stock compensation plans and agreements	46,938	13,582		—		—		—		13,582
Repurchase of common stock pursuant to various stock compensation plans and agreements	( 3,018 )	—		—		( 214 )		—		( 214 )
Repurchase of common stock pursuant to the stock repurchase program	( 560,645 )	—		—		( 40,780 )		—		( 40,780 )
Cash dividends on common stock ($ 0.55 per share)	—	—		( 77,496 )		—		—		( 77,496 )
BALANCE, JUNE 30, 2024	138,604,437	$	2,007,558	$	6,873,653	$	( 1,011,924 )	$	( 654,173 )	$	7,215,114
BALANCE, APRIL 1, 2025	137,802,089	$	2,044,068	$	7,517,711	$	( 1,137,299 )	$	( 495,015 )	$	7,929,465

Net income	—	—		310,253		—		—		310,253
Other comprehensive income	—	—		—		—		32,635		32,635
Issuance of common stock pursuant to various stock compensation plans and agreements	43,371	16,217		—		—		—		16,217
Repurchase of common stock pursuant to various stock compensation plans and agreements	( 3,382 )	—		—		( 290 )		—		( 290 )
Repurchase of common stock pursuant to the stock repurchase program	( 25,987 )	—		—		( 2,770 )		—		( 2,770 )
Cash dividends on common stock ($ 0.60 per share)	—	—		( 83,743 )		—		—		( 83,743 )
BALANCE, JUNE 30, 2025	137,816,091	$	2,060,285	$	7,744,221	$	( 1,140,359 )	$	( 462,380 )	$	8,201,767



	Common Stock and Additional Paid-in Capital			Retained Earnings		Treasury Stock		AOCI, Net of Tax		Total Stockholders’ Equity
	Shares	Amount
BALANCE, JANUARY 1, 2024	140,027,367	$	1,980,987	$	6,465,230	$	( 874,787 )	$	( 620,596 )	$	6,950,834
Cumulative-effect of change in accounting principle (1)	—	—		( 9,482 )		—		—		( 9,482 )
Net income	—	—		573,305		—		—		573,305
Other comprehensive loss	—	—		—		—		( 33,577 )		( 33,577 )



Issuance of common stock pursuant to various stock compensation plans and agreements	510,177	26,571		—		—		—		26,571
Repurchase of common stock pursuant to various stock compensation plans and agreements	( 190,611 )	—		—		( 13,916 )		—		( 13,916 )
Repurchase of common stock pursuant to the stock repurchase program	( 1,742,496 )	—		—		( 123,221 )		—		( 123,221 )
Cash dividends on common stock ($ 1.10 per share)	—	—		( 155,400 )		—		—		( 155,400 )
BALANCE, JUNE 30, 2024	138,604,437	$	2,007,558	$	6,873,653	$	( 1,011,924 )	$	( 654,173 )	$	7,215,114
BALANCE, JANUARY 1, 2025	138,437,299	$	2,030,882	$	7,311,542	$	( 1,034,110 )	$	( 585,260 )	$	7,723,054

Net income	—	—		600,523		—		—		600,523
Other comprehensive income	—	—		—		—		122,880		122,880



Issuance of common stock pursuant to various stock compensation plans and agreements	520,079	29,403		—		—		—		29,403
Repurchase of common stock pursuant to various stock compensation plans and agreements	( 196,951 )	—		—		( 18,037 )		—		( 18,037 )
Repurchase of common stock pursuant to the stock repurchase program	( 944,336 )	—		—		( 88,212 )		—		( 88,212 )
Cash dividends on common stock ($ 1.20 per share)	—	—		( 167,844 )		—		—		( 167,844 )
BALANCE, JUNE 30, 2025	137,816,091	$	2,060,285	$	7,744,221	$	( 1,140,359 )	$	( 462,380 )	$	8,201,767

(1) Represents the impact of the adoption of ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method on January 1, 2024.

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

($ in thousands)

(Unaudited)



	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	600,523	$	573,305
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	94,000		62,000
Depreciation, amortization and accretion, net	130,778		106,426

Stock compensation costs	26,480		23,654
Deferred income tax benefit	( 24,288 )		( 8,963 )

Net gains on AFS debt securities	( 877 )		( 1,834 )
Other real estate owned (“OREO”) write-downs	4,221		2,576


Loans held-for-sale:
Originations	( 628 )		( 850 )
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale	406		992



Net change in accrued interest receivable and other assets	( 125,159 )		( 6,640 )
Net change in accrued expenses and other liabilities	( 144,368 )		( 222,985 )
Other operating activities, net	( 4,534 )		( 2,270 )
Total adjustments	( 43,969 )		( 47,894 )
Net cash provided by operating activities	556,554		525,411
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in:
Affordable housing partnership, tax credit and CRA investments	( 152,801 )		( 150,217 )
Interest-bearing deposits with banks	( 56,040 )		( 14,226 )



AFS debt securities:
Proceeds from sales	318,294		1,252,859
Proceeds from repayments, maturities and redemptions	1,703,393		807,695
Purchases	( 3,567,424 )		( 4,854,571 )
HTM debt securities:
Proceeds from repayments, maturities and redemptions	32,213		25,577

Loans held-for-investment:
Proceeds from sales of loans originally classified as held-for-investment	126,548		376,456
Purchases	( 530,041 )		( 390,440 )
Other changes in loans held-for-investment, net	( 867,055 )		( 562,088 )


Proceeds from sales of OREO	24,424		7,648

Proceeds from paydowns and maturities of resale agreements	—		300,000

Purchases of FHLB stock	—		( 84,666 )
Other investing activities, net	( 1,194 )		1,679
Net cash used in investing activities	( 2,969,683 )		( 3,284,294 )

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

($ in thousands)

(Unaudited)

(Continued)



	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	1,843,902		3,921,454
Net change in short-term borrowings	—		( 4,500,000 )

FHLB advances:
Proceeds	2,000,000		3,500,000
Repayments	( 2,000,000 )		—






Repayment of lease liabilities and junior subordinated debt	( 419 )		( 117,020 )
Common stock:
Proceeds from issuance pursuant to various stock compensation plans and agreements	1,721		1,580
Stock tendered for payment of withholding taxes	( 18,058 )		( 13,916 )
Repurchase of common stock pursuant to the stock repurchase program	( 89,135 )		( 123,221 )
Cash dividends paid	( 168,643 )		( 155,867 )
Net cash provided by financing activities	1,569,368		2,513,010
Effect of exchange rate changes on cash and cash equivalents	2,960		( 3,420 )
NET DECREASE IN CASH AND CASH EQUIVALENTS	( 840,801 )		( 249,293 )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	5,250,742		4,614,984
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	4,409,941	$	4,365,691

SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	874,296	$	1,082,024
Income taxes, net	$	227,110	$	232,191
Noncash investing and financing activities:


Loans transferred from held-for-investment to held-for-sale	$	138,408	$	339,615




Loans transferred to OREO	$	25,506	$	31,863

See accompanying Notes to Consolidated Financial Statements.

EAST WEST BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Basis of Presentation and Current Accounting Developments

East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Quarterly Report on Form 10-Q (this “Form 10-Q”) include the accounts of East West, East West Bank and East West’s subsidiaries. All i ntercompany balances and transactions have been eliminated in consolidation. As of June 30, 2025, East West has one wholly-owned subsidiary that is a statutory business trust (the “Trust”). In accordance with the guidance in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trust has not been consolidated by the Company.

The unaudited interim Consolidated Financial Statements are presented in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. While the unaudited interim Consolidated Financial Statements reflect all adjustments that, in the opinion of management, are necessary for fair presentation, they primarily serve to update the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. SEC on February 28, 2025 (the “Company’s 2024 Form 10-K”), and may not include all the information and notes necessary to constitute a complete set of financial statements. Accordingly, they should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s 2024 Form 10-K.

The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting periods, and the related disclosures. Although our estimates consider current conditions and how we expect them to change in the future, it is reasonably possible that actual results could be materially different from those estimates. Hence, the current period’s results of operations are not necessarily indicative of results that may be expected for any future interim period or for the year as a whole. Certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current presentation. Events subsequent to the Consolidated Balance Sheet date have been evaluated through the date the Consolidated Financial Statements are issued for inclusion in the accompanying Consolidated Financial Statements.

New Accounting Pronouncements Adopted

The following standards were adopted on January 1, 2025, but they did not have a material impact on the Company’s Consolidated Financial Statements:

• Accounting Standards Update (“ASU”) 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

• ASU 2024-02 , Codification Improvements — Amendments to Remove References to the Concepts Statements

Note 2 — 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. From time to time, 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 the Company’s 2024 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 independent external pricing service providers who have experience in valuing these securities or by taking the average quoted market prices obtained from independent external brokers. The valuations provided by the third-party pricing service providers are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, prepayment expectations and reference data obtained from market research publications. Inputs used by the third-party pricing service providers in valuing collateralized mortgage obligations and other securitization structures also include newly issued data, monthly payment information, whole loan collateral performance, tranche evaluation and “To Be Announced” prices. In valuing securities issued by state and political subdivisions, inputs used by third-party pricing service providers also include material event notices. The valuations provided by the brokers incorporate information from their trading desks, research and other market data.

On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and the financial instruments are properly classified in the fair value hierarchy. To perform this validation, the Company evaluates the fair values of securities by comparing the fair values provided by the third-party pricing service providers to prices from other available independent sources for the same securities. When significant variances in prices are identified, the Company further compares the inputs used by different sources to ascertain the reliability of these sources. On a quarterly basis, the Company reviews the valuation inputs and methodology furnished by third-party pricing service providers for each security category. On an annual basis, the Company assesses the reasonableness of broker pricing by reviewing the related pricing methodologies. This review includes corroborating pricing with market data, performing pricing input reviews under current market-related conditions, and investigating security pricing by instrument as needed.

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

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

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

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

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

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

In connection with the Company’s acquisition of a 49.99 % equity interest in an investee during the third quarter of 2023, the Company granted 349,138 performance-based restricted stock units (“RSUs”) as part of its consideration, in addition to $ 95 million in cash. The vesting of these equity contracts on September 1, 2028, is contingent on the investee meeting certain financial performance targets during the performance period. The fair value of liability-classified equity contracts varies based on the operating revenue and operating EBITDA of the investee to be achieved during the future performance period. These performance-based RSUs are expected to vest into a variable number of the Company’s common stock, ranging from 20 % to 200 % of the target performance-based RSUs granted. Due to the unobservable nature of the input assumptions, these equity contracts are classified as Level 3. For additional information on the equity contracts, refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q.

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

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



	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of June 30, 2025
($ in thousands)	Level 1		Level 2		Level 3		Total Fair Value
AFS debt securities:
U.S. Treasury securities	$	731,062	$	—	$	—	$	731,062
U.S. government agency and U.S. government-sponsored enterprise debt securities	—		270,292		—		270,292
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1) :
Commercial mortgage-backed securities	—		375,165		—		375,165
Residential mortgage-backed securities	—		9,389,745		—		9,389,745
Municipal securities	—		239,197		—		239,197
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	—		224,596		—		224,596
Residential mortgage-backed securities	—		411,734		—		411,734
Corporate debt securities	—		534,644		—		534,644
Foreign government bonds	—		235,343		—		235,343
Asset-backed securities	—		32,643		—		32,643
Collateralized loan obligations (“CLOs”)	—		44,492		—		44,492
Total AFS debt securities	$	731,062	$	11,757,851	$	—	$	12,488,913

Affordable housing partnership, tax credit and CRA investments, net:
Equity securities	$	21,488	$	4,281	$	—	$	25,769
Total affordable housing partnership, tax credit and CRA investments, net	$	21,488	$	4,281	$	—	$	25,769

Other assets:
Equity securities	$	638	$	—	$	—	$	638
Total other assets	$	638	$	—	$	—	$	638

Derivative assets:
Interest rate contracts	$	—	$	332,718	$	—	$	332,718
Foreign exchange contracts	—		68,807		—		68,807
Credit contracts	—		17		—		17
Equity contracts	—		—		377		377
Commodity contracts	—		66,137		—		66,137
Gross derivative assets	$	—	$	467,679	$	377	$	468,056
Netting adjustments (2)	$	—	$	( 313,332 )	$	—	$	( 313,332 )
Net derivative assets	$	—	$	154,347	$	377	$	154,724

Derivative liabilities:
Interest rate contracts	$	—	$	294,142	$	—	$	294,142
Foreign exchange contracts	—		63,162		—		63,162
Credit contracts	—		31		—		31
Equity contracts (3)	—		—		15,119		15,119
Commodity contracts	—		63,992		—		63,992
Gross derivative liabilities	$	—	$	421,327	$	15,119	$	436,446
Netting adjustments (2)	$	—	$	( 141,267 )	$	—	$	( 141,267 )
Net derivative liabilities	$	—	$	280,060	$	15,119	$	295,179

Refer to table footnotes on the following page.



	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total Fair Value
AFS debt securities:
U.S. Treasury securities	$	638,265	$	—	$	—	$	638,265
U.S. government agency and U.S. government-sponsored enterprise debt securities	—		262,587		—		262,587
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1) :
Commercial mortgage-backed securities	—		426,214		—		426,214
Residential mortgage-backed securities	—		7,738,260		—		7,738,260
Municipal securities	—		250,153		—		250,153
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	—		258,470		—		258,470
Residential mortgage-backed securities	—		433,608		—		433,608
Corporate debt securities	—		526,166		—		526,166
Foreign government bonds	—		233,880		—		233,880
Asset-backed securities	—		34,715		—		34,715
CLOs	—		44,493		—		44,493
Total AFS debt securities	$	638,265	$	10,208,546	$	—	$	10,846,811

Affordable housing partnership, tax credit and CRA investments, net:
Equity securities	$	20,817	$	4,204	$	—	$	25,021
Total affordable housing partnership, tax credit and CRA investments, net	$	20,817	$	4,204	$	—	$	25,021
Other assets:
Equity securities	$	568	$	—	$	—	$	568
Total other assets	$	568	$	—	$	—	$	568
Derivative assets:
Interest rate contracts	$	—	$	385,311	$	—	$	385,311
Foreign exchange contracts	—		89,083		—		89,083
Credit contracts	—		1		—		1
Equity contracts	—		—		239		239
Commodity contracts	—		48,499		—		48,499
Gross derivative assets	$	—	$	522,894	$	239	$	523,133
Netting adjustments (2)	$	—	$	( 427,292 )	$	—	$	( 427,292 )
Net derivative assets	$	—	$	95,602	$	239	$	95,841

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

(1) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $ 8.9 billion and $ 7.2 billion of fair value as of June 30, 2025 and December 31, 2024, respectively.

(2) Represents the balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.

(3) Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024

Equity contracts
Beginning balance	$	418	$	330	$	239	$	336

Total losses included in earnings (1)	( 41 )		( 90 )		( 118 )		( 96 )




Issuances (2)	—		—		256		—




Ending balance	$	377	$	240	$	377	$	240

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

(2) Included in Lending and loan servicing fees on the Consolidated Statement of Income.

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



($ in thousands)	Fair Value Measurements (Level 3)		Valuation Technique	Unobservable Inputs	Range of Inputs	Weighted-Average of Inputs
June 30, 2025
Derivative assets:
Equity contracts	$	377	Black-Scholes option pricing model	Equity volatility	36 % — 58 %	44	%	(1)
				Liquidity discount	47 %	47	%
Derivative liabilities:
Equity contracts (2)	$	15,119	Internal model	Payout % based on operating revenue and operating EBITDA of investee	84 %	84	%
December 31, 2024
Derivative assets:
Equity contracts	$	239	Black-Scholes option pricing model	Equity volatility	38 % — 57 %	50	%	(1)
				Liquidity discount	47 %	47	%
Derivative liabilities:
Equity contracts (2)	$	15,119	Internal model	Payout % based on operating revenue and operating EBITDA of investee	84 %	84	%

(1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2025 and December 31, 2024.

(2) Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

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

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

• Discounted cash flow valuation techniques consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate.

• When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations or is unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches.

Loans Held-for-Sale — Loans held-for-investment subsequently transferred to held-for-sale are recorded at the lower of cost or fair value upon transfer. Loans held-for-sale may be measured at fair value on a nonrecurring basis when fair value is less than cost. Fair value is generally determined based on available market data for similar loans and therefore, loans held-for-sale are classified as Level 2.

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

• expected future cash flows that are less than the carrying amoun t of the investment;

• changes in the economic, market or technological environment that could adversely affect the investee’s operations;

• the potential for tax credit recapture; and

• other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment.

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

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

Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon transfer from loans to foreclosed assets. Subsequently, foreclosed assets are recorded at the lower of carrying value or fair value. Fair value is based on independent market prices, appraised values of the collateral or management’s estimated recovery of the foreclosed asset. The Company records an impairment when the foreclosed asset’s fair value declines below its carrying value. The fair value measurement of other nonperforming assets is classified within one of the three levels in a valuation hierarchy based upon the observability of inputs to the valuation as of the measurement date.

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



	Assets Measured at Fair Value on a Nonrecurring Basis as of June 30, 2025
($ in thousands)	Level 1		Level 2		Level 3		Fair Value Measurements
Loans held-for-investment:
Commercial:
Commercial and industrial (“C&I”)	$	—	$	—	$	18,582	$	18,582
Commercial real estate (“CRE”):
CRE	—		—		7,866		7,866











Total loans held-for-investment	$	—	$	—	$	26,448	$	26,448



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

Construction and land	—		—		11,316		11,316

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



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

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

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Loans held-for-investment:
Commercial:
C&I	$	( 11,327 )	$	( 14,764 )	$	( 13,560 )	$	( 24,769 )
CRE:
CRE	( 6,046 )		( 2,260 )		( 19,885 )		( 2,260 )

Construction and land	—		( 920 )		—		( 2,144 )

Total commercial	( 17,373 )		( 17,944 )		( 33,445 )		( 29,173 )
Consumer:
Residential mortgage:
Single-family residential	—		( 23 )		—		( 1,407 )



Total consumer	—		( 23 )		—		( 1,407 )
Total loans held-for-investment	$	( 17,373 )	$	( 17,967 )	$	( 33,445 )	$	( 30,580 )



OREO	$	—	$	( 2,576 )	$	—	$	( 2,576 )

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



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

Loans held-for-investment	$	8,253	Fair value of collateral	Discount	55 % — 75 %	69 %	(1)
	$	3,617	Fair value of collateral	Contract value	NM	NM
	$	14,578	Fair value of property	Selling cost	8 % — 20 %	14 %	(1)





December 31, 2024


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

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

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

NM — Not meaningful.

(1) Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2025 and December 31, 2024.

Disclosures about the Fair Value of Financial Instruments

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



	June 30, 2025
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	4,409,941	$	4,409,941	$	—	$	—	$	4,409,941
Interest-bearing deposits with banks	$	104,535	$	—	$	104,535	$	—	$	104,535
Resale agreements	$	425,000	$	—	$	340,586	$	—	$	340,586
HTM debt securities	$	2,892,982	$	514,767	$	1,922,480	$	—	$	2,437,247
Restricted equity securities, at cost	$	165,989	$	—	$	165,989	$	—	$	165,989
Loans held-for-sale	$	11,873	$	—	$	11,873	$	—	$	11,873
Loans held-for-investment, net	$	54,200,768	$	—	$	—	$	52,607,452	$	52,607,452
Mortgage servicing rights	$	4,628	$	—	$	—	$	7,971	$	7,971
Accrued interest receivable	$	311,264	$	—	$	311,264	$	—	$	311,264
Financial liabilities:
Demand, checking, savings and money market deposits	$	40,718,153	$	—	$	40,718,153	$	—	$	40,718,153
Time deposits	$	24,311,340	$	—	$	24,305,849	$	—	$	24,305,849


FHLB advances	$	3,500,000	$	—	$	3,503,363	$	—	$	3,503,363

Long-term debt	$	32,158	$	—	$	31,293	$	—	$	31,293
Accrued interest payable	$	61,177	$	—	$	61,177	$	—	$	61,177



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

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

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

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

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

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

Note 3 — Securities Purchased under Resale Agreements

The Company’s resale agreements expose it to credit risk from both the counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with the counterparties. The relevant agreements allow for an efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both June 30, 2025 and December 31, 2024. Gross securities purchased under resale agreements were $ 425 million as of both June 30, 2025 and December 31, 2024.

Balance Sheet Offsetting

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

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







	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts of Assets Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
($ in thousands)							Collateral Received (1)		Net Amount
June 30, 2025
Resale agreements	$	425,000	$	—	$	425,000	$	( 349,132 )	$	75,868









December 31, 2024
Resale agreements	$	425,000	$	—	$	425,000	$	( 329,603 )	$	95,397

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

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

Note 4 — Securities

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



	June 30, 2025
($ in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
AFS debt securities:
U.S. Treasury securities	$	756,268	$	—	$	( 25,206 )	$	731,062
U.S. government agency and U.S. government-sponsored enterprise debt securities	305,615		—		( 35,323 )		270,292
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) :
Commercial mortgage-backed securities	410,247		937		( 36,019 )		375,165
Residential mortgage-backed securities	9,576,977		32,581		( 219,813 )		9,389,745
Municipal securities	284,948		—		( 45,751 )		239,197
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	253,719		—		( 29,123 )		224,596
Residential mortgage-backed securities	481,295		—		( 69,561 )		411,734
Corporate debt securities	643,500		—		( 108,856 )		534,644
Foreign government bonds	244,744		1,105		( 10,506 )		235,343
Asset-backed securities	33,445		—		( 802 )		32,643
CLOs	44,500		—		( 8 )		44,492
Total AFS debt securities	13,035,258		34,623		( 580,968 )		12,488,913
HTM debt securities:
U.S. Treasury securities	537,851		—		( 23,084 )		514,767
U.S. government agency and U.S. government-sponsored enterprise debt securities	1,005,738		—		( 167,516 )		838,222
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) :
Commercial mortgage-backed securities	479,501		—		( 76,432 )		403,069
Residential mortgage-backed securities	683,123		—		( 141,511 )		541,612
Municipal securities	186,769		—		( 47,192 )		139,577
Total HTM debt securities	2,892,982		—		( 455,735 )		2,437,247
Total debt securities	$	15,928,240	$	34,623	$	( 1,036,703 )	$	14,926,160

Refer to table footnotes on the following page.



	December 31, 2024
($ in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
AFS debt securities:
U.S. Treasury securities	$	676,300	$	—	$	( 38,035 )	$	638,265
U.S. government agency and U.S. government-sponsored enterprise debt securities	308,220		—		( 45,633 )		262,587
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) :
Commercial mortgage-backed securities	472,535		886		( 47,207 )		426,214
Residential mortgage-backed securities	7,974,768		12,278		( 248,786 )		7,738,260
Municipal securities	287,301		38		( 37,186 )		250,153
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	294,235		2		( 35,767 )		258,470
Residential mortgage-backed securities	514,527		—		( 80,919 )		433,608
Corporate debt securities	653,500		—		( 127,334 )		526,166
Foreign government bonds	244,803		2,069		( 12,992 )		233,880
Asset-backed securities	35,086		—		( 371 )		34,715
CLOs	44,500		—		( 7 )		44,493
Total AFS debt securities	11,505,775		15,273		( 674,237 )		10,846,811
HTM debt securities:
U.S. Treasury securities	535,080		—		( 35,222 )		499,858
U.S. government agency and U.S. government-sponsored enterprise debt securities	1,004,479		—		( 200,259 )		804,220
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) :
Commercial mortgage-backed securities	486,388		—		( 91,461 )		394,927
Residential mortgage-backed securities	703,833		—		( 155,626 )		548,207
Municipal securities	187,633		—		( 47,091 )		140,542
Total HTM debt securities	2,917,413		—		( 529,659 )		2,387,754
Total debt securities	$	14,423,188	$	15,273	$	( 1,203,896 )	$	13,234,565

(1) Amortized cost excludes accrued interest receivables which are presented within Other assets on the Consolidated Balance Sheet. As of June 30, 2025 and December 31, 2024, the accrued interest receivables were $ 49 million and $ 45 million, respectively. For the Company’s accounting policy related to debt securities’ accrued interest receivables, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

(2) Includes GNMA AFS debt securities totaling $ 8.9 billion of both amortized cost and fair value as of June 30, 2025, and $ 7.3 billion of amortized cost and $ 7.2 billion of fair value as of December 31, 2024.

(3) Includes GNMA HTM debt securities totaling $ 82 million of amortized cost and $ 65 million of fair value as of June 30, 2025, and $ 86 million of amortized cost and $ 68 million of fair value of as of December 31, 2024.

Unrealized Losses of Available-for-Sale Debt Securities

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



	June 30, 2025
	Less Than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
AFS debt securities:
U.S. Treasury securities	$	—	$	—	$	616,062	$	( 25,206 )	$	616,062	$	( 25,206 )
U.S. government agency and U.S. government sponsored enterprise debt securities	—		—		270,292		( 35,323 )		270,292		( 35,323 )
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	2,350		( 4 )		346,693		( 36,015 )		349,043		( 36,019 )
Residential mortgage-backed securities	3,871,389		( 16,241 )		1,542,586		( 203,572 )		5,413,975		( 219,813 )
Municipal securities	4,732		( 127 )		233,465		( 45,624 )		238,197		( 45,751 )
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	12,881		( 6 )		211,715		( 29,117 )		224,596		( 29,123 )
Residential mortgage-backed securities	—		—		411,734		( 69,561 )		411,734		( 69,561 )
Corporate debt securities	—		—		527,644		( 108,856 )		527,644		( 108,856 )
Foreign government bonds	—		—		89,494		( 10,506 )		89,494		( 10,506 )
Asset-backed securities	—		—		32,643		( 802 )		32,643		( 802 )
CLOs	—		—		44,492		( 8 )		44,492		( 8 )
Total AFS debt securities	$	3,891,352	$	( 16,378 )	$	4,326,820	$	( 564,590 )	$	8,218,172	$	( 580,968 )



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

As of June 30, 2025, the Company had 545 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 306 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 63 corporate debt securities and 76 non-agency mortgage-backed securities. In comparison, as of December 31, 2024, the Company had 541 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 290 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities, and 83 non-agency mortgage-backed securities.

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

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

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

• Corporate debt securities — The market value decline as of June 30, 2025 was primarily due to interest rate movement and spread widening. A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S. banks. These securities are nearly all rated investment grade by nationally recognized statistical rating organizations (“NRSROs”) and issued by well-capitalized financial institutions with strong profitability. The contractual payments from these corporate debt securities have been and are expected to be received on time. The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities.

• Non-agency mortgage-backed securities — The market value decline as of June 30, 2025 was primarily due to interest rate movement and spread widening. Since a substantial majority of these securities are rated investment grade by NRSROs, or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time, the Company believes the risk of credit losses on these securities is low.

As of both June 30, 2025 and December 31, 2024, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would not have to sell these securities before the recovery of their amortized cost. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, there was no allowance for credit losses provided against these securities as of both June 30, 2025 and December 31, 2024. In addition, there was no provision for credit losses recognized for each of the three and six months ended June 30, 2025 and 2024.

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

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

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

Realized Gains

The following table presents the gross realized gains from the sales of AFS debt securities and the related tax expense included in earnings for the three and six months ended June 30, 2025 and 2024:



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024

Gross realized gains from sales	$	746	$	1,785	$	877	$	1,834

Related tax expense	$	208	$	528	$	247	$	542

Interest Income

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024

Taxable interest	$	151,372	$	106,690	$	294,262	$	177,018
Nontaxable interest	2,416		5,042		7,310		10,106
Total interest income on debt securities	$	153,788	$	111,732	$	301,572	$	187,124

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

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



($ in thousands)	Within One Year			After One Year through Five Years			After Five Years through Ten Years			After Ten Years			Total
AFS debt securities:
U.S. Treasury securities
Amortized cost	$	164,692		$	591,576		$	—		$	—		$	756,268
Fair value	164,423			566,639			—			—			731,062
Weighted-average yield (1)	3.61		%	1.06		%	—		%	—		%	1.62		%
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost	16,596			26,929			201,231			60,859			305,615
Fair value	16,507			26,074			176,330			51,381			270,292
Weighted-average yield (1)	0.93		%	1.36		%	2.00		%	1.98		%	1.89		%
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost	4,782			93,119			103,578			9,785,745			9,987,224
Fair value	4,754			89,666			94,250			9,576,240			9,764,910
Weighted-average yield (1) (2)	3.57		%	2.87		%	2.89		%	5.06		%	5.02		%
Municipal securities
Amortized cost	9,118			23,367			7,108			245,355			284,948
Fair value	8,992			22,510			6,695			201,000			239,197
Weighted-average yield (1) (2)	1.81		%	2.31		%	3.56		%	2.23		%	2.26		%
Non-agency mortgage-backed securities
Amortized cost	11,858			4,196			3,557			715,403			735,014
Fair value	11,702			4,147			3,556			616,925			636,330
Weighted-average yield (1)	0.47		%	3.11		%	5.51		%	2.35		%	2.34		%
Corporate debt securities
Amortized cost	11,000			—			328,500			304,000			643,500
Fair value	10,980			—			299,389			224,275			534,644
Weighted-average yield (1)	5.32		%	—		%	3.38		%	1.97		%	2.75		%
Foreign government bonds
Amortized cost	123,619			21,125			50,000			50,000			244,744
Fair value	124,513			21,336			49,759			39,735			235,343
Weighted-average yield (1)	2.46		%	1.95		%	4.67		%	1.50		%	2.67		%
Asset-backed securities
Amortized cost	—			—			—			33,445			33,445
Fair value	—			—			—			32,643			32,643
Weighted-average yield (1)	—		%	—		%	—		%	5.03		%	5.03		%
CLOs
Amortized cost	—			—			44,500			—			44,500
Fair value	—			—			44,492			—			44,492
Weighted-average yield (1)	—		%	—		%	5.73		%	—		%	5.73		%
Total AFS debt securities
Amortized cost	$	341,665		$	760,312		$	738,474		$	11,194,807		$	13,035,258
Fair value	$	341,871		$	730,372		$	674,471		$	10,742,199		$	12,488,913
Weighted-average yield (1)	2.96		%	1.37		%	3.18		%	4.71		%	4.38		%



($ in thousands)	Within One Year			After One Year through Five Years			After Five Years through Ten Years			After Ten Years			Total
HTM debt securities:
U.S. Treasury securities
Amortized cost	$	—		$	537,851		$	—		$	—		$	537,851
Fair value	—			514,767			—			—			514,767
Weighted-average yield (1)	—		%	1.05		%	—		%	—		%	1.05		%
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost	—			24,365			395,486			585,887			1,005,738
Fair value	—			22,057			346,789			469,376			838,222
Weighted-average yield (1)	—		%	1.42		%	1.90		%	1.91		%	1.90		%
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost	—			18,018			162,951			981,655			1,162,624
Fair value	—			16,671			139,946			788,064			944,681
Weighted-average yield (1) (2)	—		%	1.61		%	1.69		%	1.68		%	1.68		%
Municipal securities
Amortized cost	—			—			—			186,769			186,769
Fair value	—			—			—			139,577			139,577
Weighted-average yield (1) (2)	—		%	—		%	—		%	2.02		%	2.02		%
Total HTM debt securities
Amortized cost	$	—		$	580,234		$	558,437		$	1,754,311		$	2,892,982
Fair value	$	—		$	553,495		$	486,735		$	1,397,017		$	2,437,247
Weighted-average yield (1)	—		%	1.08		%	1.84		%	1.79		%	1.66		%

(1) Weighted-average yields are computed based on amortized cost balances.

(2) Yields on tax-exempt securities are not presented on a tax-equivalent basis.

As of June 30, 2025 and December 31, 2024, AFS and HTM debt securities with carrying valu es of $ 5.3 billion and $ 5.4 billion, respectively, were pledged to secure borrowings, public deposits and for other purposes required or permitted by law.

Restricted Equity Securities

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



($ in thousands)	June 30, 2025		December 31, 2024
Federal Reserve Bank (“FRB”) of San Francisco stock	$	64,660	$	63,930
FHLB stock	101,329		101,329
Total restricted equity securities	$	165,989	$	165,259

Note 5 — Derivatives

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

The following table presents the notional amounts and fair values of the Company’s derivatives as of June 30, 2025 and December 31, 2024. Certain derivative contracts are cleared through central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values of $ 26 million and $ 23 million, respectively, as of June 30, 2025. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $ 17 million and $ 15 million, respectively, as of December 31, 2024. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet.



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


Cash flow hedges:
Interest rate contracts	$	4,250,000	$	41,220		$	3,131		$	5,250,000	$	5,647		$	35,211


Total derivatives designated as hedging instruments	$	4,250,000	$	41,220		$	3,131		$	5,250,000	$	5,647		$	35,211
Derivatives not designated as hedging instruments:
Interest rate contracts	$	18,059,774	$	291,498		$	291,011		$	17,005,381	$	379,664		$	378,961
Commodity contracts (1)	—		66,137			63,992			—		48,499			45,328
Foreign exchange contracts	4,821,785		68,807			63,162			5,201,460		89,083			71,254
Credit contracts (2)	210,170		17			31			168,999		1			12
Equity contracts	—		377		(3)	15,119		(4)	—		239		(3)	15,119		(4)
Total derivatives not designated as hedging instruments	$	23,091,729	$	426,836		$	433,315		$	22,375,840	$	517,486		$	510,674
Gross derivative assets/liabilities			$	468,056		$	436,446				$	523,133		$	545,885
Less: Master netting agreements			( 106,741 )			( 106,741 )					( 111,124 )			( 111,124 )
Less: Cash collateral received			( 206,591 )			( 34,526 )					( 316,168 )			( 1,160 )
Net derivative assets/liabilities			$	154,724		$	295,179				$	95,841		$	433,601

(1) The notional amount of the Company’s commodity contracts totaled 20 million barrels of crude oil and 393 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2025. In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.

(2) The notional amount for the credit contracts reflects the Company’s pro-rata share of the notional amount in the underlying derivative instruments in RPAs.

(3) The Company held warrant equity contracts in nine and eight private companies as of June 30, 2025 and December 31, 2024, respectively.

(4) Equity contracts classified as derivative liabilities consist of 349,138 performance-based RSUs granted as part of EWBC’s consideration in an investment.

Derivatives Designated as Hedging Instruments

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

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Gains (losses) recognized in AOCI:
Interest rate contracts	$	18,728	$	( 25,095 )	$	56,194	$	( 115,471 )


Losses reclassified from AOCI into earnings:

Interest and dividend income (for cash flow hedges on loans)	$	5,531	$	24,594	$	12,583	$	49,199

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



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

Derivatives Not Designated as Hedging Instruments

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

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



	June 30, 2025						December 31, 2024
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	7,198,709	$	44,091	$	242,575	$	6,854,372	$	11,828	$	361,256
Written options	1,588,665		—		3,215		1,458,428		—		4,953
Collars and corridors	242,513		251		204		181,039		80		440
Subtotal	9,029,887		44,342		245,994		8,493,839		11,908		366,649
Foreign exchange contracts:
Forwards and spot	940,567		26,530		8,208		996,486		11,693		24,201
Swaps	1,132,229		31,015		875		1,504,469		16,117		25,366
Written options	165,356		—		171		—		—		—
Subtotal	2,238,152		57,545		9,254		2,500,955		27,810		49,567
Total	$	11,268,039	$	101,887	$	255,248	$	10,994,794	$	39,718	$	416,216
Economic hedges and other:
Interest rate contracts:
Swaps	$	7,198,709	$	243,716	$	44,759	$	6,872,075	$	362,323	$	12,228
Purchased options	1,588,665		3,236		—		1,458,428		4,990		—

Collars and corridors	242,513		204		258		181,039		443		84
Subtotal	9,029,887		247,156		45,017		8,511,542		367,756		12,312
Foreign exchange contracts:
Forwards and spot	171,019		1,759		3,306		86,750		2,318		1,738
Swaps	2,247,258		9,324		50,594		2,613,755		58,955		19,949
Purchased options	165,356		179		8		—		—		—
Subtotal	2,583,633		11,262		53,908		2,700,505		61,273		21,687
Total	$	11,613,520	$	258,418	$	98,925	$	11,212,047	$	429,029	$	33,999

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



	June 30, 2025						December 31, 2024
			Fair Value						Fair Value
($ and unit in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	5,230	Barrels	$	396	$	23,508	4,830	Barrels	$	4,682	$	6,874
Collars	4,766	Barrels	283		13,946		5,477	Barrels	1,604		3,362

Subtotal	9,996	Barrels	679		37,454		10,307	Barrels	6,286		10,236
Natural gas:
Swaps	117,990	MMBTUs	23,227		5,712		141,736	MMBTUs	13,095		17,708
Collars	80,566	MMBTUs	16,877		2,972		62,045	MMBTUs	6,061		4,556
Written options	1,234	MMBTUs	217		—		1,234	MMBTUs	167		—
Subtotal	199,790	MMBTUs	40,321		8,684		205,015	MMBTUs	19,323		22,264
Total			$	41,000	$	46,138			$	25,609	$	32,500
Economic hedges:
Commodity contracts:
Crude oil:
Swaps	5,230	Barrels	$	15,459	$	265	4,830	Barrels	$	4,479	$	3,893
Collars	4,766	Barrels	3,027		—		5,477	Barrels	1,547		76

Subtotal	9,996	Barrels	18,486		265		10,307	Barrels	6,026		3,969
Natural gas:
Swaps	113,333	MMBTUs	4,432		7,419		139,136	MMBTUs	13,323		5,056
Collars	78,816	MMBTUs	2,219		9,968		61,341	MMBTUs	3,541		3,650
Purchased options	1,234	MMBTUs	—		202		1,234	MMBTUs	—		153
Subtotal	193,383	MMBTUs	6,651		17,589		201,711	MMBTUs	16,864		8,859
Total			$	25,137	$	17,854			$	22,890	$	12,828

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndicated loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure in the credit protection sold RPAs would be $ 534 thousand and $ 170 thousand as of June 30, 2025 and December 31, 2024, respectively.

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



	June 30, 2025						December 31, 2024
	Notional Amount		Fair Value				Notional Amount		Fair Value
($ in thousands)			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold (1)	$	133,634	$	—	$	31	$	133,174	$	—	$	12
RPAs — protection purchased	76,536		17		—		35,825		1		—
Total RPAs	$	210,170	$	17	$	31	$	168,999	$	1	$	12

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

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

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



		Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	Classification on Consolidated Statement of Income	2025		2024		2025		2024
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative (losses) income	$	( 1,907 )	$	1,099	$	( 3,309 )	$	1,583
Foreign exchange contracts	Foreign exchange income	13,787		14,349		27,025		27,129
Credit contracts	Customer derivative (losses) income	( 13 )		2		( 3 )		( 3 )
Equity contracts - warrants	Lending and loan servicing fees	( 41 )		( 90 )		138		( 96 )

Commodity contracts	Customer derivative income	476		433		398		567
Net gains		$	12,302	$	15,793	$	24,249	$	29,180

Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. Such an event primarily relates to a downgrade of the credit rating of East West Bank to below investment grad e. As of June 30, 2025, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 9 million , for which $ 7 million collateral was posted to cover these positions. In comparison, a s of December 31, 2024, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 1 million, for which $ 1 million collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, the Company would have been required to post $ 2 million and minimal additional collateral as of June 30, 2025 and December 31, 2024, respectively.

Offsetting of Derivatives

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



($ in thousands)	As of June 30, 2025

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (1)		Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)		Net Amount
Derivative assets	$	468,056	$	( 106,741 )	$	( 206,591 )	$	154,724	$	( 32,161 )	$	122,563

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (2)		Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)		Net Amount
Derivative liabilities	$	436,446	$	( 106,741 )	$	( 34,526 )	$	295,179	$	—	$	295,179



($ in thousands)	As of December 31, 2024

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

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

(1) Includes $ 20 million and $ 4 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2025 and December 31, 2024, respectively.

(2) Includes $ 19 million and $ 27 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2025 and December 31, 2024, respectively.

(3) Gross cash collateral received under master netting arrangements or similar agreements was $ 213 million and $ 322 million as of June 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral received, $ 207 million and $ 316 million were used to offset derivative assets as of June 30, 2025 and December 31, 2024, respectively.

(4) Gross cash collateral pledged under master netting arrangements or similar agreements was $ 38 million and $ 1 million as of June 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral pledged, $ 35 million and $ 1 million were used to offset derivative liabilities as of June 30, 2025 and December 31, 2024, respectively.

(5) Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts.

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

Note 6 — Loans Receivable and Allowance for Credit Losses

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



($ in thousands)	June 30, 2025		December 31, 2024
Commercial:
C&I	$	17,822,881	$	17,397,158
CRE:
CRE	14,978,775		14,655,340
Multifamily residential	4,978,915		4,953,442
Construction and land	709,713		666,162
Total CRE	20,667,403		20,274,944
Total commercial	38,490,284		37,672,102
Consumer:
Residential mortgage:
Single-family residential	14,569,997		14,175,446
Home equity lines of credit (“HELOCs”)	1,850,965		1,811,628
Total residential mortgage	16,420,962		15,987,074
Other consumer	49,938		67,461
Total consumer	16,470,900		16,054,535
Total loans held-for-investment (1)	$	54,961,184	$	53,726,637
Allowance for loan losses	( 760,416 )		( 702,052 )
Loans held-for-investment, net (1)	$	54,200,768	$	53,024,585

(1) Includes $ 74 million and $ 46 million of net deferred loan fees and net unamortized premiums as of June 30, 2025 and December 31, 2024, respectively.

Accrued interest receivable on loans held-for-investment was $ 250 million and $ 255 million as of June 30, 2025 and December 31, 2024, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for each of the three and six months ended June 30, 2025 and 2024. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements of the Company’s 2024 Form 10-K. The Company may occasionally have loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $ 40.2 billion and $ 38.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of June 30, 2025 and December 31, 2024.

Credit Quality Indicators

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

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:

• Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.

• Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”

• Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”

• Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”

• Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

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

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


	June 30, 2025
	Term Loans by Origination Year
($ in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	1,344,664	$	2,304,371	$	1,135,391	$	814,316	$	540,556	$	462,424	$	10,819,790	$	36,328	$	17,457,840
Criticized (accrual)	9		20,283		32,986		41,686		62,727		23,991		111,465		—		293,147
Criticized (nonaccrual)	3,197		236		26,920		7,018		12,526		21,959		38		—		71,894


Total C&I	1,347,870		2,324,890		1,195,297		863,020		615,809		508,374		10,931,293		36,328		17,822,881
Gross write-offs (2)	—		132		40		3,153		—		2,599		—		—		5,924
CRE:
Pass	1,100,578		1,592,742		2,161,155		3,462,580		1,844,573		4,020,815		101,768		48,119		14,332,330
Criticized (accrual)	28,712		37,927		103,691		160,291		75,066		231,665		—		—		637,352
Criticized (nonaccrual)	4,018		—		—		—		836		4,239		—		—		9,093


Subtotal CRE	1,133,308		1,630,669		2,264,846		3,622,871		1,920,475		4,256,719		101,768		48,119		14,978,775
Gross write-offs (2)	8,232		—		—		—		19		13,992		—		—		22,243
Multifamily residential:
Pass	352,254		353,528		495,975		1,244,339		705,084		1,743,054		25,587		1,239		4,921,060
Criticized (accrual)	—		—		—		49,009		—		8,519		—		—		57,528
Criticized (nonaccrual)	—		—		—		—		—		327		—		—		327


Subtotal multifamily residential	352,254		353,528		495,975		1,293,348		705,084		1,751,900		25,587		1,239		4,978,915
Gross write-offs	—		—		—		—		—		7		—		—		7
Construction and land:
Pass	70,411		104,486		318,330		158,498		21,091		3,471		8,022		—		684,309
Criticized (accrual)	—		8,897		—		16,507		—		—		—		—		25,404

Subtotal construction and land	70,411		113,383		318,330		175,005		21,091		3,471		8,022		—		709,713


Total CRE	1,555,973		2,097,580		3,079,151		5,091,224		2,646,650		6,012,090		135,377		49,358		20,667,403

Total CRE gross write-offs (2)	8,232		—		—		—		19		13,999		—		—		22,250
Total commercial	$	2,903,843	$	4,422,470	$	4,274,448	$	5,954,244	$	3,262,459	$	6,520,464	$	11,066,670	$	85,686	$	38,490,284
Total commercial gross write-offs (2)	$	8,232	$	132	$	40	$	3,153	$	19	$	16,598	$	—	$	—	$	28,174


	June 30, 2025
	Term Loans by Origination Year
($ in thousands)	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)	$	1,401,612	$	2,098,791	$	2,563,776	$	2,943,381	$	1,982,084	$	3,523,057	$	—	$	—	$	14,512,701
Criticized (accrual)	1,490		1,466		3,963		8,417		2,215		7,494		—		—		25,045
Criticized (nonaccrual) (3)	843		4,655		10,275		1,160		1,009		14,309		—		—		32,251
Subtotal single-family residential mortgage	1,403,945		2,104,912		2,578,014		2,952,958		1,985,308		3,544,860		—		—		14,569,997
Gross write-offs (2)	—		9		—		—		—		—		—		—		9
HELOCs:
Pass	4,433		6,438		3,496		8,277		7,538		19,853		1,687,628		82,589		1,820,252
Criticized (accrual)	—		2,019		501		97		503		2,001		448		388		5,957
Criticized (nonaccrual)	517		2,273		712		3,183		2,187		10,232		—		5,652		24,756
Subtotal HELOCs	4,950		10,730		4,709		11,557		10,228		32,086		1,688,076		88,629		1,850,965

Total residential mortgage	1,408,895		2,115,642		2,582,723		2,964,515		1,995,536		3,576,946		1,688,076		88,629		16,420,962
Total residential mortgage gross write-offs (2)	—		9		—		—		—		—		—		—		9
Other consumer:
Pass	4,052		79		—		23,527		130		6,793		15,219		—		49,800
Criticized (accrual)	1		—		—		—		—		—		—		—		1
Criticized (nonaccrual)	1		—		49		—		—		—		87		—		137
Total other consumer	4,054		79		49		23,527		130		6,793		15,306		—		49,938

Total consumer	$	1,412,949	$	2,115,721	$	2,582,772	$	2,988,042	$	1,995,666	$	3,583,739	$	1,703,382	$	88,629	$	16,470,900
Total consumer gross write-offs (2)	$	—	$	9	$	—	$	—	$	—	$	—	$	—	$	—	$	9
Total loans held-for-investment:
Pass	$	4,278,004	$	6,460,435	$	6,678,123	$	8,654,918	$	5,101,056	$	9,779,467	$	12,658,014	$	168,275	$	53,778,292
Criticized (accrual)	30,212		70,592		141,141		276,007		140,511		273,670		111,913		388		1,044,434
Criticized (nonaccrual)	8,576		7,164		37,956		11,361		16,558		51,066		125		5,652		138,458
Total	$	4,316,792	$	6,538,191	$	6,857,220	$	8,942,286	$	5,258,125	$	10,104,203	$	12,770,052	$	174,315	$	54,961,184
Total loans held-for-investment gross write-offs (2)	$	8,232	$	141	$	40	$	3,153	$	19	$	16,598	$	—	$	—	$	28,183


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


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


Subtotal CRE	1,695,420		2,341,320		3,782,603		1,956,835		1,373,773		3,344,525		96,791		64,073		14,655,340
Gross write-offs (2)	—		—		—		—		—		3		—		—		3
Multifamily residential:
Pass	386,743		521,754		1,337,599		752,230		613,115		1,242,586		14,640		1,253		4,869,920
Criticized (accrual)	—		—		43,997		32,042		—		2,911		—		—		78,950
Criticized (nonaccrual)	—		—		—		—		—		4,572		—		—		4,572


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

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


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

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

Gross write-offs (2)	—		3,000		—		—		—		—		890		—		3,890
Total consumer	$	2,394,531	$	2,782,386	$	3,108,350	$	2,090,575	$	1,419,106	$	2,480,697	$	1,673,296	$	105,594	$	16,054,535
Total consumer gross write-offs (2)	$	9	$	3,010	$	—	$	—	$	—	$	—	$	890	$	5	$	3,914
Total loans held-for-investment:
Pass	$	7,127,517	$	7,422,477	$	9,316,206	$	5,414,088	$	3,567,683	$	7,175,711	$	12,356,727	$	173,075	$	52,553,484
Criticized (accrual)	74,566		99,381		197,313		176,822		87,799		209,605		154,085		15,365		1,014,936
Criticized (nonaccrual)	9,699		41,949		36,038		12,740		7,803		34,547		9,929		5,512		158,217



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

(1) There were no loans that were converted to term loans during the three months ended June 30, 2025. $ 16 million o f total commercial loans, comprised o f C&I revolving loans, were c onverted to term loans during the six months ended June 30, 2025. In comparison, $ 1 million and $ 8 million of total commercial loans, comprised of C&I and CRE revolving loans, converted to term loans during the three and six months ended June 30, 2024, respectively.

(2) Excludes gross write-offs associated with loans the Company sold or settled.

(3) $ 1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating as of both June 30, 2025 and December 31, 2024.

Nonaccrual and Past Due Loans

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



	June 30, 2025
($ in thousands)	Current Accruing Loans		Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Total Nonaccrual Loans		Total Loans
Commercial:
C&I	$	17,737,893	$	5,711	$	7,383	$	13,094	$	71,894	$	17,822,881
CRE:
CRE	14,938,724		15,500		15,458		30,958		9,093		14,978,775
Multifamily residential	4,977,011		621		956		1,577		327		4,978,915
Construction and land	700,816		—		8,897		8,897		—		709,713
Total CRE	20,616,551		16,121		25,311		41,432		9,420		20,667,403
Total commercial	38,354,444		21,832		32,694		54,526		81,314		38,490,284
Consumer:
Residential mortgage:
Single-family residential	14,459,445		52,101		25,204		77,305		33,247		14,569,997
HELOCs	1,806,711		14,821		4,677		19,498		24,756		1,850,965
Total residential mortgage	16,266,156		66,922		29,881		96,803		58,003		16,420,962
Other consumer	49,679		53		69		122		137		49,938
Total consumer	16,315,835		66,975		29,950		96,925		58,140		16,470,900
Total	$	54,670,279	$	88,807	$	62,644	$	151,451	$	139,454	$	54,961,184



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

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



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

Commercial:
C&I	$	35,707	$	79,591

CRE	7,866		—
Multifamily residential	—		4,210
Construction and land	—		11,316

Total commercial	43,573		95,117
Consumer:

Single-family residential	7,652		6,279
HELOCs	7,248		15,380


Total consumer	14,900		21,659
Total nonaccrual loans with no related allowance for loan losses	$	58,473	$	116,776

Foreclosed Assets

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

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $ 32 million of foreclosed assets as of June 30, 2025, compared with $ 35 million as of December 31, 2024. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $ 24 million and $ 16 million as of June 30, 2025 and December 31, 2024, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

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

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



	Three Months Ended June 30, 2025
	Modification Type
($ in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Rate Reduction/ Term Extension/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	6,058	$	74,767	$	2,974	$	6,966	$	19,574	$	—	$	110,339	0.62	%




CRE	—		152,298		—		—		—		—		152,298		0.74	%
Total commercial	6,058		227,065		2,974		6,966		19,574		—		262,637		0.68	%
Consumer:

Single-family residential	—		—		6,632		207		—		—		6,839		0.05	%
HELOCs	—		—		3,943		—		426		421		4,790		0.26	%




Total consumer	—		—		10,575		207		426		421		11,629		0.07	%
Total	$	6,058	$	227,065	$	13,549	$	7,173	$	20,000	$	421	$	274,266	0.50	%



	Three Months Ended June 30, 2024
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	11,901	$	5,658	$	2,951	$	—	$	20,510	0.12	%

CRE	—		—		—		11,020		11,020		0.05	%



Total commercial	11,901		5,658		2,951		11,020		31,530		0.08	%
Consumer:

Single-family residential	—		4,791		—		—		4,791		0.03	%
HELOCs	—		2,053		—		—		2,053		0.12	%


Other consumer	3,000		—		—		—		3,000		5.34	%

Total consumer	3,000		6,844		—		—		9,844		0.06	%
Total	$	14,901	$	12,502	$	2,951	$	11,020	$	41,374	0.08	%



	Six Months Ended June 30, 2025
	Modification Type
($ in thousands)	Interest Rate Reduction		Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Rate Reduction/ Term Extension/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	6,058	$	76,231	$	2,974	$	29,167	$	19,574	$	—	$	134,004	0.75	%




CRE	—		170,527		—		—		—		—		170,527		0.83	%
Total commercial	6,058		246,758		2,974		29,167		19,574		—		304,531		0.79	%
Consumer:
Residential mortgage:
Single-family residential	—		—		10,699		295		—		—		10,994		0.08	%
HELOCs	—		—		4,918		906		426		421		6,671		0.36	%




Total consumer	—		—		15,617		1,201		426		421		17,665		0.11	%
Total	$	6,058	$	246,758	$	18,591	$	30,368	$	20,000	$	421	$	322,196	0.59	%



	Six Months Ended June 30, 2024
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	15,601	$	25,886	$	2,951	$	—	$	44,438	0.26	%

CRE	24,321		—		—		30,570		54,891		0.27	%



Total commercial	39,922		25,886		2,951		30,570		99,329		0.27	%
Consumer:

Single-family residential	—		8,528		—		—		8,528		0.06	%
HELOCs	—		6,881		—		517		7,398		0.42	%


Other consumer	3,000		—		—		—		3,000		5.34	%

Total consumer	3,000		15,409		—		517		18,926		0.12	%
Total	$	42,922	$	41,295	$	2,951	$	31,087	$	118,255	0.22	%

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



	Financial Effects of Loan Modifications for the Three Months Ended June 30,
	2025				2024
($ in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	3.38	%	0.9	0.7	—	%	2.0	2.0

CRE	—	%	2.8	0.0	2.50	%	0.0	1.2




Consumer:

Single-family residential	—	%	10.0	1.9	—	%	0.0	0.8
HELOCs	0.50	%	10.0	5.1	—	%	0.0	0.7


Other consumer	—	%	0.0	0.0	—	%	0.8	0.0



	Financial Effects of Loan Modifications for the Six Months Ended June 30,
	2025				2024
($ in thousands)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
Commercial:
C&I	3.38	%	1.0	0.8	—	%	2.0	1.5

CRE	—	%	3.0	0.0	2.66	%	1.5	1.0




Consumer:

Single-family residential	—	%	10.0	1.5	—	%	0.0	0.8
HELOCs	0.50	%	15.2	8.0	0.25	%	0.0	2.8


Other consumer	—	%	0.0	0.0	—	%	0.8	0.0

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





	Loans Modified Subsequently Defaulted During the Three Months Ended June 30, 2025
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	2,974	$	—	$	2,974

CRE	30,890		—		—		30,890



Total commercial	30,890		2,974		—		33,864
Consumer:

Single-family residential	—		830		—		830
HELOCs	—		3,509		286		3,795




Total consumer	—		4,339		286		4,625
Total	$	30,890	$	7,313	$	286	$	38,489



	Loans Modified Subsequently Defaulted During the Three Months Ended June 30, 2024
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	5,658	$	—	$	—	$	5,658





Total commercial	—		5,658		—		—		5,658
Consumer:

Single-family residential	—		3,613		—		2,438		6,051
HELOCs	—		941		1,149		—		2,090




Total consumer	—		4,554		1,149		2,438		8,141
Total	$	—	$	10,212	$	1,149	$	2,438	$	13,799



	Loans Modified Subsequently Defaulted During the Six Months Ended June 30, 2025
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	—	$	4,487	$	—	$	—	$	4,487

CRE	53,462		—		—		—		53,462



Total commercial	53,462		4,487		—		—		57,949
Consumer:

Single-family residential	—		3,060		—		207		3,267
HELOCs	—		5,541		—		286		5,827




Total consumer	—		8,601		—		493		9,094
Total	$	53,462	$	13,088	$	—	$	493	$	67,043



	Loans Modified Subsequently Defaulted During the Six Months Ended June 30, 2024
($ in thousands)	Term Extension		Payment Delay		Combination: Rate Reduction/ Payment Delay		Combination: Term Extension/ Payment Delay		Total
Commercial:
C&I	$	7,829	$	5,658	$	—	$	—	$	13,487





Total commercial	7,829		5,658		—		—		13,487
Consumer:

Single-family residential	—		7,575		—		2,823		10,398
HELOCs	—		941		1,149		—		2,090




Total consumer	—		8,516		1,149		2,823		12,488
Total	$	7,829	$	14,174	$	1,149	$	2,823	$	25,975

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



	Payment Performance as of June 30, 2025
($ in thousands)		Current		30 - 89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I		$	165,093	$	—	$	—	$	165,093




CRE		193,099		—		—		193,099
Total commercial		358,192		—		—		358,192
Consumer:

Single-family residential		11,646		3,196		2,337		17,179
HELOCs		6,437		3,008		3,053		12,498


Total consumer		18,083		6,204		5,390		29,677
Total		$	376,275	$	6,204	$	5,390	$	387,869



	Payment Performance as of June 30, 2024
($ in thousands)		Current		30 - 89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I		$	67,004	$	—	$	7,829	$	74,833

CRE		54,892		—		—		54,892



Total commercial		121,896		—		7,829		129,725
Consumer:

Single-family residential		8,261		1,325		8,240		17,826
HELOCs		6,396		3,296		1,210		10,902

Other consumer		3,000		—		—		3,000
Total consumer		17,657		4,621		9,450		31,728
Total		$	139,553	$	4,621	$	17,279	$	161,453

As of June 30, 2025 and December 31, 2024, commitments to lend additional funds to borrowers whose loans were modified totaled $ 20 million and $ 10 million, respectively.

Allowance for Credit Losses

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

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

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

Allowance for Collectively Evaluated Loans

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

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

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

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

Portfolio Segment

Risk Characteristics

Macroeconomic Variables

C&I

Age percentage, size at origination, delinquency status, sector and risk rating

Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates

CRE, Multifamily residential, and Construction and land

Delinquency status, maturity date, collateral value, property type, and geographic location

Unemployment rate, GDP, and U.S. Treasury rates

Single-family residential and HELOCs

FICO score, delinquency status, maturity date, collateral value, and geographic location

Unemployment rate, GDP, and Home Price Indices

Other consumer

Loss rate approach

Immaterial - Macroeconomic variables are included in the qualitative estimate.

Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio

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

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

Quantitative Component — Allowance for Loan Losses for the Consumer Loan Portfolio

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

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

• loan growth trends;

• the volume and severity of past due financial assets, and criticized or adversely classified financial assets;

• the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;

• knowledge of a borrower’s operations;

• the quality of the Company’s credit review system;

• the experience, ability and depth of the Company’s management and associates;

• the effect of other external factors such as the regulatory and legal environments, or changes in technology;

• actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and

• risk factors in certain industry sectors not captured by the quantitative models.

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

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

Allowance for Individually Evaluated Loans

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

• Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of June 30, 2025, collateral-dependent commercial and consumer loans totaled $ 17 million and $ 15 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $ 45 million and $ 23 million, respectively, as of December 31, 2024. The Company's collateral-dependent loans were secured by real estate. As of both June 30, 2025 and December 31, 2024, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.

The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three and six months ended June 30, 2025 and 2024:



		Three Months Ended June 30, 2025
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, beginning of period		$	421,288	$	212,899	$	32,324	$	15,199	$	46,929	$	4,879	$	1,338	$	734,856
Provision for (reversal of) credit losses on loans	(a)	27,595		8,007		( 3,274 )		2,654		5,064		369		( 259 )		40,156
Gross charge-offs		( 8,151 )		( 8,306 )		( 3 )		—		—		—		( 4 )		( 16,464 )
Gross recoveries		1,504		18		26		3		4		8		250		1,813
Total net (charge-offs) recoveries		( 6,647 )		( 8,288 )		23		3		4		8		246		( 14,651 )
Foreign currency translation adjustment		55		—		—		—		—		—		—		55
Allowance for loan losses, end of period		$	442,291	$	212,618	$	29,073	$	17,856	$	51,997	$	5,256	$	1,325	$	760,416



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


Allowance for loan losses, beginning of period		$	373,631	$	187,460	$	37,418	$	10,819	$	55,922	$	3,563	$	1,467	$	670,280
Provision for (reversal of) credit losses on loans	(a)	17,783		18,287		2,628		4,422		( 6,366 )		( 232 )		240		36,762
Gross charge-offs		( 13,134 )		( 11,103 )		—		( 920 )		( 35 )		—		( 130 )		( 25,322 )
Gross recoveries		1,817		150		208		1		2		9		—		2,187
Total net (charge-offs) recoveries		( 11,317 )		( 10,953 )		208		( 919 )		( 33 )		9		( 130 )		( 23,135 )
Foreign currency translation adjustment		( 113 )		—		—		—		—		—		—		( 113 )
Allowance for loan losses, end of period		$	379,984	$	194,794	$	40,254	$	14,322	$	49,523	$	3,340	$	1,577	$	683,794



		Six Months Ended June 30, 2025
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total
Allowance for loan losses, beginning of period		$	384,319	$	218,677	$	32,117	$	17,497	$	44,816	$	3,132	$	1,494	$	702,052
Provision for (reversal of) credit losses on loans	(a)	63,965		16,112		( 3,073 )		2,349		7,136		2,108		( 379 )		88,218
Gross charge-offs		( 9,139 )		( 22,243 )		( 7 )		( 1,996 )		( 9 )		—		( 53 )		( 33,447 )
Gross recoveries		3,068		72		36		6		54		16		263		3,515
Total net (charge-offs) recoveries		( 6,071 )		( 22,171 )		29		( 1,990 )		45		16		210		( 29,932 )
Foreign currency translation adjustment		78		—		—		—		—		—		—		78
Allowance for loan losses, end of period		$	442,291	$	212,618	$	29,073	$	17,856	$	51,997	$	5,256	$	1,325	$	760,416



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


Allowance for loan losses, beginning of period		$	392,685	$	170,592	$	34,375	$	10,469	$	55,018	$	3,947	$	1,657	$	668,743
Provision for (reversal of) credit losses on loans	(a)	18,057		37,419		5,660		5,803		( 5,467 )		( 664 )		108		60,916
Gross charge-offs		( 34,132 )		( 13,501 )		( 6 )		( 2,144 )		( 35 )		—		( 188 )		( 50,006 )
Gross recoveries		3,527		284		225		194		7		57		—		4,294
Total net (charge-offs) recoveries		( 30,605 )		( 13,217 )		219		( 1,950 )		( 28 )		57		( 188 )		( 45,712 )
Foreign currency translation adjustment		( 153 )		—		—		—		—		—		—		( 153 )
Allowance for loan losses, end of period		$	379,984	$	194,794	$	40,254	$	14,322	$	49,523	$	3,340	$	1,577	$	683,794

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



		Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)		2025		2024		2025		2024
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period		$	40,464	$	38,544	$	39,526	$	37,698

Provision for credit losses on unfunded credit commitments	(b)	4,844		238		5,782		1,084
Foreign currency translation adjustment		( 1 )		1		( 1 )		1
Allowance for unfunded credit commitments, end of period		$	45,307	$	38,783	$	45,307	$	38,783

Provision for credit losses	(a) + (b)	$	45,000	$	37,000	$	94,000	$	62,000

The allowance for credit losses was $ 806 million as of June 30, 2025, an increase of $ 64 million, compared with $ 742 million as of December 31, 2024. The increase in the allowance for credit losses was primarily driven by the Company’s net loan and commitment growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and potential impacts from the escalating tariff and global trade tensions.

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

Loan Transfers, Sales and Purchases

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



	Three Months Ended June 30, 2025
	Commercial					Consumer
				CRE		Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	102,214		$	—	$	—	$	—	$	102,214

Sales (2)(3)	$	90,341		$	—	$	—	$	396	$	90,737
Purchases	$	142,687	(4)	$	—	$	—	$	145,330	$	288,017



	Three Months Ended June 30, 2024
	Commercial					Consumer
				CRE		Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	138,923		$	—	$	718	$	—	$	139,641

Sales (2)(3)	$	133,906		$	—	$	718	$	—	$	134,624
Purchases	$	170,175	(4)	$	—	$	—	$	111,864	$	282,039



	Six Months Ended June 30, 2025
	Commercial					Consumer		Total
				CRE		Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land				Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)	$	108,570		$	20,338	$	9,500	$	—		$	138,408

Sales (2)(3)	$	96,697		$	20,338	$	11,316	$	396		$	128,747
Purchases	$	279,630	(4)	$	—	$	—	$	250,411		$	530,041

Refer to table footnotes on the following page.



	Six Months Ended June 30, 2024
	Commercial					Consumer		Total
				CRE		Residential Mortgage
($ in thousands)	C&I			CRE		Construction and Land				Single-Family Residential
Loans transferred from held-for-investment to held-for-sale (1)	$	338,897		$	—	$	718	$	—		$	339,615

Sales (2)(3)	$	321,108		$	—	$	718	$	965		$	322,791
Purchases	$	203,519	(4)	$	—	$	—	$	186,600		$	390,119

(1) Includes write-downs of $ 2 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the six months ended June 30, 2025, and $ 1 million for each of the three and six months ended June 30, 2024. There were no write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three months ended June 30, 2025.

(2) Includes originated loans sold of $ 91 million and $ 125 million for the three and six months ended June 30, 2025, respectively, and $ 95 million and $ 187 million for the three and six months ended June 30, 2024, respectively. Originated loans sold were primarily comprised of C&I loans for each of the three and six months ended June 30, 2025 and 2024.

(3) Includes $ 4 million of purchased loans sold in the secondary market for the six months ended June 30, 2025, and $ 40 million and $ 136 million for each of the three and six months ended June 30, 2024, respectively. There were no purchased loans sold in the secondary market for the three months ended June 30, 2025.

(4) C&I loan purchases were comprised of syndicated C&I term loans.

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

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

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

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

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



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

PAM:
Affordable housing partnership investments	$	492,008		$	238,374	$	500,217		$	280,919
Tax credit and CRA investments	166,097			59,664		160,429			21,202
Equity method of accounting and other:
Tax credits and CRA investments	310,284		(2)	121,966		265,994		(2)	105,743
Total	$	968,389		$	420,004	$	926,640		$	407,864

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

(2) Includes $ 36 million and $ 29 million of equity securities without readily determinable fair values as of June 30, 2025 and December 31, 2024, respectively.

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Tax credits and benefits (1) :
PAM:
Affordable housing partnership investments	$	20,946	$	15,612	$	40,608	$	34,031
Tax credit and CRA investments	40,114		26,304		57,747		53,453
Equity method of accounting and other:
Tax credit and CRA investments	25,096		21,543		37,101		34,137
Total tax credits and benefits	$	86,156	$	63,459	$	135,456	$	121,621

Amortization:
PAM (2) :
Affordable housing partnership investments	$	15,428	$	9,774	$	30,834	$	23,643
Tax credit and CRA investments	32,306		20,015		45,170		43,316
Equity method of accounting and other:
Tax credit and CRA investments (3)	26,236		16,052		41,978		29,259
Total amortization	$	73,970	$	45,841	$	117,982	$	96,218

(1) Included in Income tax expense on the Consolidated Statement of Income.

(2) For affordable housing partnership, tax credit and CRA investments that are qualified for accounting under PAM, amortization is included in Income tax expense on the Consolidated Statement of Income.

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

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

Note 8 — Goodwill

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

As of June 30, 2025, the Company held an equity method investment totaling $ 109 million, of which $ 101 million was comprised of equity method goodwill.

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

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



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



Parent company
Junior subordinated debt — floating (1)	6.13 %	12/15/2035	$	32,158	$	32,001
Bank


FHLB advances (2) :
Floating (3)	4.55 % — 4.64 %	2025 — 2026	$	3,000,000	$	3,000,000
Fixed	3.87 % — 3.95 %	2026	500,000		500,000
Total FHLB advances			$	3,500,000	$	3,500,000

(1) As of June 30, 2025, the outstanding junior subordinated debt was issued by MCBI Statutory Trust I and had a stated interest of 3-month CME Term Secured Overnight Financing Rate (“SOFR”) + 1.81 %. The contractual interest rates for junior subordinated debt were 6.13 % and 6.17 % as of June 30, 2025 and December 31, 2024, respectively.

(2) The weighted-average interest rates for FHLB advances were 4.52 % and 4.48 % as of June 30, 2025 and December 31, 2024, respectively.

(3) Floating interest rates are based on the SOFR plus the established spread.

The Bank’s available borrowing capacity from FHLB advances totaled $ 10.5 billion as of June 30, 2025. The Bank’s available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB, reduced by any outstanding FHLB advances. As of June 30, 2025, all advances were secured by real estate loans.

Note 10 — Commitments and Contingencies

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

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



	June 30, 2025										December 31, 2024
($ in thousands)	Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total		Total
Loan commitments	$	4,973,406	$	3,600,347	$	737,276	$	66,026	$	9,377,055	$	9,128,040
Commercial letters of credit and standby letters of credit (“SBLCs”)	1,383,663		471,735		183,050		1,025,145		3,063,593		2,917,029
Total	$	6,357,069	$	4,072,082	$	920,326	$	1,091,171	$	12,440,648	$	12,045,069

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

Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset existing accounts. As of June 30, 2025, total letters of credit of $ 3.1 billion consisted of SBLCs of $ 3.0 billion and commercial letters of credit of $ 31 million. In comparison, as of December 31, 2024, total letters of credit of $ 2.9 billion consisted of SBLCs of $ 2.9 billion and commercial letters of credit of $ 29 million. As of both June 30, 2025 and December 31, 2024, substantially all letters of credit were graded “Pass” using the Bank’s internal credit risk rating system.

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

Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments and amounted to $ 45 million and $ 39 million as of June 30, 2025 and December 31, 2024, respectively.

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



	Maximum Potential Future Payments										Carrying Value (1)
	June 30, 2025								December 31, 2024		June 30, 2025		December 31, 2024
($ in thousands)	Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total		Total		Total		Total
Single-family residential loans sold or securitized with recourse	$	18	$	152	$	3,813	$	3,983	$	4,375	$	3,983	$	4,375
Multifamily residential loans sold or securitized with recourse	—		136		14,860		14,996		14,996		16,739		17,770
Total	$	18	$	288	$	18,673	$	18,979	$	19,371	$	20,722	$	22,145

(1) Represents the unpaid principal balance.

The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $ 29 thousand and $ 34 thousand as of June 30, 2025 and December 31, 2024, respectively. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse.

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

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

Note 11 — Stock Compensation Plans

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

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Stock compensation costs	$	13,294	$	10,666	$	26,480	$	23,654
Related net tax benefits for stock compensation plans	$	76	$	9	$	2,731	$	792

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

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





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

Granted		446,801	94.68		88,660	95.34
Vested		( 333,987 )	78.70		( 87,992 )	81.35
Forfeited		( 70,214 )	79.13		—	—
Outstanding, June 30, 2025		1,391,212	$	80.91	282,729	$	83.87

As of June 30, 2025, there was $ 47 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 2.0 years, and $ 24 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 2.1 years.

Note 12 — Stockholders’ Equity and Earnings Per Share

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



	Three Months Ended June 30,				Six Months Ended June 30,
($ and shares in thousands, except per share data)	2025		2024		2025		2024
Basic:
Net income	$	310,253	$	288,230	$	600,523	$	573,305
Weighted-average number of shares outstanding	137,818		138,980		138,009		139,195
Basic EPS	$	2.25	$	2.07	$	4.35	$	4.12
Diluted:
Net income	$	310,253	$	288,230	$	600,523	$	573,305

Weighted-average number of shares outstanding	137,818		138,980		138,009		139,195
Add: Dilutive impact of unvested RSUs	971		821		1,049		852
Diluted weighted-average number of shares outstanding	138,789		139,801		139,058		140,047
Diluted EPS	$	2.24	$	2.06	$	4.32	$	4.09

Approximately 64 thousand and 55 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations for the three and six months ended June 30, 2025, respectively. For both the three and six months ended June 30, 2024, approximately 3 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computations.

Stock Repurchase Program — On January 22, 2025, the Company’s Board of Directors authorized a stock repurchase of $ 300 million of the Company’s common stock. The Company repurchased $ 3 million and $ 88 million of common stock for the three and six months ended June 30, 2025, respectively, and $ 41 million and $ 123 million of common stock for the three and six months ended June 30, 2024, respectively.

Note 13 — Accumulated Other Comprehensive Income (Loss)

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



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, April 1, 2024	$	( 601,510 )	$	( 43,706 )	$	( 17,517 )	$	( 662,733 )
Net unrealized gains (losses) arising during the period	8,773		( 17,678 )		( 1,311 )		( 10,216 )
Amounts reclassified from AOCI	1,451		17,325		—		18,776
Changes, net of tax	10,224		( 353 )		( 1,311 )		8,560
Balance, June 30, 2024	$	( 591,286 )	$	( 44,059 )	$	( 18,828 )	$	( 654,173 )

Balance, April 1, 2025	$	( 482,175 )	$	10,493	$	( 23,333 )	$	( 495,015 )
Net unrealized gains (losses) arising during the period	14,926		14,045		( 1,103 )		27,868
Amounts reclassified from AOCI	683		4,084		—		4,767
Changes, net of tax	15,609		18,129		( 1,103 )		32,635
Balance, June 30, 2025	$	( 466,566 )	$	28,622	$	( 24,436 )	$	( 462,380 )

Refer to table footnotes on the following page.



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, January 1, 2024	$	( 601,881 )	$	2,624	$	( 21,339 )	$	( 620,596 )
Net unrealized gains (losses) arising during the period	6,491		( 81,340 )		2,511		( 72,338 )
Amounts reclassified from AOCI	4,104		34,657		—		38,761
Changes, net of tax	10,595		( 46,683 )		2,511		( 33,577 )
Balance, June 30, 2024	$	( 591,286 )	$	( 44,059 )	$	( 18,828 )	$	( 654,173 )

Balance, January 1, 2025	$	( 542,152 )	$	( 20,787 )	$	( 22,321 )	$	( 585,260 )
Net unrealized gains (losses) arising during the period	72,303		40,370		( 2,115 )		110,558
Amounts reclassified from AOCI	3,283		9,039		—		12,322
Changes, net of tax	75,586		49,409		( 2,115 )		122,880
Balance, June 30, 2025	$	( 466,566 )	$	28,622	$	( 24,436 )	$	( 462,380 )

(1) Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.

(2) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

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



	Three Months Ended June 30,
	2025						2024
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains arising during the period	$	31,958	$	( 17,032 )	$	14,926	$	12,421	$	( 3,648 )	$	8,773
Reclassification adjustments:
Net realized gains on AFS debt securities reclassified into net income (1)	( 746 )		208		( 538 )		( 1,785 )		528		( 1,257 )
Amortization of unrealized losses on transferred securities (2)	3,772		( 2,551 )		1,221		3,845		( 1,137 )		2,708
Net change	34,984		( 19,375 )		15,609		14,481		( 4,257 )		10,224
Cash flow hedges:
Net unrealized gains (losses) arising during the period	18,728		( 4,683 )		14,045		( 25,095 )		7,417		( 17,678 )
Net realized losses reclassified into net income (3)	5,531		( 1,447 )		4,084		24,594		( 7,269 )		17,325
Net change	24,259		( 6,130 )		18,129		( 501 )		148		( 353 )
Foreign currency translation adjustments, net of hedges:
Net unrealized losses arising during the period	( 1,330 )		227		( 1,103 )		( 1,311 )		—		( 1,311 )
Net change	( 1,330 )		227		( 1,103 )		( 1,311 )		—		( 1,311 )
Other comprehensive income	$	57,913	$	( 25,278 )	$	32,635	$	12,669	$	( 4,109 )	$	8,560

Refer to table footnotes on the following page.



	Six Months Ended June 30,
	2025						2024
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains arising during the period	$	113,496	$	( 41,193 )	$	72,303	$	9,139	$	( 2,648 )	$	6,491
Reclassification adjustments:
Net realized gains on AFS debt securities reclassified into net income (1)	( 877 )		247		( 630 )		( 1,834 )		542		( 1,292 )
Amortization of unrealized losses on transferred securities (2)	7,594		( 3,681 )		3,913		7,661		( 2,265 )		5,396
Net change	120,213		( 44,627 )		75,586		14,966		( 4,371 )		10,595
Cash flow hedges:
Net unrealized gains (losses) arising during the period	56,194		( 15,824 )		40,370		( 115,471 )		34,131		( 81,340 )
Net realized losses reclassified into net income (3)	12,583		( 3,544 )		9,039		49,199		( 14,542 )		34,657
Net change	68,777		( 19,368 )		49,409		( 66,272 )		19,589		( 46,683 )
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	( 2,342 )		227		( 2,115 )		2,684		( 173 )		2,511
Net change	( 2,342 )		227		( 2,115 )		2,684		( 173 )		2,511
Other comprehensive income (loss)	$	186,648	$	( 63,768 )	$	122,880	$	( 48,622 )	$	15,045	$	( 33,577 )

(1) Pre-tax amounts were reported in Net gains on AFS debt securities on the Consolidated Statement of Income.

(2) Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.

(3) Pre-tax amounts related to cash flow hedges on variable rate loans were reported in Interest and dividend income on the Consolidated Statement of Income.

Note 14 — Business Segments

The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels where customers are served, and the products and services provided. The chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer of the Company. The CODM regularly reviews the Company’s operating results to allocate resources and assess performance. Operating segment results are also based on the Company’s internal management reporting process, which reflects the allocations of certain balance sheet and income statement line items. The CODM uses certain performance measures such as segment net income and considers variances of actual results from forecast results on a quarterly basis when making decisions on resource allocations between segments. The segment information presented is not indicative of how the segments would perform if they operated as independent entities.

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

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

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

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

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

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

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



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






Net interest income before provision for credit losses	$	273,073	$	254,144	$	89,857	$	617,074
Noninterest income	27,729		49,751		8,698		86,178
Total revenue before provision for credit losses	300,802		303,895		98,555		703,252
Provision for (reversal of) credit losses	6,775		38,724		( 499 )		45,000
Compensation and employee benefits	58,151		57,592		29,098		144,841
Other noninterest expense (1)	57,252		36,053		17,874		111,179
Total noninterest expense	115,403		93,645		46,972		256,020
Segment income before income taxes	178,624		171,526		52,082		402,232

Segment net income	$	128,295	$	123,207	$	58,751	$	310,253
Average balances:
Loans	$	20,183,539	$	33,767,859	$	330,034	$	54,281,432
Deposits	$	32,750,578	$	26,318,154	$	4,609,100	$	63,677,832
As of June 30, 2025

Segment assets	$	20,735,714	$	36,134,621	$	21,287,732	$	78,158,067



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






Net interest income (loss) before provision for credit losses	$	292,593	$	278,286	$	( 17,650 )	$	553,229
Noninterest income	26,896		50,818		6,457		84,171
Total revenue (loss) before provision for credit losses	319,489		329,104		( 11,193 )		637,400
(Reversal of) provision for credit losses	( 3,245 )		40,155		90		37,000
Compensation and employee benefits	53,743		56,840		23,005		133,588
Other noninterest expense (1)	54,968		39,997		7,379		102,344
Total noninterest expense	108,711		96,837		30,384		235,932
Segment income (loss) before income taxes	214,023		192,112		( 41,667 )		364,468

Segment net income	$	150,761	$	135,544	$	1,925	$	288,230
Average balances:
Loans	$	18,785,998	$	32,706,625	$	426,165	$	51,918,788
Deposits	$	30,438,157	$	25,519,976	$	2,722,666	$	58,680,799
As of June 30, 2024

Segment assets	$	19,358,010	$	35,642,552	$	17,467,710	$	72,468,272



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






Net interest income before provision for credit losses	$	542,806	$	507,145	$	167,324	$	1,217,275
Noninterest income	60,014		103,330		14,936		178,280
Total revenue before provision for credit losses	602,820		610,475		182,260		1,395,555
Provision for credit losses	14,460		79,503		37		94,000
Compensation and employee benefits	120,115		118,779		52,382		291,276
Other noninterest expense (1)	114,444		78,371		24,077		216,892
Total noninterest expense	234,559		197,150		76,459		508,168
Segment income before income taxes	353,801		333,822		105,764		793,387

Segment net income	$	251,383	$	237,232	$	111,908	$	600,523
Average balances:
Loans	$	19,974,077	$	33,490,986	$	347,116	$	53,812,179
Deposits	$	32,539,912	$	26,225,420	$	4,395,249	$	63,160,581
As of June 30, 2025

Segment assets	$	20,735,714	$	36,134,621	$	21,287,732	$	78,158,067



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






Net interest income (loss) before provision for credit losses	$	589,432	$	566,902	$	( 37,966 )	$	1,118,368
Noninterest income	52,318		96,057		14,283		162,658
Total revenue (loss) before provision for credit losses	641,750		662,959		( 23,683 )		1,281,026
(Reversal of) provision for credit losses	( 681 )		63,062		( 381 )		62,000
Compensation and employee benefits	107,692		118,299		49,409		275,400
Other noninterest expense (1)	118,139		84,351		4,416		206,906
Total noninterest expense	225,831		202,650		53,825		482,306
Segment income (loss) before income taxes	416,600		397,247		( 77,127 )		736,720

Segment net income (loss)	$	293,461	$	280,187	$	( 343 )	$	573,305
Average balances:
Loans	$	18,700,674	$	32,793,986	$	427,154	$	51,921,814
Deposits	$	29,872,472	$	25,341,564	$	2,847,565	$	58,061,601
As of June 30, 2024

Segment assets	$	19,358,010	$	35,642,552	$	17,467,710	$	72,468,272

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

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


		Page
Overview		65
Financial Review		67
Results of Operations		69
	Net Interest Income	69
	Noninterest Income	75
	Noninterest Expense	76
	Income Taxes	77
	Operating Segment Results	77
Balance Sheet Analysis		82
	Debt Securities	82
	Loan Portfolio	84
	Foreign Outstandings	89
	Deposits	90
	Capital	91
	Regulatory Capital and Ratios	92
Risk Management		92
	Credit Risk Management	93
	Liquidity Risk Management	96
	Market Risk Management	99
Critical Accounting Policies and Estimates		104
Reconciliation of GAAP to Non-GAAP Financial Measures		104

Overview

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

Organization and Strategy

East West is a bank holding company incorporated in Delaware on August 26, 1998, and is registered under the Bank Holding Company Act of 1956, as amended. The Company commenced business on December 30, 1998 when, pursuant to a reorganization, it acquired all of the voting stock of the Bank, which became its principal asset. The Bank is an independent commercial bank headquartered in California that focuses on the financial service needs of individuals and businesses that operate in both the U.S. and Asia. Through over 110 locations in the U.S. and Asia, the Company provides a full range of consumer and commercial products and services through the following three business segments: (1) Consumer and Business Banking and (2) Commercial Banking, with the remaining operations recorded in (3) Treasury and Other . The Company’s principal activity is lending to and accepting deposits from businesses and individuals. We are committed to enhancing long-term shareholder value by growing loans, deposits and revenue, improving profitability, and investing for the future while managing risks, expenses and capital. Our business model is built on customer loyalty and engagement, understanding our customers’ financial goals, and meeting our customers’ financial needs through our diverse products and services. We expect our relationship-focused business model to continue generating organic growth from existing customers and to expand our targeted customer bases. As of June 30, 2025, the Company had $78.2 billion in total assets and approximately 3,100 full-time equivalent employees. For additional information on our strategy, and the products and services provided by the Bank, see Item 1. Business — Organization and Banking Services in the Company’s 2024 Form 10-K.

Current Developments

Economic Developments

The higher tariffs introduced throughout 2025 by the current U.S federal administration, coupled with its tax and immigration policies, have prompted concerns about a slowdown in economic growth, increased inflationary pressures, market volatility and a potential recession. The Federal Reserve held rates steady in the second quarter of 2025 and is expected to move cautiously with respect to interest rate cuts as it monitors the pass-through effect of elevated tariffs. Meanwhile, mortgage rates and home prices remain high, creating affordability challenges for many consumers. The economic uncertainty caused by these factors could result in decreased consumer spending and curb business investments, which could affect both the demand and performance of loans. However, the current administration’s focus on deregulation and capital reform could promote growth for banks. Deregulation could lead to increased access to capital for businesses and consumers as fewer restrictions would encourage banks to extend credit. The Company monitors changes in economic and industry conditions and their impacts on the Company’s business, customers, employees, communities and markets.

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

Climate Accountability

In October 2023, California Senate Bill No. 253, the Climate Corporate Data Accountability Act (“SB 253”) and Senate Bill No. 261, the Climate-Related Financial Risk Act (“SB 261”) were signed into law. SB 253 requires companies with annual revenues exceeding $1 billion that conduct business in California to report their Scope 1 and 2 greenhouse gas (“GHG”) emissions annually starting in 2026; and Scope 3 GHG emissions starting in 2027. SB 261 applies to companies with annual revenues over $500 million that operate in California, and requires disclosure of climate-related financial risks and mitigation measures taken to address such risks with the first report due on January 1, 2026, and biennially thereafter.

On December 5, 2024, the California Air Resources Board (“CARB”) issued an Enforcement Notice for SB 253, stating that it will exercise enforcement discretion for the first reporting cycle in 2026 covering Scope 1 and Scope 2 GHG emissions disclosures. CARB stated that companies making a good-faith effort to comply with SB 253 will not face penalties for incomplete Scope 1 and Scope 2 GHG emissions disclosures, and may submit initial disclosures in 2026 based on the data they currently possess, or in the process of collecting at the time the notice was issued. On May 29, 2025, CARB announced that it intends to issue SB 253 implementing regulations by the end of 2025, and reaffirmed that the SB 253 Scope 1 and 2 disclosures for fiscal year 2025 will be required in 2026.

The Company is a reporting entity under both SB 253 and SB 261 and has been monitoring the developments of CARB’s implementing regulations. The Company has engaged a third-party firm to facilitate its implementation of CARB’s regulations. The Company believes it is well-positioned to meet the requirements of the applicable regulations.

Resolution Planning

On June 20, 2024, the Federal Deposit Insurance Corporation (“FDIC”) released a final rule that requires covered insured depository institutions (“IDIs”) to develop and submit detailed plans demonstrating how they could be resolved in an orderly and timely manner in the event of receivership. IDIs with total assets of $100 billion or more are required to submit full resolution plans, and IDIs with total assets between $50 billion and $100 billion, including the Bank, are required to submit more limited informational filings. Under the final rule, if the FDIC deemed a resolution plan or informational filing not credible and the IDI failed to resubmit a credible plan, the IDI could become subject to an enforcement action. The Company has established a management-level working group to address the requirements under the final rule and is on schedule to meet the October 1, 2025 submission deadline. Going forward, the Bank will be required to submit informational filings every three years and interim supplements annually.

Regulatory Updates

On October 22, 2024, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule to implement Section 1033 of the Dodd-Frank Act. Under the final rule, financial institutions are required, upon request, to make available to a consumer or third party authorized by the consumer, certain information the Bank has concerning a consumer financial product or service covered by the rule, such as a credit card or a deposit account. Industry organizations challenged the final rule in court. On May 30, 2025, the CFPB filed a motion for summary judgment in the litigation, in which the CFPB stated that it had concluded that the final rule exceeded the agency’s statutory authority and is arbitrary and capricious. The CFPB requested that the court vacate the final rule. On July 29, 2025, the CFPB filed a motion to stay the proceedings, announcing its plans to issue an advanced notice of proposed rulemaking that will serve as the starting point of an accelerated rulemaking process for a new final rule. The same day, the court granted the CFPB’s motion to stay and denied the CFPB’s summary judgment motion without prejudice.

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

Other Legislative Updates

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

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

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

Financial Review



	Three Months Ended June 30,			Six Months Ended June 30,
($ and shares in thousands, except per share, and ratio data)	2025			2024			2025			2024
Summary of operations:
Net interest income before provision for credit losses	$	617,074		$	553,229		$	1,217,275		$	1,118,368
Noninterest income	86,178			84,171			178,280			162,658
Total revenue	703,252			637,400			1,395,555			1,281,026
Provision for credit losses	45,000			37,000			94,000			62,000


Noninterest expense	256,020			235,932			508,168			482,306
Income before income taxes	402,232			364,468			793,387			736,720
Income tax expense	91,979			76,238			192,864			163,415

Net income	$	310,253		$	288,230		$	600,523		$	573,305

Per share:
Basic earnings	$	2.25		$	2.07		$	4.35		$	4.12
Diluted earnings	$	2.24		$	2.06		$	4.32		$	4.09

Dividends declared	$	0.60		$	0.55		$	1.20		$	1.10



Weighted-average number of shares outstanding:
Basic	137,818			138,980			138,009			139,195
Diluted	138,789			139,801			139,058			140,047


Performance metrics:
Return on average assets	1.62		%	1.63		%	1.59		%	1.61		%
Return on average common equity (“ROAE”)	15.42		%	16.36		%	15.19		%	16.38		%
Return on average tangible common equity (“ROATCE”) (1)	16.39		%	17.54		%	16.16		%	17.57		%


Common dividend payout ratio	26.99		%	26.89		%	27.95		%	27.11		%
Net interest margin	3.35		%	3.27		%	3.35		%	3.30		%
Efficiency ratio (2)	36.41		%	37.01		%	36.41		%	37.65		%


At period end:	June 30, 2025		December 31, 2024
Total assets	$	78,158,067	$	75,976,475
Total loans	$	54,973,057	$	53,726,637
Total deposits	$	65,029,493	$	63,175,023
Common shares outstanding at period-end	137,816		138,437
Book value per share	$	59.51	$	55.79
Tangible book value per share (1)	$	56.10	$	52.39

(1) For additional information regarding the reconciliation of these non-U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, refer to Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

(2) Efficiency ratio is calculated as noninterest expense divided by total revenue.

The Company’s net income for the second quarter and first half of 2025 net income was $310 million and $601 million, respectively, which increased $22 million or 8%, and $27 million or 5%, respectively, from the same prior year periods. The year-over-year increases were primarily due to higher net interest income before provision for credit losses and noninterest income, partially offset by increases in provision for credit losses and income tax expenses, and higher noninterest expenses. Noteworthy aspects of the Company’s performance for the second quarter and first half of 2025 included:

• Net interest income and net interest margin . Second quarter 2025 net interest income before provision for credit losses was $617 million , an increase of $64 million or 12% from the second quarter of 2024. Second quarter 2025 net interest margin of 3.35% increased 8 basis points (“bps”) year-over-year. For the first half of 2025, net interest income before provision for credit losses was $1.2 billion, an increase of $99 million or 9%, year-over-year. The net interest margin for the first half of 2025 was 3.35%, up 5 bps year-over-year.

• Noninterest income. Second quarter 2025 noninterest income increased $2 million or 2% year-over-year to $86 million . First half of 2025 noninterest income increased $16 million or 10% year-over-year to $178 million. These increases were primarily due to higher fee-related income.

• Earnings per share growth. Second quarter 2025 basic earnings per share (“EPS”) increased 9% to $2.25, and diluted EPS increased 8% to $2.24, from the second quarter of 2024. First half of 2025 basic EPS increased 6% to $4.35, and diluted EPS increased 5% to $4.32, from the first half of 2024.

• Efficiency ratio improvement. Second quarter 2025 efficiency ratio of 36.41% improved 60 bps from 37.01% for the same period in 2024. First half of 2025 efficiency ratio of 36.41% improved 124 bps from 37.65% for the same period in 2024. The improvement in the efficiency ratios primarily reflected an increase in total revenue.

• Asset growth. Total assets reached $78.2 billion as of June 30, 2025, an increase of $2.2 billion, from December 31, 2024, primarily driven by a $1.6 billion or 15% increase in available-for-sale (“AFS”) debt securities, a $1.2 billion or 2% increase in net loans held-for-investment, and a $351 million or 97% increase in cash and due from banks. These increases were partially offset by a $1.2 billion or 24% decrease in interest-bearing cash with banks.

• Deposit growth. Total deposits were $65.0 billion as of June 30, 2025, an increase of $1.9 billion or 3% from December 31, 2024. The increase is primarily due to increases in time deposits and money market deposits.

• Strong capital levels. Stockholders’ equity was $8.2 billion as of June 30, 2025, up $479 million or 6%, from December 31, 2024. Book value per share of $59.51 as of June 30, 2025, increased $3.73 or 7%, compared with December 31, 2024. Tangible book value per share of $56.10 as of June 30, 2025, increased $3.71 or 7%, compared with December 31, 2024. Tangible book value per share is a non-GAAP financial measure. For additional details, see the reconciliation of non-GAAP financial measures presented under Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q.

Results of Operations

Net Interest Income

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

Net interest income and net interest margin for the second quarter and first half of 2025 increased year-over-year. These year-over-year increases primarily reflected the increase in AFS debt securities and lower deposit funding costs, partially offset by lower yields on loans and interest-bearing cash and deposits with banks. The increases in the net interest income and net interest margin for the first half of 2025, compared with the same prior year period, were also supported by a decrease in Bank Term Funding Program (“BTFP”) and short-term borrowings, partially offset by an increase in Federal Home Loan Bank (“FHLB”) advances.

Average interest-earning assets were $73.9 billion for the second quarter of 2025, an increase of $5.9 billion or 9% from the second quarter of 2024. For the first half of 2025, average interest-earning assets were $73.3 billion, an increase of $5.2 billion or 8% from the first half of 2024. The year-over-year increases in average interest-earning assets primarily reflected increases in AFS debt securities and loan growth, partially offset by a decrease in interest-bearing cash and deposits with banks.

The yield on average interest-earning assets for the second quarter of 2025 was 5.75%, a decrease of 36 bps from the second quarter of 2024. The yield on average interest-earning assets for the first half of 2025 was 5.75%, a decrease of 33 bps from the first half of 2024. The year-over-year decrease in the yield on average interest-earning assets primarily reflected the impact of lower benchmark interest rates on the loan portfolio.

Average loan yields were 6.40% and 6.39% for the second quarter and first half of 2025, respectively, representing a 33 bps decrease from both prior year periods. The year-over-year decreases in the average loan yields reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 58% of loans held-for-investment were variable rate a s of June 30, 2025 and 2024.

Deposits are an important source of funding for the Company. Average deposits were $63.7 billion for the second quarter of 2025, which increased $5.0 billion or 9%, from the second quarter of 2024. Average deposits were $63.2 billion for the first half of 2025, which increased $5.1 billion or 9%, from the first half of 2024.

Average noninterest-bearing deposits were $15.1 billion for the second quarter of 2025, an increase of $450 million or 3% from the second quarter of 2024. For the first half of 2025, average noninterest-bearing deposits were $15.1 billion, an increase of $300 million or 2% from the first half of 2024. Average noninterest-bearing deposits made up 24% and 25% of average deposits for the second quarters of 2025 and 2024, respectively, and 24% and 26% for the first halves of 2025 and 2024, respectively.

The average cost of deposit s of 2.52% for the second quarter and 2.53% for the first half of 2025, decreased 44 bps and 37 bps , respectively, compared with the prior year periods. The average cost of interest-bearing de posits of 3.31% for the second quarter and 3.33% for the first half of 2025, decreased 63 bps and 56 bps, respectively, compared with the prior year periods. These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs.

The average cost of funds calculation includes deposits, short-term borrowings, FHLB advances, securities sold under repurchase agreements (“repurchase agreements”), and long-term debt. The average cost of funds of 2.63% for the second quarter and 2.64% for the first half of 2025, decreased 48 bps and 40 bps during the second quarter and first half of 2025, respectively, compared with the prior year periods. The year-over-year decreases were mainly driven by the decrease in the cost of deposits as discussed above.

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

The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the second quarters of 2025 and 2024:



	Three Months Ended June 30,
	2025						2024
($ in thousands)	Average Balance		Interest		Average Yield/Rate (1)		Average Balance		Interest		Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$	3,699,036	$	34,935	3.79	%	$	4,058,515	$	49,406	4.90	%
Securities purchased under resale agreements (“resale agreements”)	425,000		1,624		1.53	%	485,000		1,885		1.56	%
Debt securities:
AFS (2)(3)	12,435,531		141,496		4.56	%	8,481,948		99,242		4.71	%
Held-to-maturity (“HTM”) (2)	2,896,410		12,292		1.70	%	2,941,150		12,490		1.71	%
Total debt securities (2)	15,331,941		153,788		4.02	%	11,423,098		111,732		3.93	%
Loans:
Commercial and industrial (“C&I”) (2)	17,363,095		303,791		7.02	%	16,209,659		322,648		8.01	%
Commercial real estate (“CRE”) (2)	20,535,145		319,666		6.24	%	20,270,816		323,106		6.41	%
Residential mortgage	16,336,054		241,666		5.93	%	15,386,858		221,966		5.80	%
Other consumer	47,138		572		4.87	%	51,455		721		5.64	%
Total loans (2)(4)(5)	54,281,432		865,695		6.40	%	51,918,788		868,441		6.73	%







Restricted equity securities	165,716		2,957		7.16	%	164,649		2,950		7.21	%
Total interest-earning assets	$	73,903,125	$	1,058,999	5.75	%	$	68,050,050	$	1,034,414	6.11	%

Noninterest-earning assets:
Cash and due from banks	350,343						468,374
Allowance for loan losses	(745,121)						(675,346)
Other assets	3,353,681						3,346,122
Total assets	$	76,862,028					$	71,189,200

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$	7,597,103	$	47,013	2.48	%	$	7,467,801	$	52,680	2.84	%
Money market deposits	15,325,928		124,282		3.25	%	13,724,230		135,405		3.97	%
Savings deposits	1,745,220		3,700		0.85	%	1,795,242		5,004		1.12	%
Time deposits	23,894,775		225,593		3.79	%	21,028,737		238,393		4.56	%
Total interest-bearing deposits	48,563,026		400,588		3.31	%	44,016,010		431,482		3.94	%
Short-term borrowings and federal funds purchased	659		1		0.61	%	2,889		32		4.45	%
FHLB advances	3,500,003		39,313		4.51	%	3,500,001		48,840		5.61	%
Repurchase agreements	119,061		1,352		4.55	%	4,104		58		5.68	%
Long-term debt and finance lease liabilities	35,811		671		7.52	%	36,335		773		8.56	%
Total interest-bearing liabilities	$	52,218,560	$	441,925	3.39	%	$	47,559,339	$	481,185	4.07	%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	15,114,806						14,664,789
Accrued expenses and other liabilities	1,458,680						1,877,572
Stockholders’ equity	8,069,982						7,087,500
Total liabilities and stockholders’ equity	$	76,862,028					$	71,189,200



Interest rate spread					2.36	%					2.04	%
Net interest income and net interest margin			$	617,074	3.35	%			$	553,229	3.27	%

(1) Annualized.

(2) Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3) Includes the amortization of net premiums on AFS debt securities of $10 million for the second quarters of 2025 and 2024.

(4) Average balances include nonperforming loans and loans held-for-sale.

(5) Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $13 million and $14 million for the second quarters of 2025 and 2024, respectively.



	Six Months Ended June 30,
	2025						2024
($ in thousands)	Average Balance		Interest		Average Yield/Rate (1)		Average Balance		Interest		Average Yield/Rate (1)
ASSETS
Interest-earning assets:
Interest-bearing cash and deposits with banks	$	3,906,499	$	74,072	3.82	%	$	4,960,016	$	123,788	5.02	%
Resale agreements	425,000		3,234		1.53	%	605,330		8,000		2.66	%
Debt securities:
AFS (2)(3)	12,102,837		277,015		4.62	%	7,524,158		162,100		4.33	%
HTM (2)	2,902,373		24,557		1.71	%	2,945,918		25,024		1.71	%
Total debt securities (2)	15,005,210		301,572		4.05	%	10,470,076		187,124		3.59	%
Loans:
C&I (2)	17,115,622		597,205		7.04	%	16,230,641		648,458		8.03	%
CRE (2)	20,454,528		631,052		6.22	%	20,342,200		647,193		6.40	%
Residential mortgage	16,193,678		476,557		5.93	%	15,294,601		437,640		5.75	%



Other consumer	48,351		1,293		5.39	%	54,372		1,539		5.69	%
Total loans (2)(4)(5)	53,812,179		1,706,107		6.39	%	51,921,814		1,734,830		6.72	%
Restricted equity securities	165,540		5,816		7.08	%	128,812		4,289		6.70	%
Total interest-earning assets	$	73,314,428	$	2,090,801	5.75	%	$	68,086,048	$	2,058,031	6.08	%

Noninterest-earning assets:
Cash and due from banks	347,797						457,070
Allowance for loan losses	(730,768)						(677,231)
Other assets	3,315,450						3,567,911
Total assets	$	76,246,907					$	71,433,798

LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing liabilities:
Checking deposits	$	7,672,963	$	94,924	2.49	%	$	7,581,615	$	106,501	2.82	%
Money market deposits	15,081,131		240,300		3.21	%	13,680,220		270,066		3.97	%
Savings deposits	1,749,062		7,147		0.82	%	1,802,405		9,124		1.02	%
Time deposits	23,547,978		450,198		3.86	%	20,187,490		451,990		4.50	%
Total interest-bearing deposits	48,051,134		792,569		3.33	%	43,251,730		837,681		3.89	%
BTFP, short-term borrowings and federal funds purchased	544		7		2.59	%	1,933,707		42,138		4.38	%
FHLB advances	3,500,002		78,179		4.50	%	2,027,474		56,579		5.61	%
Repurchase agreements	63,183		1,429		4.56	%	3,327		93		5.62	%
Long-term debt and finance lease liabilities	35,864		1,342		7.55	%	81,076		3,172		7.87	%
Total interest-bearing liabilities	$	51,650,727	$	873,526	3.41	%	$	47,297,314	$	939,663	4.00	%
Noninterest-bearing liabilities and stockholders’ equity:
Demand deposits	15,109,447						14,809,871
Accrued expenses and other liabilities	1,516,650						2,286,584
Stockholders’ equity	7,970,083						7,040,029
Total liabilities and stockholders’ equity	$	76,246,907					$	71,433,798



Interest rate spread					2.34	%					2.08	%
Net interest income and net interest margin			$	1,217,275	3.35	%			$	1,118,368	3.30	%

(1) Annualized.

(2) Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis.

(3) Includes the amortization of net premiums of AFS debt securities of $17 million for the first halves of 2025 and 2024.

(4) Average balances include nonperforming loans and loans held-for-sale.

(5) Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $26 million and $28 million for the first halves of 2025 and 2024, respectively.

The following table summarizes the extent to which changes in (1) interest rates, and (2) volume of average interest-earning assets and average interest-bearing liabilities affected the Company’s net interest income for the periods presented. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into changes attributable to variations in volume and yield/rate. Changes that are not solely due to either volume or yield/rate are allocated proportionally based on the absolute value of the change related to average volume and average yield/rate.



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

Noninterest Income

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



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

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


Commercial and consumer deposit-related fees	$	26,865	$	25,649	5	%	$	53,940	$	50,597	7	%
Lending and loan servicing fees	25,586		24,340		5	%	51,816		47,265		10	%
Foreign exchange income	13,715		12,924		6	%	29,552		24,393		21	%
Wealth management fees	10,725		9,478		13	%	24,404		18,115		35	%
Customer derivative income:
Derivative income	3,645		4,230		(14)	%	9,184		7,367		25	%
Derivative mark-to-market and credit valuation adjustments	(1,444)		1,534		NM		(2,914)		2,147		NM

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


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

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

NM — Not meaningful.

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

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

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

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

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

Customer derivative income was $2 million for the second quarter of 2025, a decrease of $4 million or 62%, compared with the second quarter of 2024. For the first half of 2025, customer derivative income was $6 million, a decrease of $3 million or 34%, compared with the first half of 2024. The year-over-year decreases primarily reflected unfavorable credit valuation adjustments.

Other income was $6 million for the second quarter of 2025, an increase of $2 million or 55%, compared with the second quarter of 2024. This increase primarily reflected higher returns from bank-owned life insurance. For the first half of 2025, other income was $8 million, an increase of approximately $1 million or 12%, compared with the first half of 2024. This increase primarily reflected an increase in advisory fees from the Company’s broker-dealer subsidiary and greater returns from bank-owned life insurance.

Noninterest Expense

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



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

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


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


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

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

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

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

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

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

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

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

Income Taxes



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

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

Operating Segment Results

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

Consumer and Business Banking

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



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



	Six Months Ended June 30,
					Change from 2024
($ in thousands)	2025		2024		$		%
Net interest income before provision for (reversal of) credit losses	$	542,806	$	589,432	$	(46,626)	(8)	%
Noninterest income	60,014		52,318		7,696		15	%
Total revenue	602,820		641,750		(38,930)		(6)	%
Provision for (reversal of) credit losses	14,460		(681)		15,141		NM
Compensation and employee benefits	120,115		107,692		12,423		12	%
Other noninterest expense	114,444		118,139		(3,695)		(3)	%
Total noninterest expense	234,559		225,831		8,728		4	%
Segment income before income taxes	353,801		416,600		(62,799)		(15)	%
Income tax expense	102,418		123,139		(20,721)		(17)	%
Segment net income	$	251,383	$	293,461	$	(42,078)	(14)	%
Average loans	$	19,974,077	$	18,700,674	$	1,273,403	7	%
Average deposits	$	32,539,912	$	29,872,472	$	2,667,440	9	%

NM — Not meaningful.

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

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

Commercial Banking

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



	Three Months Ended June 30,
					Change from 2024
($ in thousands)	2025		2024		$		%
Net interest income before provision for credit losses	$	254,144	$	278,286	$	(24,142)	(9)	%
Noninterest income	49,751		50,818		(1,067)		(2)	%
Total revenue	303,895		329,104		(25,209)		(8)	%
Provision for credit losses	38,724		40,155		(1,431)		(4)	%
Compensation and employee benefits	57,592		56,840		752		1	%
Other noninterest expense	36,053		39,997		(3,944)		(10)	%
Total noninterest expense	93,645		96,837		(3,192)		(3)	%
Segment income before income taxes	171,526		192,112		(20,586)		(11)	%
Income tax expense	48,319		56,568		(8,249)		(15)	%
Segment net income	$	123,207	$	135,544	$	(12,337)	(9)	%
Average loans	$	33,767,859	$	32,706,625	$	1,061,234	3	%
Average deposits	$	26,318,154	$	25,519,976	$	798,178	3	%



	Six Months Ended June 30,
					Change from 2024
($ in thousands)	2025		2024		$		%
Net interest income before provision for credit losses	$	507,145	$	566,902	$	(59,757)	(11)	%
Noninterest income	103,330		96,057		7,273		8	%
Total revenue before provision for credit losses	610,475		662,959		(52,484)		(8)	%
Provision for credit losses	79,503		63,062		16,441		26	%
Compensation and employee benefits	118,779		118,299		480		0	%
Other noninterest expense	78,371		84,351		(5,980)		(7)	%
Total noninterest expense	197,150		202,650		(5,500)		(3)	%
Segment income before income taxes	333,822		397,247		(63,425)		(16)	%
Income tax expense	96,590		117,060		(20,470)		(17)	%
Segment net income	$	237,232	$	280,187	$	(42,955)	(15)	%
Average loans	$	33,490,986	$	32,793,986	$	697,000	2	%
Average deposits	$	26,225,420	$	25,341,564	$	883,856	3	%

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

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

Treasury and Other

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

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



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



	Six Months Ended June 30,
					Change from 2024
($ in thousands)	2025		2024		$		%
Net interest income (loss) before provision for (reversal of) credit losses	$	167,324	$	(37,966)	$	205,290	NM
Noninterest income	14,936		14,283		653		5	%
Total revenue (loss)	182,260		(23,683)		205,943		NM
Provision for (reversal of) credit losses	37		(381)		418		NM
Compensation and employee benefits	52,382		49,409		2,973		6	%
Other noninterest expense	24,077		4,416		19,661		445	%
Total noninterest expense	76,459		53,825		22,634		42	%
Segment income (loss) before income taxes	105,764		(77,127)		182,891		NM
Income tax benefit	6,144		76,784		(70,640)		(92)	%
Segment net income (loss)	$	111,908	$	(343)	$	112,251	NM
Average loans	$	347,116	$	427,154	$	(80,038)	(19)	%
Average deposits	$	4,395,249	$	2,847,565	$	1,547,684	54	%

NM — Not meaningful.

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

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

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

Balance Sheet Analysis

Debt Securities

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

• interest income for earnings and yield enhancement;

• funding availability for needs arising during the normal course of business;

• the ability to execute interest rate risk management strategies in response to changes in economic or market conditions; and

• collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity.

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

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



	June 30, 2025						December 31, 2024							Ratings as of June 30, 2025 (1)
($ in thousands)	Amortized Cost		Fair Value		% of Fair Value			Amortized Cost		Fair Value		% of Fair Value			AAA/AA		A		BBB		BB and Lower		No Rating (2)
AFS debt securities:
U.S. Treasury securities	$	756,268	$	731,062	6	%		$	676,300	$	638,265	6	%		100	%	—	%	—	%	—	%	—	%
U.S. government agency and U.S. government-sponsored enterprise (“GSE”) debt securities	305,615		270,292		2	%		308,220		262,587		3	%		100	%	—	%	—	%	—	%	—	%
U.S. government agency and U.S. GSE mortgage-backed securities (MBS”) (3)	9,987,224		9,764,910		78	%		8,447,303		8,164,474		75	%		100	%	—	%	—	%	—	%	—	%
Municipal securities	284,948		239,197		2	%		287,301		250,153		2	%		99	%	—	%	—	%	—	%	1	%
Non-agency MBS	735,014		636,330		6	%		808,762		692,078		6	%		96	%	—	%	1	%	1	%	2	%
Corporate debt securities	643,500		534,644		4	%		653,500		526,166		5	%		—	%	32	%	65	%	3	%	—	%
Foreign government bonds	244,744		235,343		2	%		244,803		233,880		2	%		46	%	54	%	—	%	—	%	—	%
Asset-backed securities	33,445		32,643		0	%		35,086		34,715		0	%		30	%	45	%	25	%	—	%	—	%
Collateralized loan obligations	44,500		44,492		0	%		44,500		44,493		1	%		100	%	—	%	—	%	—	%	—	%
Total AFS debt securities	$	13,035,258	$	12,488,913	100	%		$	11,505,775	$	10,846,811	100	%		94	%	3	%	3	%	0	%	0	%

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

(1) Credit ratings represent independent assessments of the credit quality of debt securities. The Company determines the credit rating of a debt security based on the lowest rating assigned by any of the nationally recognized statistical rating organizations (“NRSROs”) that have rated the security. Investment grade debt securities are those with ratings similar to BBB- or above (as defined by NRSROs), and are generally considered by the rating agencies and market participants to be low credit risk. Ratings percentages are allocated based on fair value.

(2) For debt securities not rated by NRSROs, factors such as the priority in collections within the securitization structure, and whether contractual payments have historically been on time are considered in determining the credit risk of such securities.

(3) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $8.9 billion of amortized cost and fair value as of June 30, 2025, and $7.3 billion of amortized cost and $7.2 billion of fair value as of December 31, 2024.

(4) Includes GNMA HTM debt securities totaling $82 million of amortized cost and $65 million of fair value as of June 30, 2025, and $86 million of amortized cost and $68 million of fair value as of December 31, 2024.

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

Available-for-Sale Debt Securities

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

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

Held-to-Maturity Debt Securities

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

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

Loan Portfolio

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

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

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

Commercial

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

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

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



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

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

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



	June 30, 2025						December 31, 2024
($ in thousands)	Amount		%		Weighted Avg. LTV (%) (1)		Amount		%		Weighted Avg. LTV (%) (1)
Property types:
Multifamily	$	4,978,915	24	%	50	%	$	4,953,442	24	%	51	%
Retail	4,459,930		22	%	47	%	4,347,032		21	%	48	%
Industrial	4,101,875		20	%	47	%	3,972,389		20	%	46	%
Hotel	2,382,772		12	%	51	%	2,404,385		12	%	52	%
Office	2,167,449		10	%	52	%	2,125,210		11	%	54	%
Healthcare	819,732		4	%	51	%	788,806		4	%	52	%
Construction and land	709,713		3	%	49	%	666,162		3	%	49	%
Other	1,047,017		5	%	49	%	1,017,518		5	%	50	%
Total CRE loans	$	20,667,403	100	%	49	%	$	20,274,944	100	%	50	%

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

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



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



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

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

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

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

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

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

Consumer

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



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



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

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

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

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

Foreign Outstandings

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



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

AFS debt securities (1)	$	718,823	1	%	$	752,840	1	%
Loans held-for-investment (2)	$	1,053,095	1	%	$	968,973	1	%
Total assets	$	2,737,676	4	%	$	2,474,447	3	%
China subsidiary bank branches:
Cash and cash equivalents	$	621,719	1	%	$	656,971	1	%

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

(1) Comprised of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, U.S. Treasury securities, and foreign government bonds as of June 30, 2025 and December 31, 2024.

(2) Comprised primarily of C&I loans as of both June 30, 2025 and December 31, 2024.

(3) Comprised of foreign government bonds as of both June 30, 2025 and December 31, 2024.

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



	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
($ in thousands)	Amount		% of Total Consolidated Revenue		Amount		% of Total Consolidated Revenue		Amount		% of Total Consolidated Revenue		Amount		% of Total Consolidated Revenue
Hong Kong branch:
Total revenue	$	17,791	3	%	$	15,420	2	%	$	35,604	3	%	$	33,513	3	%
China subsidiary bank branches:
Total revenue	$	6,740	1	%	$	7,320	1	%	$	14,492	1	%	$	14,764	1	%

Deposits

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



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

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




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

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

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



					Change
($ in thousands)	June 30, 2025		December 31, 2024		$		%
Deposits by segment/region:
Consumer and Business Banking - U.S. (1)	$	33,407,064	$	32,832,926	$	574,138	2	%
Commercial Banking - U.S. (1)	23,595,005		23,405,769		189,236		1	%
International Branches (2)	3,579,005		3,412,262		166,743		5	%
Treasury and Other - U.S. (3)	4,448,419		3,524,066		924,353		26	%
Total deposits	$	65,029,493	$	63,175,023	$	1,854,470	3	%

(1) Excludes deposits presented under International Branches.

(2) Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits.

(3) Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department.

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



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

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

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

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

Capital

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

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

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

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

Regulatory Capital and Ratios

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

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



	Basel III Capital Rules
	June 30, 2025				December 31, 2024 (1)
	Company		Bank		Company		Bank		Minimum Regulatory Requirements		Minimum Regulatory Requirements including Capital Conservation Buffer		Well-Capitalized Requirements
Risk-based capital ratios:
Common Equity Tier 1 (“CET1”) capital (2)	14.5	%	13.6	%	14.3	%	13.4	%	4.5	%	7.0	%	6.5	%
Tier 1 capital (3)	14.5	%	13.6	%	14.3	%	13.4	%	6.0	%	8.5	%	8.0	%
Total capital	15.8	%	14.9	%	15.6	%	14.7	%	8.0	%	10.5	%	10.0	%
Tier 1 leverage (2)	10.6	%	10.0	%	10.4	%	9.8	%	4.0	%	4.0	%	5.0	%

(1) The Current Expected Credit Losses (“CECL”) transition provision permits certain banking organizations to exclude from regulatory capital the initial adoption impact of CECL, plus 25% of the cumulative changes in the allowance for credit losses under CECL for each period until December 31, 2021, followed by a three-year phase-out period in which the aggregate benefit is reduced by 25% in 2022, 50% in 2023 and 75% in 2024. Our capital ratios as of December 31, 2024 include a delay of 25% of the estimated impact of CECL on regulatory capital. The CECL transition was no longer in effect as of June 30, 2025.

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

(3) Well-capitalized Tier 1 capital ratio requirements for the Company and the Bank are 6.0% and 8.0%, respectively.

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

Risk Management

Overview

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

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

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

Credit Risk Management

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

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

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

Credit Quality

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

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



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

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

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

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

Nonperforming Assets

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

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



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


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

Loans are generally placed on nonaccrual status at the earlier of when they become 90 days past due or when the full collection of principal or interest becomes uncertain, regardless of the length of past due status. Collectability is generally assessed based on economic and business conditions, the borrower’s financial condition, and the adequacy of collateral, if any. For additional details regarding the Company’s nonaccrual loan policy, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

Nonaccrual loans of $139 million as of June 30, 2025 decreased $20 million or 12% from December 31, 2024, primarily driven by a commercial nonaccrual loan that was transferred to OREO and the charge-offs of one commercial and one construction nonaccrual loan. As of June 30, 2025, $36 million or 26% of nonaccrual loans were less than 90 days delinquent. In comparison, $49 million or 31% of nonaccrual loans were less than 90 days delinquent as of December 31, 2024.

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



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

NM — Not meaningful.

(1) There were no accruing loans past due 90 days or more as of both June 30, 2025 and December 31, 2024.

Allowance for Credit Losses

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

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



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

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

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

Liquidity Risk Management

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

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

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

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

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

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

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

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



					Change
($ in thousands)	June 30, 2025		December 31, 2024		$		%
Cash and cash equivalents	$	4,409,941	$	5,250,742	$	(840,801)	(16)	%
Interest-bearing deposits with banks	104,535		48,198		56,337		117	%
Unused secured borrowing capacity from:
FHLB	10,493,425		9,928,152		565,273		6	%
FRB (1)	13,068,514		12,383,005		685,509		6	%
Unpledged securities	9,516,274		7,819,531		1,696,743		22	%
Total available liquidity	$	37,592,689	$	35,429,628	$	2,163,061	6	%

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

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

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

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

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

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

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

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

Market Risk Management

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

Interest Rate Risk Management

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

• Assets and liabilities may mature or reprice at different times. If assets reprice faster than liabilities and interest rates are generally rising, earnings will initially increase;

• Assets and liabilities may reprice at the same time but by different amounts;

• Short- and long-term market interest rates may change by different amounts. For example, the shape of the yield curve may affect the yield of new loans and funding costs differently;

• The remaining maturity of various assets or liabilities may shorten or lengthen as interest rates change. For example, if long-term mortgage interest rates increase sharply, mortgage-related products may pay down at a slower rate than anticipated, which could impact portfolio income and valuation; or

• Interest rates may have a direct or indirect effect on loan demand, collateral values, mortgage origination volume, and the fair value of other financial instruments.

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

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

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

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

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

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

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

Twelve-Month Net Interest Income Simulation

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

100

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



	Net Interest Income Volatility (1)
Change in Interest Rates (in bps)	June 30, 2025		December 31, 2024
+200	5.3	%	4.7	%
+100	3.6	%	3.5	%
-100	(4.0)	%	(4.0)	%
-200	(7.0)	%	(7.4)	%

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

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

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



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

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

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

Economic Value of Equity at Risk

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

101

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

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



	Economic Value of Equity Volatility (1)
Change in Interest Rates (in bps)	June 30, 2025		December 31, 2024
+200	(13.4)	%	(12.5)	%
+100	(6.2)	%	(5.2)	%
-100	4.9	%	4.6	%
-200	9.5	%	9.5	%

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

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

Derivatives

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

In addition, the Company enters into derivative transactions in order to accommodate its customers with their business needs or to assist customers with their risk management objectives, such as managing exposure to fluctuations in interest rates, foreign currencies and commodity prices. To economically hedge against the derivative contracts entered into with the Company’s customers, the Company enters into offsetting derivative contracts with third-party financial institutions, some of which are cleared through central clearing organizations. The exposures from derivative transactions are collateralized by cash and/or eligible securities based on limits as set forth in the respective agreements between the Company and counterparty financial institutions. The fair value changes of the derivative contracts traded with third-party financial institutions are expected to be largely comparable to the fair value changes of the derivative transactions executed with customers throughout the terms of these contracts, except for the credit valuation adjustment component of the contracts and the spread variances between the customer derivatives and the offsetting financial counterparty positions. The Company also utilizes foreign exchange contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in certain foreign currency on-balance sheet assets and liabilities and to meet funding needs in certain foreign currencies.

102

The Company is subject to credit risk associated with the counterparties to the derivative contracts. This counterparty credit risk is a multi-dimensional form of risk, affected by both the exposure and credit quality of the counterparty, both of which are sensitive to market-induced changes. The Company’s Credit Risk Management Committee provides oversight of credit risk, and the Company has guidelines in place to manage counterparty concentration, tenor limits, and collateral. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, by entering into legally enforceable master netting agreements, and by requiring collateral arrangements, where possible. The Company may also transfer counterparty credit risk related to interest rate swaps to third-party financial institutions through the use of credit risk participation agreements. Certain derivative contracts are required to be cleared through central clearing organizations to further mitigate counterparty credit risk, where variation margin is applied daily as settlement to the fair value of the derivative contracts. In addition, the Company incorporates credit valuation adjustments and other market standard methodologies to appropriately reflect the counterparty’s and the Company’s own nonperformance risk in the fair value measurement of its derivatives. As of June 30, 2025, the Company anticipates performance by all of its counterparties and has not incurred any related credit losses.

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



	June 30, 2025
							Weighted Average
($ in thousands)	Notional Amount		Fair Value Assets		Fair Value Liabilities		Fixed Rate		Floating Rate		(1)	Remaining Term (In months)
Cash flow hedges
Derivative Contracts Hedging Loans:
Interest rate swaps - Receive fixed pay floating	$	3,000,000	$	15,975	$	3,131	6.24	%	6.97	%		25.6
Interest rate swaps - Receive fixed pay floating - Forward starting	1,000,000		25,235		—		3.90	%	N/A		(2)	61.8
Interest rate collars - Buy floor sell cap	250,000		10		—		Cap: 4.58% Floor: 1.50%		4.32	%		11.0
Total cash flow hedges	$	4,250,000	$	41,220	$	3,131


















	December 31, 2024
							Weighted Average
($ in thousands)	Notional Amount		Fair Value Assets		Fair Value Liabilities		Fixed Rate		Floating Rate		(1)	Remaining Term (In months)
Cash flow hedges
Derivative Contracts Hedging Loans:
Interest rate swaps - Receive fixed pay floating	$	4,000,000	$	1,808	$	29,102	4.95	%	6.47	%		23.8
Interest rate swaps - Receive fixed pay floating - Forward starting	1,000,000		3,839		5,893		3.90	%	N/A		(2)	67.8
Interest rate collars - Buy floor sell cap	250,000		—		216		Cap: 4.58% Floor: 1.50%		4.55	%		17.0

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

(1) Floating rates are indexed to SOFR or Prime.

(2) Forward starting swaps are effective starting from July 2025 through October 2025.

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

103

Critical Accounting Policies and Estimates

The Company’s significant accounting policies are described in Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2024 Form 10-K. Certain of these policies include critical accounting estimates, which are subject to valuation assumptions, subjective or complex judgments about matters that are inherently uncertain, and it is likely that materially different amounts could be reported under different assumptions and conditions. The Company has procedures and processes in place to facilitate making these judgments. The following accounting policies are critical to the Company’s Consolidated Financial Statements:

• allowance for credit losses;

• fair value estimates;

• goodwill impairment; and

• income taxes.

For additional information on the Company’s critical accounting estimates involving significant judgments, see Item 7. MD&A — Critical Accounting Estimates in the Company’s 2024 Form 10-K.

Reconciliation of GAAP to Non-GAAP Financial Measures

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

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



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

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


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

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

(1) Applied statutory tax rate of 28.18% for the three and six months ended June 30, 2025, and 29.56% for the three and six months ended June 30, 2024.

(2) Annualized.

104



($ and shares in thousands, except per share data)		June 30, 2025		December 31, 2024
Stockholders’ equity	(a)	$	8,201,767	$	7,723,054
Less: Goodwill		(465,697)		(465,697)
Mortgage servicing assets		(4,628)		(5,234)
Tangible book value (non-GAAP)	(b)	$	7,731,442	$	7,252,123









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

105

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

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

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

Change in Internal Control over Financial Reporting

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

106

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 1A. RISK FACTORS

The Company’s 2024 Form 10-K contains disclosure regarding the risks and uncertainties related to the Company’s business under the heading Item 1A. Risk Factors . There have been no material changes to the Company’s risk factors as presented in the Company’s 2024 Form 10-K.

107

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchases of Equity Securities by the Issuer and Affiliated Purchasers

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



Calendar Month	Total Number of Shares Purchased (1)	Average Price Paid per Share of Common Stock (2)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (2) (3)
April	—	$	—	—	$	244
May	25,087	$	89.62	25,087	$	242
June	900	$	89.82	900	$	241
Second quarter	25,987	$	89.63	25,987

(1) Excludes the repurchase of common stock pursuant to various stock compensation plans and agreements.

(2) Excludes excise taxes and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax was imposed on net share repurchases effective January 1, 2023.

(3) On January 22, 2025, the Company’s Board of Directors authorized the additional repurchase of $300 million of its common stock, which will remain valid until December 31, 2026.

ITEM 5. OTHER INFORMATION

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

108

ITEM 6. EXHIBITS

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


Exhibit No.						Exhibit Description

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

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

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

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

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

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

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

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















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

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

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

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

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

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

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

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

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

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

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

109

GLOSSARY OF ACRONYMS


AFS	Available-for-sale	HELOC	Home equity lines of credit
ALCO	Asset/Liability Committee	HTM	Held-to-maturity
AOCI	Accumulated other comprehensive (loss) income	IAR	Independent Asset Review
ASC	Accounting Standards Codification	IDI	Insured deposit institution
ASU	Accounting Standards Update	LCH	London Clearing House
BTFP	Bank Term Funding Program	LGD	Loss given default
C&I	Commercial and industrial	LTV	Loan-to-value
CARB	California Air Resources Board	MBS	Mortgage-backed securities
CECL	Current expected credit Losses	MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
CET1	Common Equity Tier 1	MMBTU	Million British thermal unit
CFPB	Consumer Financial Protection Bureau	NAV	Net asset value
CLO	Collateralized loan obligation	NRSRO	Nationally recognized statistical rating organizations
CME	Chicago Mercantile Exchange	OBBBA	The One Big Beautiful Bill Act
CODM	Chief operating decision maker	OREO	Other real estate owned
CRA	Community Reinvestment Act	PAM	Proportional amortization method
CRE	Commercial real estate	PD	Probability of default
EPS	Earnings per share	RMB	Chinese Renminbi
ERM	Enterprise risk management	ROAE	Return on average common equity
EVE	Economic value of equity	ROATCE	Return on average tangible common equity
FDIC	Federal Deposit Insurance Corporation	ROC	Risk Oversight Committee
FHLB	Federal Home Loan Bank	RPA	Credit risk participation agreement
FRB	Federal Reserve Bank	RSU	Restricted stock unit
FTP	Funds transfer pricing	SBLC	Standby letter of credit
GAAP	Generally accepted accounting principles	SEC	U.S. Securities and Exchange Commission
GDP	Gross Domestic Product	SOFR	Secured Overnight Financing Rate
GHG	Greenhouse gas	U.S.	United States
GNMA	Government National Mortgage Association	USD	U.S. dollar
GSE	Government-sponsored entities

110

SIGNATURE

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

Dated:

August 7, 2025

EAST WEST BANCORP, INC.
(Registrant)

/s/ Christopher J. Del Moral-Niles

Christopher J. Del Moral-Niles

Executive Vice President and
Chief Financial Officer

111

TABLE OF CONTENTS

Exhibits

3.1.1 Certificate of Amendment to Certificate of Incorporation of the Registrant [Incorporated by reference to Exhibit 3(i).1 from Registrants Annual Report on Form10-K for the year ended December31, 2002 filed with the Commission on March28, 2003 (File No. 000-24939).] 3.1.2 Amendment to Certificate of Incorporation to Increase Authorized Shares of the Registrant [Incorporated by reference from Registrants Definitive Proxy Statement on Schedule14A filed with the Commission on April15, 2005 (File No. 000-24939).] 3.1.4 Certificate of Designations of 8.00% Non-Cumulative Perpetual Convertible Preferred Stock, SeriesA of the Registrant [Incorporated by reference to Exhibit 3.1 from Registrants Current Report on Form8-K, filed with the Commission on April30, 2008 (File No. 000-24939).] 3.1.5 Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series B of the Registrant [Incorporated by reference to Exhibit 3.1, 4.1 from Registrants Current Report on Form 8-K filed with the Commission on December 9, 2008 (File No. 000-24939).] 3.1.6 Certificate of Designations of Mandatorily Convertible Cumulative Non-Voting Perpetual Preferred Stock, Series C of the Registrant[IncorporatedbyreferencetoExhibit3.1, 4.1fromRegistrantsCurrentReportonForm8-Kfiledwith the Commission on November 12, 2009 (File No. 000-24939).] 3.2 Amended and Restated Bylaws of the Registrant dated March 14, 2023 [Incorporated by reference to Exhibit 3.1 from Registrants Current Report on Form8-K filed with the Commission on March 17, 2023(File No. 000-24939).] 31.1 Certification of Chief Executive Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002. Filed herewith. 31.2 Certification of Chief Financial Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002. Filed herewith. 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. 32.2 Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

EWBC 10-Q Quarter ended June 30, 2025

Exhibits