What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-27 compared with 2025-02-28 · 327 added, 333 removed, 947 unchanged (41% of the section changed)

11 unchanged sentences

Foreign Outstandings

Deposits and Other Sources of Funding

Regulatory Capital and Ratios

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Current Economic Developments

The Board of Governors of the Federal Reserve System (“Federal Reserve”) cut the Federal Funds Rate by a total of 100 bps through three consecutive cuts in September, November, and December of 2024 in response to the slower pace of inflation demonstrated by external data in the second half of 2024.

The Federal Reserve indicated at its December 2024 meeting that the interest rate cuts in 2025 would likely continue at a slower pace than previously anticipated, which was in line with the January 2025 decision to hold rates steady.

However, concerns over persistent inflation, labor market trends, and the potential impact of the Trump administration’s economic policies may influence the Federal Reserve’s response in 2025.

Elevated interest rates created affordability challenges for many borrowers in 2024.

The CRE market remained under pressure during 2024, primarily from decreased demand for office space, which affected the demand for CRE loans and loan performance.

It is uncertain whether such trends will continue or whether potential U.S.

economic growth in 2025 will include a moderate recovery in real estate investment activity.

Evolving trade policies and tariffs and recent government shutdowns raised concerns about inflation, supply chain disruptions, and slower economic growth.

The uncertain business environment led to a softening in the labor market, as companies adopted more cautious hiring practices, while reduced immigration further limited labor supply.

The residential mortgage and CRE markets moderated but housing affordability pressures remained elevated.

The Federal Reserve, which resumed lowering interest rates in late 2025, now faces heightened policy complexity in 2026.

The transition to a new Chairman of the Federal Reserve, which is expected after Chairman Jerome Powell’s term expires in May 2026, adds additional uncertainty, particularly as leadership debates continue over balancing inflation risks against labor market softening.

The economic uncertainty caused by these factors could result in decreased consumer spending and curb business investments.

The Company monitors changes in economic and industry conditions and their impacts on the Company’s business, customers, employees, communities and markets.

Further discussion of the potential impacts on the Company’s business due to the economic environment has been provided in Item 1A.

— Risk Factors — Risks Related to Financial Matters in this Form 10-K.

— Risk Factors — Risks Related to Geographic and Political Uncertainties and — Risks Related to Financial Matters in this Form 10-K.

Financial Review

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Return on average assets (“ROA”) 1.70 % 1.60 %

Return on average common equity (“ROE”) 15.93 % 17.91 %

Return on average tangible common equity (“TCE”) (1)

Return on average common equity (“ROAE”) 16.01 % 15.93 %

Return on average tangible common equity (“ROATCE”) (1)

16.99 % 17.05 %

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The Company’s 2025 net income was $1.3 billion, a $160 million or 14% increase from 2024.

The increase was primarily due to a decrease in noninterest expense and an increase in noninterest income, partially offset by higher provision for credit losses, lower net interest income before provision for credit losses, and higher income tax expense.

The increase was primarily driven by higher net interest income before provision for credit losses, increased noninterest income and a decrease in provision for credit losses, partially offset by higher noninterest expense and income tax expense.

Noteworthy items about the Company’s performance for 2025 included:

• Net interest income and net interest margin.

Year-over-year net interest income before provision for credit losse s decreased $34 million or 1% to $2.3 billion in 2024.

Full year 2024 net interest margin was 3.27% , a 34 bp decrease year-ov er-year.

Year-over-year net interest income before provision for credit loss es increased $274 million or 12% to $2.6 billion in 2025.

Full year 2025 net interest margin was 3.41%, a 14 bp increase year-over-year.

• Earnings per share growth.

Full year 2024 basic and diluted EPS each expanded 2% to $8.39 and $8.33, respectively.

• Efficiency ratio improvement.

Full year 2025 basic EPS and diluted EPS both expanded 14% to $9.58 and $9.52, respectively.

• Profitability ratios.

Full year 2025 ROA and ROAE of 1.70% and 16.01%, respectively, expanded 10 bps and 8 bps, respectively, year-over-year.

Full year 2025 ROATCE was 16.99%.

ROATCE is a non-GAAP financial measure.

For additional information regarding the reconciliation of non-GAAP financial measures, refer to Item 7.

MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-K.

• Efficiency ratio.

The efficiency ratio was 35.69% in 2025, a 96 bp improvement compared with 2024.

The improvement in the efficiency ratio primarily reflected a year-over-year decrease in the amortization of tax credit and CRA investments due to the expanded application of the proportional amortization method (“PAM”) since the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments — Equity Method and Joint Ventures on January 1, 2024, and a decrease in the FDIC charge.

The improvement in the efficiency ratio primarily reflected a year-over-year increase in net interest income before provision for credit losses.

• Asset growth.

Total assets reached $76.0 billion as of December 31, 2024, an increase of $6.4 billion or 9% year-over-year, primarily driven by an increase in AFS debt securities of $4.7 billion or 75%, and loan growth of $1.5 billion or 3%.

Total assets reached $80.4 billion as of December 31, 2025, an increase of $4.5 billion or 6% year-over-year, primarily driven by loan growth of $3.0 billion or 6%, and an increase in AFS debt securities of $2.4 billion or 22%.

• Deposit growth.

Total deposits were $63.2 billion as of December 31, 2024, an increase of $7.1 billion or 13% year-over-year, primarily reflecting growth across the Consumer and Business Banking, and Commercial Banking segments.

• Strong capital levels.

Stockholders’ equity was $7.7 billion as of December 31, 2024, up from $7.0 billion as of December 31, 2023.

Total deposits were $67.1 billion as of December 31, 2025, an increase of $3.9 billion or 6% year-over-year, primarily reflecting growth in time deposits and noninterest-bearing demand deposits.

• Capital levels.

Stockholders’ equity was $8.9 billion as of December 31, 2025, up $1.2 billion or 15%, from December 31, 2024.

Book value per share of $64.68 as of December 31, 2025, increased $8.89 or 16% from December 31, 2024.

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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 2024 decreased year-over-year, which primarily reflected higher deposit funding costs and shifts in the deposit mix to higher cost time and money market deposits, partially offset by loan growth and higher loan yields, and increases in AFS debt securities’ volume and yield.

Although the Federal Reserve cut interest rates three times since September 2024, the impacts of prior interest rate hikes spurred customers to seek high-yielding time deposits, which increased deposit costs at a faster rate than the increase in loan yields, and resulted in slight pressures on the Company’s net interest margin during 2024.

Net interest income and net interest margin for 2025 increased year-over-year.

The $274 million or 12% year-over-year increase in 2025 net interest income is primarily due to lower interest-bearing deposit funding costs and increases in the average balances of deposits, AFS debt securities and loans, partially offset by lower loan yields.

The 14 bps year-over-year increase in 2025 net interest margin primarily reflected lower interest-bearing deposit costs, partially offset by an increase in AFS securities and decreases in the yield and balances of interest-bearing cash and deposits with banks.

Average interest-earning assets increased $5.2 billion or 7% to $74.9 billion in 2025.

The yield on average interest-earning assets was 6.01% in 2024, an increase of 24 bps from 2023.

The increases in both the average balance and yield on interest-earning assets primarily reflected loan growth, an increase in AFS debt securities, and higher benchmark interest rates.

The average loan yield was 6.67% in 2024, an increase of 27 bps from 2023.

The year-over-year change in the average loan yield primarily reflected loan growth and the loan portfolio’s sensitivity to higher benchmark interest rates.

The year-over-year increase in average interest-earning assets primarily reflected increases in AFS debt securities and loan growth.

The yield on average interest-earning assets was 5.73% in 2025, a decrease of 28 bps from 2024.

The year-over-year decrease in the yield on average interest-earning assets primarily reflected the impact of lower benchmark interest rates of the loan portfolio.

The average loan yield was 6.40% in 2025, a decrease of 27 bps from 2024.

The year-over-year decrease in the average loan yield primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates.

Excluding the $32 million discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans from the 2025 loans’ interest income, the adjusted average loan yield for 2025 was 6.34%, compared with 6.67% in 2024.

Adjusted average loan yield is a non-GAAP financial ratio.

For additional details, refer to Item 7.

MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-K.

Approximately 58% of loans held-for-investment were variable-rate as of both December 31, 2025 and 2024.

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Average deposits of $64.8 billion in 2025, increased $5.2 billion or 9% from 2024.

Average noninterest-bearing deposits of $14.8 billion in 2024, decreased $2.4 billion or 14% from 2023.

Average noninterest-bearing deposits made up 25% and 31% of average deposits for 2024 and 2023, respectively.

The average cost of deposits was 2.88% in 2024, an increase of 69 bps from 2023.

The average cost of interest-bearing deposits was 3.83% in 2024, an increase of 64 bps from 2023.

These year-over-year increases primarily reflected shifts in the deposit mix to time and money market deposits, and higher deposit costs in response to the interest rate environment.

Average noninterest-bearing deposits of $15.6 billion in 2025, increased $799 million or 5% from 2024.

Average noninterest-bearing deposits made up 24% and 25% of average deposits in 2025 and 2024, respectively.

The average cost of deposits was 2.46% in 2025, a decrease of 42 bps from 2024.

The average cost of interest-bearing deposits was 3.24% in 2025, a decrease of 59 bps from 2024.

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, assets sold under repurchase agreements (“repurchase agreements”) and long-term debt.

In 2024, the average cost of funds was 3.02%, an increase of 67 bps from 2023.

The year-over-year increase was mainly driven by the change in the average cost of deposits discussed above.

In 2025, the average cost of funds was 2.56%, a decrease of 46 bps from 2024.

The year-over-year decrease was mainly driven by the change in the average cost of deposits as discussed above.

The Company utilizes various tools to manage interest rate risk.

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Interest-bearing cash and deposits with banks $ 4,264,056 $ 159,081 3.73 % $ 4,936,550 $ 231,794 4.70 % $ 4,638,630 $ 220,643 4.76 %

Assets purchased under resale agreements (1)

Assets purchased under resale agreements (“resale agreements”) (1)

425,000 6,475 1.52 % 519,263 11,254 2.17 % 691,223 20,164 2.92 %

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16,492,472 1,294,451 7.85 % 15,499,899 1,190,940 7.68 %

20,709,803 1,281,156 6.19 % 20,316,013 1,292,973 6.36 % 19,824,272 1,227,795 6.19 %

Residential mortgage 16,420,367 968,689 5.90 % 15,504,795 900,514 5.81 % 14,155,784 750,813 5.30 %

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54,624,959 3,494,661 6.40 % (4)

52,368,780 3,490,979 6.67 % 49,545,136 3,172,746 6.40 %

Restricted equity securities 161,400 11,242 6.97 % 147,080 10,104 6.87 % 82,177 4,062 4.94 %

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Cash and due from banks 386,798 345,056 555,689

Allowance for loan losses (688,448) (625,785) (559,746)

Allowance for loan, lease, and securities’ losses (763,105) (688,448) (625,785)

Other assets 3,393,682 3,446,350 3,788,199

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Bank Term Funding Program (“BTFP”), short-term borrowings and federal funds purchased 740 22 2.97 % 962,061 42,163 4.38 % 3,591,114 157,002 4.37 %

962,061 42,163 4.38 % 3,591,114 157,002 4.37 % 81,719 1,801 2.20 %

FHLB advances 3,181,509 141,472 4.45 % 2,752,733 147,269 5.35 % 123,288 6,430 5.22 %

Repurchase agreements 46,199 2,082 4.51 % 3,613 197 5.45 % 34,443 1,497 4.35 %

3,613 197 5.45 % 34,443 1,497 4.35 % 467,413 14,362 3.07 %

Long-term debt and finance lease liabilities 35,780 2,662 7.44 % 58,467 4,677 8.00 % 152,790 11,072 7.25 %

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(1) Includes the average balances and interest income for securities and loans purchased under resale agreements for 2023.

There were no loans purchased under resale agreements for 2024.

There were no loans purchased under resale agreements for both 2025 and 2024.

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

(3) Includes the amortization of net premiums on AFS debt securities of $26 million, $35 million and $31 million for 2025, 2024 and 2023, respectively.

(4) Includes $32 million of additional interest income from discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans during the twelve months ended December 31, 2025.

Refer to Item 7.

MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-K.

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

(5) Includes the accretion of net deferred loan fees and amortization of net premiums, which totaled $53 million for each of 2024 and 2023, and $50 million for 2022.

(6) Includes the accretion of net deferred loan fees and amortization of net premiums, which totaled $81 million for 2025 and $53 million for each of 2024 and 2023.

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.

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2024 2024 vs.

Total Change Changes Due to Total Change Changes Due to

($ in thousands) Volume Yield/Rate Volume Yield/Rate

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 $ (72,713) $ (28,990) $ (43,723) $ 11,151 $ 14,019 $ (2,868)

Assets purchased under resale agreements (1)

Resale agreements (1)

(4,779) (1,813) (2,966) (8,910) (4,382) (4,528)

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Money market deposits (37,374) 59,918 (97,292) 126,388 83,521 42,867

Saving deposits 2,191 (2,930) 5,121 7,023 (2,792) 9,815

Savings deposits (4,245) (495) (3,750) 2,191 (2,930) 5,121

Time deposits (45,921) 118,165 (164,086) 343,878 213,823 130,055

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$ 273,913 $ 136,642 $ 137,271 $ (33,538) $ (1,827) $ (31,711)

(1) Includes the impact of securities purchased under resale agreements for 2024 , and both securities and loans purchased under resale agreements for 2023 and 2022.

(1) Includes the average balances and interest income for securities and loans purchased under resale agreements for 2023.

There were no loans purchased under resale agreements for both 2025 and 2024.

Noninterest Income

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($ in thousands) 2025 2024 % Change from 2024 2023

Deposit account fees $ 103,880 $ 93,811 11 % $ 95,177

Lending fees 98,455 83,876 17 % 79,208

Commercial and consumer deposit-related fees $ 111,844 $ 103,880 8 % $ 93,811

Lending and loan servicing fees 107,988 98,455 10 % 83,876

Foreign exchange income 58,905 54,605 8 % 48,276

Wealth management fees 50,000 38,627 29 % 26,994

Customer derivative income, net of mark-to-market adjustments:

Customer derivative income 19,053 14,923 28 % 23,216

Net gains on sales of loans 44 3,634 (99) % 6,411

Derivative mark-to-market and credit valuation adjustments (2,197) 1,478 NM (3,016)

Total customer derivative income, net of mark-to-market adjustments 16,856 16,401 3 % 20,200

Net gains (losses) on AFS debt securities

2,069 (6,862) NM 1,306

963 2,069 (53) % (6,862)

Other investment income 10,868 5,611 94 % 9,348

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Total noninterest income $ 379,227 $ 335,218 13 % $ 293,112

Noninterest income as a percentage of total revenue

13 % 13 % 11 %

NM — Not meaningful.

Noninterest income comprised 13% and 11% of total revenue in 2024 and 2023, respectively.

Noninterest income for 2024 was $335 million, an increase of $40 million compared with 2023.

The increase was primarily due to higher lending, wealth management, and deposit account fees, net gains on AFS debt securities, and foreign exchange income, partially offset by lower customer derivative, other investment income and net gains on sales of loans.

Deposit account fees were $104 million in 2024, an increase of $10 million or 11%, compared with 2023.

The year-over-year increase was primarily due to analysis service fees, which reflected fee increases and customer growth.

Lending fees were $98 million in 2024, an increase of $15 million or 17%, compared with 2023.

The year-over-year increase was primarily due to higher trade finance and commitment fees driven by customer growth, and higher credit enhancement fee income.

Noninterest income comprised 13% of total revenue in both 2025 and 2024.

Noninterest income for 2025 was $379 million, a $44 million or 13% increase compared with 2024.

The increase was primarily due to higher wealth management fees, lending and loan servicing fees, commercial and consumer deposit-related fees, other income, other investment income, and foreign exchange income.

Commercial and consumer deposit-related fees were $112 million in 2025, an increase of $8 million or 8%, compared with 2024.

This year-over-year increase was primarily due to analysis service fees, which reflected higher commercial customer activity and fee increases.

Lending and loan servicing fees were $108 million in 2025, an increase of $10 million or 10%, compared with 2024.

The year-over-year increase was primarily due to higher trade finance and credit enhancement fees driven by increased customer activity.

Foreign exchange income was $59 million, an increase of $4 million or 8%, compared with 2024.

The year-over-year increase was primarily due to the favorable valuation of certain foreign currency denominated balance sheet items.

The year-over-year increase was primarily due to increased customer activity and the favorable valuation of certain foreign currency denominated balance sheet items, partially offset by losses on foreign exchange trades.

Wealth management fees were $50 million in 2025, an increase of $11 million or 29%, compared with 2024.

The year-over-year increase primarily reflected customer demand for higher-yielding products in response to the interest rate environment.

Customer derivative income was $16 million, a decrease of $4 million or 19% compared with 2023.

The year-over-year decrease primarily reflected lower fee income due to decreased customer activity, partially offset by favorable credit valuation adjustments.

Net gains on sales of loans were $44 thousand, a decrease of $4 million, or 99%, compared with 2023.

The 2023 net gain on sales of loans primarily reflected CRE loan sales.

Net gains on AFS debt securities of $2 million in 2024 were due to sale s of U.S.

government agency residential mortgage-backed securities.

In comparison, net losses on AFS debt securities of $7 million in 2023, was due to a $10 million write-off of an impaired subordinated AFS debt security, partially offset by a $3 million gain when the security was subsequently sold.

Other investment income was $6 million in 2024, a decrease of $4 million or 40% compared with 2023.

The year-over-year decrease primarily reflected lower earnings from the Company’s equity method CRA investments.

The year-over-year increase primarily reflected higher customer demand for wealth management products such as fixed-rate corporate bonds and fixed annuities.

Other investment income was $11 million in 2025, an increase of $5 million or 94% compared with 2024.

The year-over-year increase primarily reflected $5 million of recoveries, $3 million of which were related to the Company’s previous investment in DC Solar recorded in other investment income, $1 million of fair value gains from the derivative liability-classified equity contract related to the 2023 Rayliant investment, and higher distributions from affordable housing partnership investments.

Other income was $22 million in 2025, an increase of $6 million or 40% compared with 2024.

The year-over-year increase primarily reflected $4 million increased income from bank-owned life insurance and a structuring fee received from an energy tax credit investment.

Noninterest Expense

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Total noninterest expense $ 1,046,396 $ 958,073 9 % $ 1,020,596

Noninterest expense was $1.0 billion in 2024, a decrease of $65 million or 6%, compared with 2023.

The decrease was primarily due to lower amortization of tax credit and CRA investments, and deposit insurance premiums and regulatory assessments, partially offset by higher compensation and employee benefits, and other operating expense.

Noninterest expense was $1.0 billion in 2025, an increase of $88 million or 9%, compared with 2024.

The increase was primarily due to higher compensation and employee benefits, amortization of tax credit and CRA investments, other operating expense, and computer and software related expenses, partially offset by lower deposit insurance premiums and regulatory assessments, and deposit account expense.

Compensation and employee benefits were $619 million in 2025, an increase of $68 million or 12%, compared with 2024.

The year-over-year increase was primarily driven by annual merit increases and staffing growth.

The year-over-year increase was primarily driven by $31 million of additional compensation expense recognized from the change in equity award expense recognition for retirement eligible employees, while the remaining increase was due to merit increases and staffing growth.

Refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation for details related to the change in the timing of recognition for awards granted to retirement-eligible employees.

Deposit account expense was $35 million in 2025, a decrease of $12 million or 26%, compared with 2024.

The year-over-year decrease was primarily driven by lower balances and referral rates paid on certain deposit accounts.

Computer and software related expenses were $55 million in 2025, an increase of $7 million or 16% compared with 2024.

The year-over-year increases primarily reflected higher software expenses and data processing costs to support the Company’s growth.

Deposit insurance premiums and regulatory assessments were $32 million in 2025, a decrease of $14 million or 31%, compared with 2024.

The year-over-year decrease was primarily due to a $9 million FDIC charge recorded in 2024, compared with the initial $70 million FDIC charge recorded in 2023.

The year-over-year decrease was primarily due to lower FDIC charges, which reflected a decrease in the estimated losses to the FDIC’s DIF.

For additional information related to the FDIC charge, see Item 1.

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Other operating expense was $165 million in 2025, an increase of $17 million or 11%, compared with 2024.

The year-over-year increase was primarily due to write-downs of other real estate owned (“OREO”).

Amortization of tax credit and CRA investments was $54 million in 2024, a decrease of $66 million or 55%, compared with 2023.

The year-over-year decrease was primarily due to the expanded application of the PAM since the adoption of ASU 2023-02, Investments — Equity Method and Joint Ventures on January 1, 2024, and the timing of tax credit investments that closed in a given period.

For additional information on the PAM, see Note 1 — Summary of Significant Accounting Policies and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net to the Consolidated Financial Statements in this Form 10-K.

The following table presents the income before income taxes, income tax expense and effective tax rate for the periods indicated:

The year-over-year increase was primarily due to problem loan related expenses, higher consulting expenses for various Company initiatives, and other real estate owned (“OREO”) write-downs, partially offset by a decrease in interest paid on cash collateral.

Amortization of tax credit and CRA investments was $75 million in 2025, an increase of $21 million or 38%, compared with 2024.

The year-over-year increase was primarily due to the timing of tax credit investments that closed in a given period.

The following table presents income before income taxes, income tax expense and effective tax rate for the periods indicated:

Year Ended December 31,

($ in thousands) 2024 2023 2022

($ in thousands) 2025 2024 % Change from 2024 2023

Income before income taxes $ 1,725,460 $ 1,481,861 16% $ 1,459,770

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Effective tax rate 23.2 % 21.3 % 20.5 %

Income tax expense for 2024, compared with 2023, increased $18 million or 6%, primarily due to the impacts from the expanded application of PAM on the Company’s tax credit investments following the adoption of ASU 2023-02 on January 1, 2024, partially offset by an increase in tax credits and prior period adjustments in 2023.

The differences between the 2024 and 2023 effective tax rates from the federal statutory rate of 21% were primarily due to state taxes and tax credits associated with renewable energy, historic and new market tax credit related projects as described in Note 11 — Income Taxes to the Consolidated Financial Statements in this Form 10-K.

Income tax expense for 2025, compared with 2024, increased $84 million or 27%, 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 in 2025, partially offset by favorable adjustments driven by a lower California state tax apportionment.

The differences between the 2025 and 2024 effective tax rates from the federal statutory rate of 21% were primarily due to state taxes, partially offset by tax credits associated with energy, affordable housing, historic and new market tax credit investments.

Refer to Note 11 — Income Taxes to the Consolidated Financial Statements in this Form 10-K.

Operating Segment Results

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and (3) Treasury and Other.

These segments are defined by the type of customers served, and the related products and services provided.

These segments are defined based on customer type, the channels where customers are served, and the products and services provided.

For a description of the Company’s internal management reporting process, including the segment cost allocation methodology, see Note 17 — Business Segments to the Consolidated Financial Statements in this Form 10-K.

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.

During 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.

Prior years’ balances have been reclassified for comparability.

Consumer and Business Banking

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($ in thousands) 2025 2024 $ % 2023

Net interest income before provision for credit losses

$ 1,079,288 $ 1,152,033 $ (72,745) (6) % $ 1,225,954

Noninterest income 120,779 108,773 12,006 11 % 103,210

Total revenue before provision for credit losses

9 unchanged sentences

Average deposits $ 33,384,458 $ 30,815,912 $ 2,568,546 8 % $ 28,174,781

Consumer and Business Banking segment net income decreased $32 million or 5% to $563 million in 2024, primarily due to a decrease in net interest income and higher compensation and employee benefits, partially offset by lower other noninterest expense and provision for credit losses.

The decrease in net interest income before provision for credit losses was primarily driven by a higher cost of interest-bearing deposits and a continued shift to interest-bearing products in the deposit mix.

The decrease in provision for credit losses was primarily driven by the improvement in the macroeconomic outlook in the residential mortgage loan sector.

The increase in compensation and employee benefits was primarily driven by annual merit increases and staffing growth.

The decrease in other noninterest expense was primarily driven by lower deposit insurance premiums and regulatory assessments compared with the higher FDIC special assessment charge recognized in 2023.

Consumer and Business Banking segment net income decreased $61 million or 11% year-over-year to $503 million in 2025, primarily due to a $73 million decrease in net interest income, a $23 million increase in compensation and employee benefits, and a $17 million increase in provision for credit losses, partially offset by a $12 million increase in noninterest income.

The decrease in net interest income before provision for credit losses was primarily driven by the year-over-year decline in interest rates.

The increase in noninterest income was mainly driven by higher wealth management fees in 2025.

The increase in provision for credit losses was driven by loan growth and the worsening macroeconomic outlook in the residential mortgage loan sector in 2025.

The increase in compensation and employee benefits 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 Commercial Banking segment primarily generates domestic 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.

The Commercial Banking segment primarily generates commercial loan and deposit products.

Commercial deposit products and other financial services include treasury management, foreign exchange services, and interest rate and commodity risk hedging.

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($ in thousands) 2025 2024 $ % 2023

Net interest income before provision for credit losses

$ 1,028,314 $ 1,125,931 $ (97,617) (9) % $ 1,116,013

Noninterest income 218,177 197,780 20,397 10 % 168,502

Total revenue before provision for credit losses

9 unchanged sentences

Average deposits $ 27,137,950 $ 25,820,956 $ 1,316,994 5 % $ 23,304,066

Commercial Banking segment net income decreased $35 million or 6% to $536 million in 2024, primarily driven by increases in provision for credit losses and compensation and employee benefits, partially offset by higher noninterest income.

The increase in noninterest income was primarily driven by higher lending and deposit account fees.

The increase in provision for credit losses was primarily driven by higher net charge-offs in the C&I portfolio.

The increase in compensation and employee benefits was primarily driven by annual merit increases and staffing growth.

Commercial Banking segment net income decreased $42 million or 8% year-over-year to $494 million in 2025, primarily driven by a $98 million decrease in net interest income, partially offset by a $20 million increase in noninterest income and a $15 million decrease in provision for credit losses.

The net interest income decrease was primarily driven by the year-over-year decline in interest rates.

The noninterest income increase was primarily due to increases in lending and loan servicing fees, commercial deposit-related fees, and wealth management fees.

The decrease in provision for credit losses was primarily driven by lower net charge-offs in the C&I portfolio.

The increase in compensation and employee benefits was primarily driven by staffing growth.

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, 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.

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

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($ in thousands) 2025 2024 $ % 2023

Net interest income (loss) before (reversal of) provision for credit losses $ 445,027 $ 752 $ 444,275 NM $ (29,713)

Noninterest income 40,271 28,665 11,606 40 % 21,400

Total revenue (loss) before (reversal of) provision for credit losses

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Total noninterest expense 172,144 109,758 62,386 57 % 179,191

Segment loss before income taxes (78,697) (190,659) 111,962 59 % (146,250)

Income tax benefit (145,413) (186,702) 41,289 22 % (166,597)

Segment net income (loss)

Segment income (loss) before income taxes

331,283 (78,697) 409,980 NM (190,659)

Income tax expense (benefit)

2,290 (145,413) 147,703 NM (186,702)

Segment net income (loss)

$ 328,993 $ 66,716 $ 262,277 393 % $ (3,957)

Average loans $ 310,352 $ 405,897 $ (95,545) (24) % $ 439,605

1 unchanged sentence

NM — Not meaningful.

Treasury and Other segment loss before income taxes decreased $112 million in 2024, primarily driven by lower noninterest expense and higher net interest income.

The increase in net interest income was primarily driven by higher interest income from AFS debt securities.

The decrease in noninterest expense was primarily due to lower amortization of tax credit and CRA investments resulting from the expanded application of PAM since the adoption of ASU 2023-02 on January 1, 2024, where the amortization of tax credit and CRA investments were recorded as a component of income tax benefit in this segment.

Treasury and Other segment income before income taxes increased $410 million in 2025, primarily driven by a $444 million increase in net interest income and $16 million increase in reversal of credit losses, partially offset by a $33 million increase in compensation and employee benefits and a $29 million increase in other noninterest expense.

The net interest income increase was mainly driven by higher AFS debt securities’ interest income due to higher average balances and higher loan interest income, primarily due to $32 million of additional interest income from discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans.

The increase in reversal of credit losses was primarily due to an $18 million reversal of credit losses related to the payoff of purchased credit impaired loans in the third quarter of 2025.

The increase in compensation and employee benefits was primarily driven by additional compensation expense from a change in equity award expense recognition for retirement eligible employees recorded in the third quarter of 2025.

Refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements in this Form 10-K for further details related to the change in the timing of recognition for awards granted to retirement-eligible employees.

The increase in other noninterest expense was primarily driven by higher amortization of tax credit and CRA investments.

Income tax expense is allocated to the Consumer and Business Banking and the Commercial Banking segments by applying statutory income tax rates to the respective segment income before income taxes.

The income tax expense or benefit in the Treasury and Other segment consists of the remaining unallocated income tax expense or benefit after allocating income tax expense to the two core segments, and the impact of tax credit investment activity.

Balance Sheet Analysis

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Total debt securities $ 16,489,839 $ 15,691,966 $ 14,423,188 $ 13,234,565

(1) Credit ratings express opinions about the credit quality of a debt security.

The Company determines the credit rating of a security according to the lowest credit rating made available by nationally recognized statistical rating organizations (“NRSROs”).

(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 values.

(2) For debt securities not rated by NRSROs, the Company uses other factors which include but are not limited to the priority in collections within the securitization structure, and whether the contractual payments have historically been on time.

(3) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $7.3 billion of amortized cost and $7.2 billion of fair value as of December 31, 2024, and $1.3 billion of amortized cost and $1.2 billion of fair value as of December 31, 2023.

(4) Includes GNMA HTM debt securities totaling $86 million of amortized cost and $68 million of fair value as of December 31, 2024, and $92 million of amortized cost and $75 million of fair value of as of December 31, 2023.

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 $9.6 billion of both amortized cost and fair value as of December 31, 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 $79 million of amortized cost and $65 million of fair value as of December 31, 2025, and $86 million of amortized cost and $68 million of fair value as of December 31, 2024.

As of December 31, 2025, the Company’s AFS and HTM debt securities portfolios had an effective duration (defined as the sensitivity of the value of the portfolio to interest rate changes) of 3.0 and 5.9, respectively, compared with 2.0 and 6.2, respectively, as of December 31, 2024.

The decrease in the AFS effective duration was primarily due to the purchases of floating rate GNMA securities during 2024.

The decrease in the HTM effective duration was due to the portfolio seasoning.

The Company estimated that the effective duration of its AFS debt securities was 3.1 for an instantaneous 100 bp parallel increase and 2.1 for an instantaneous 100 bp parallel decrease as of December 31, 2024.

The effective duration of AFS debt securities increased primarily due to the longer maturities of newly purchased AFS securities, while the HTM debt securities’ effective duration declined slightly due to the general runoff of the portfolio.

Available-for-Sale Debt Securities

The fair value of AFS debt securities increased $4.7 billion or 75% to $10.8 billion in 2024 from December 31, 2023, primarily due to the purchases of GNMA securities.

AFS debt securities increased $2.4 billion or 22% to $13.2 billion in 2025 from December 31, 2024, primarily due to the 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 $406 million as of December 31, 2025, compared with $659 million as of December 31, 2024.

As of December 31, 2024 and 2023, 99% and 97%, respectively, of the carrying value of the AFS debt securities portfolio was rated investment grade by NRSROs.

Of the AFS debt securities with gross unrealized losses, substantially all were rated investment grade as of both December 31, 2025 and 2024.

There was no allowance for credit losses provided against the AFS debt securities as of both December 31, 2024 and 2023.

Additionally, there were no credit losses recognized in earnings for both 2024 and 2023.

There was $2 million of allowance for credit losses against AFS debt securities as of December 31, 2025, which was recognized as Provision for credit losses on the Consolidated Statement of Income.

In comparison, there was no allowance for credit losses against AFS debt securities as of December 31, 2024.

Held-to-Maturity Debt Securities

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The composition of the loan portfolio as of December 31, 2025 was similar to the composition as of December 31, 2024.

The following table presents the composition of the Company’s total loan portfolio by loan type as of December 31, 2024 and 2023:

($ in thousands) Amount % Amount %

C&I $ 17,397,158 32 % $ 16,581,079 32 %

CRE 14,655,340 28 % 14,777,081 28 %

Multifamily residential 4,953,442 9 % 5,023,163 10 %

Construction and land 666,162 1 % 663,868 1 %

Total CRE 20,274,944 38 % 20,464,112 39 %

Total commercial 37,672,102 70 % 37,045,191 71 %

Residential mortgage:

Single-family residential 14,175,446 27 % 13,383,060 26 %

HELOCs 1,811,628 3 % 1,722,204 3 %

Total residential mortgage 15,987,074 30 % 15,105,264 29 %

Other consumer 67,461 0 % 60,327 0 %

Total consumer 16,054,535 30 % 15,165,591 29 %

Total loans held-for-investment (1)

53,726,637 100 % 52,210,782 100 %

Allowance for loan losses (702,052) (668,743)

Loans held-for-sale

Total loans, net $ 53,024,585 $ 51,542,155

(1) Includes $46 million and $71 million of net deferred loan fees and net unamortized premiums as of December 31, 2024, and 2023, respectively.

The following charts present the composition of the Company’s total loan portfolio by loan type as of December 31, 2025 and 2024:

Total loans held-for-investment of $56.9 billion as of December 31, 2025 increased $3.2 billion or 6% from December 31, 2024, reflecting well-balanced growth across major loan types.

For additional information on the Company’s loans held-for-investment outstanding balances, see Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K.

The commercial loan portfolio, which includes C&I and total CRE loans, comprised 70% of total loans held-for-investment as of both December 31, 2025 and 2024.

The Company actively monitors the commercial lending portfolio for credit risk and reviews credit exposures for sensitivity to changing economic conditions.

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Total C&I loan commitments were $27.7 billion and $25.8 billion as of December 31, 2025 and 2024, respectively, with a utilization rate of 67% as of both dates.

As of December 31, 2024, total C&I loans were $17.4 billion, up $816 million or 5% from December 31, 2023.

As of December 31, 2025, total C&I loans were $18.7 billion, up $1.3 billion or 7% 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 commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance and equipment financing.

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 $845 million and $645 million as of December 31, 2024 and 2023, respectively.

This portfolio totaled $1.0 billion and $845 million as of December 31, 2025 and 2024, respectively.

The Company also has a portfolio of loans to non-depository financial institutions.

This portfolio totaled $7.6 billion and $6.0 billion as of December 31, 2025 and 2024, respectively, which primarily consisted of capital call lending and other credit facilities extended to these institutions.

The majority of the C&I loans had variable interest rates as of both December 31, 2025, and 2024.

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December 31, 2025 December 31, 2024

($ in thousands) Amount % ($ in thousands) Amount %

Real estate investment & management $ 2,381,186 14 % Capital call lending $ 2,171,367 13 %

Capital call lending 2,230,457 13 % Real estate investment & management 1,970,713 12 %

Media & entertainment 2,031,242 12 % Media & entertainment 1,891,199 11 %

Manufacturing & wholesale 1,074,073 6 % Financial services 1,136,731 7 %

Financial services 1,005,216 6 % Manufacturing & wholesale 1,110,544 7 %

Infrastructure & clean energy 963,165 5 % Infrastructure & clean energy 1,023,662 6 %

Tech & telecom 770,521 4 % Tech & telecom 729,922 4 %

Healthcare 685,550 4 % Food production & distribution 655,340 4 %

Food production & distribution 664,135 4 % Consumer finance 586,468 4 %

Oil & gas 576,605 3 % Hospitality & leisure 576,328 3 %

Other 5,015,008 29 % Other 4,728,805 29 %

Total C&I $ 17,397,158 100 % Total C&I $ 16,581,079 100 %

(1) Revised prior year’s segmentation to conform with the current year’s categories.

($ in thousands) Amount % Amount %

Real estate investment & management $ 2,319,896 13 % $ 2,381,186 14 %

Capital call lending 2,258,895 12 % 2,230,457 13 %

Media & entertainment 2,227,571 12 % 2,031,242 12 %

Manufacturing & wholesale 1,162,245 6 % 1,074,073 6 %

Financial services 1,160,853 6 % 1,005,216 6 %

Infrastructure & clean energy 1,113,387 6 % 963,165 5 %

Food production & distribution 1,109,996 6 % 664,135 4 %

Healthcare 703,769 4 % 685,550 4 %

Technology & telecommunications 679,036 4 % 770,521 4 %

Hospitality & leisure 646,926 3 % 575,815 3 %

Oil & gas 595,102 3 % 576,605 3 %

Art finance 503,326 3 % 548,065 3 %

Equipment finance 447,117 2 % 470,132 3 %

General & Other 3,722,636 20 % 3,420,996 20 %

Total C&I $ 18,650,755 100 % $ 17,397,158 100 %

Commercial — Total Commercial Real Estate Loans.

The total CRE portfolio consists of CRE, multifamily residential, and construction and land loans, and affordable housing lending.

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 total CRE portfolio consists of CRE, multifamily residential, and construction and land loans.

The Company’s underwriting parameters for CRE loans are established in compliance with supervisory guidance and include property type, geography and loan-to-value (“LTV”).

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 December 31, 2025 and 2024.

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December 31, 2025 December 31, 2024

($ in thousands) Amount % Amount %

($ in thousands) Amount % Weighted-Avg.

Amount % Weighted-Avg.

Property types:

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Total CRE loans $ 21,261,773 100 % 49 % $ 20,274,944 100 % 50 %

The weighted-average LTV ratio of the total CRE loan portfolio was 50% as of both December 31, 2024 and 2023.

Weighted-average LTV is based on the most recent LTV, which considers the latest available appraisal and current loan commitment.

Approximately 91% of total CRE loan commitments had an LTV ratio of 65% or lower as of both December 31, 2024 and 2023.

(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 December 31, 2025 and 2024.

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Total loans $ 14,655,340 100 % $ 4,953,442 100 % $ 666,162 100 % $ 20,274,944 100 %

As of both December 31, 2024 and 2023, 69% of total CRE loans were concentrated in California.

The percentage of total CRE loans located in California was 68% and 69% as of December 31, 2025 and 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 this Form 10-K.

Risk Factors — Risks Related to Geographic and Political Uncertainties and Risks Related to Financial Matters in this 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.

Interest rates on CRE loans may be fixed, variable or hybrid.

As of December 31, 2024, 57% of our CRE portfolio had variable rates, of which 52% had customer-level interest rate derivative contracts in place.

These were hedging contracts offered by the Company to help our customers manage their interest rate risk while the Bank’s exposure remained variable rate.

In comparison, as of December 31, 2023, 58% of our CRE portfolio had variable rates, of which 50% had customer-level interest rate derivative contracts in place.

The Company seeks to underwrite loans with conservative standards for cash flows, debt service coverage and LTV.

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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 December 31, 2025, of the 58% of our CRE portfolio that had variable rates , 52% 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.

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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.

As of December 31, 2024, 50% of our multifamily residential portfolio had variable rates, of which 45% had customer-level interest rate derivative contracts in place.

In comparison, as of December 31, 2023, 48% of our multifamily residential loan portfolio had variable rates, of which 40% had customer-level interest rate derivative contracts in place.

These were hedging contracts offered by the Company to help our customers manage their interest rate risk while the Bank’s exposure remained variable rate.

The Company also offers hedging products to our customers to manage their interest rate risks.

As of December 31, 2025, of th e 51% of our multifamily residential portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place.

In comparison, as of December 31, 2024, of the 50% of our multifamily residential loan portfolio that was variable rate, half 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 made up of $506 million in loans outstanding, plus $391 million in unfunded commitments as of December 31, 2024, compared with $526 million in loans outstanding, plus $672 million in unfunded commitments as of December 31, 2023.

Land loans totaled $160 million as of December 31, 2024, compared with $138 million as of December 31, 2023.

Construction loan exposure was comprised of $544 million in loans outstanding, and $419 million in unfunded commitments as of December 31, 2025, compared with $506 million in loans outstanding, and $391 million in unfunded commitments as of December 31, 2024.

Land loans totaled $198 million and $160 million as of December 31, 2025 and 2024, respectively.

Residential mortgage loans are primarily originated through the Bank’s branch network .

The average total residential loan size was $437 thousand and $436 thousand as of December 31, 2024 and 2023, respectively.

The following tables summarize the Company’s single-family residential and HELOC loan portfolios by geography as of December 31, 2024 and 2023:

The average residential mortgage loan size was $439 thousand and $437 thousand as of December 31, 2025 and 2024, respectively.

The following tables summarize the Company’s single-family residential and HELOC loan portfolios by geography and lien priority as of December 31, 2025 and 2024:

December 31, 2025

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Georgia 466,790 3 % 20,040 1 % 486,830 3 %

Texas 404,837 3 % 33,959 2 % 438,796 3 %

Nevada 423,972 3 % — — % 423,972 3 %

447,097 3 % 32,578 2 % 479,675 3 %

468,461 3 % — — % 468,461 3 %

Other markets 14,777 0 % 5,530 0 % 20,307 0 %

5 unchanged sentences

Consumer — Single-Family Residential Loans.

The Company was in a first lien position for all of its single-family residential loans as of both December 31, 2024 and 2023.

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 December 31, 2025 and 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% and 53% as of December 31, 2024 and 2023, respectively.

The weighted-average LTV ratio was 52% as of both December 31, 2025 and 2024.

These loans have historically experienced low delinquency and loss rates.

The Company offers a variety of single-family residential first lien 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.

Consumer — Home Equity Lines of Credit.

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The Company was in a first lien position for 70% and 73% of total outstanding HELOCs as of December 31, 2025 and 2024, respectively.

First lien HELOC LTV ratios are obtained by dividing the first lien HELOC against the value of the property at origination.

Junior lien HELOCs for which the Bank also holds the first lien loan, are evaluated using combined LTV.

The combined LTV measures the carrying value of the Bank’s loan and available line of credit combined with any outstanding senior liens against the value of the property at origination.

The weighted-average LTV ratio was 46% and 48% as of December 31, 2024 and 2023, respectively.

Many of these loans are reduced documentation loans, resulting in a low LTV ratio at origination, typically 65% or less.

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 December 31, 2025 and 2024.

As a result, these loans have historically experienced low delinquency and loss rates.

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Foreign Outstandings

The Company’s overseas offices, which include the branch in Hong Kong and the subsidiary bank in China, are subject to the general risks inherent in conducting business in foreign countries, such as regulatory, economic and political uncertainties, and foreign exchange risks.

The following table presents the major financial assets held in the Company’s overseas offices as of December 31, 2024 and 2023:

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 December 31, 2025 and 2024:

($ in thousands) Amount % of Total Consolidated Assets Amount % of Total Consolidated Assets

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Total assets $ 2,692,309 3 % $ 2,474,447 3 %

Subsidiary bank in China:

China subsidiary bank branches:

Cash and cash equivalents $ 640,986 1 % $ 656,971 1 %

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government-sponsored enterprise mortgage-backed securities, U.S.

Treasury securities, and foreign government bonds as of December 31, 2024;

comprised of U.S.

Treasury securities and foreign government bonds as of December 31, 2023.

Treasury securities, and foreign government bonds as of both December 31, 2025 and 2024.

(2) Primarily comprised of C&I loans as of both December 31, 2025 and 2024.

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

The following table presents the total revenue generated by the Company’s overseas offices in 2024, 2023 and 2022:

The following table presents the total revenue generated by the Company’s international branches in 2025, 2024 and 2023:

Year Ended December 31,

3 unchanged sentences

Total revenue $ 73,938 3 % $ 69,809 3 % $ 55,747 2 %

Subsidiary Bank in China:

China subsidiary bank branches:

Total revenue $ 29,351 1 % $ 29,790 1 % $ 32,569 1 %

The Company maintains a strong capital base to support its anticipated asset growth, operating needs, and credit risks, 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.

On March 3, 2020, the Company’s Board of Directors authorized the repurchase of $500 million of the Company’s common stock.

The Company repurchased $144 million of common stock or 1,943,346 shares, at an average cost of $74.33 per share in 2024.

In comparison, the Company repurchased $82 million of common stock or 1,506,091 shares, at an average cost of $54.56 per share in 2023.

As of December 31, 2024, the total remaining amount under the repurchase authorization was $29 million, excluding excise taxes and commissions.

In addition, on January 22, 2025, East West’s Board of Directors authorized the repurchase of up to an additional $300 million East West stock.

The Company’s stockholders’ equity as of December 31, 2024 increased $772 million or 11% to $7.7 billion from December 31, 2023.

The increase was primarily due to $1.2 billion of net income, partially offset by $310 million of cash dividends declared and $144 million of common stock repurchases.

For other factors that contributed to the changes in stockholders’ equity, refer to Item 8.

Financial Statements — Consolidated Statement of Changes in Stockholders’ Equity in this Form 10-K.

The Company paid a cash dividend of $2.20 per share in 2024, an increase of 15% from 2023.

In January 2025, the Company’s Board of Directors declared a first quarter 2025 cash dividend of $0.60 per share, which represents a 9% or five cents per share increase from the previous quarter.

The dividend was paid on February 17, 2025, to stockholders of record as of February 3, 2025.

Deposits and Other Sources of Funding

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.

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MD&A — Risk Management — Liquidity Risk Management in this Form 10-K for a discussion of the Company’s liquidity management.

The following table summarizes the Company’s sources of funds as of December 31, 2024 and 2023:

The following table summarizes the Company’s deposits by product type as of December 31, 2025 and 2024:

December 31, 2025 December 31, 2024 Change

($ in thousands) Amount % Amount % $ %

Deposits by product:

Noninterest-bearing demand $ 16,697,099 25 % $ 15,450,428 24 % $ 1,246,671 8 %

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Total deposits $ 67,082,701 100 % $ 63,175,023 100 % $ 3,907,678 6 %

BTFP borrowings

$ — — % $ 4,500,000 97 % $ (4,500,000) (100) %

FHLB advances 3,500,000 99 % — — % 3,500,000 100 %

Long-term debt 32,001 1 % 148,249 3 % (116,248) (78) %

Total other funds $ 3,532,001 100 % $ 4,648,249 100 % $ (1,116,248) (24) %

Total sources of funds $ 66,707,024 $ 60,740,687 $ 5,966,337 10 %

The Company’s strategy is to grow and retain relationship-based deposits to provide a stable and low-cost source of funding and liquidity.

Accordingly, the Company offers a wide variety of deposit products to meet the needs of its consumer and commercial customers.

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 $63.2 billion as of December 31, 2024 increased $7.1 billion or 13%, compared with the prior year, primarily due to growth in time and money market deposits.

Total deposits of $67.1 billion as of December 31, 2025 increased $3.9 billion or 6%, compared with the prior year, primarily due to growth in time and noninterest-bearing demand deposits.

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

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(1) Excludes deposits presented under International Branches.

(2) Deposits of our Hong Kong branch and China subsidiary, primarily a subset of Commercial Banking segment deposits.

(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.

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offices are insured by the FDIC for up to $250,000.

The deposits in the Company’s subsidiary bank in China and the branch in Hong Kong are insured by each jurisdiction’s deposit insurance authority for up to 500,000 RMB and 800,000 HKD, respectively.

Uninsured deposits represent the portion of deposit accounts that exceed the insurance limits of the FDIC and each foreign jurisdiction.

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Uninsured deposits, per regulatory requirements, represent the portion of deposit accounts in U.S.

offices that exceed the FDIC insurance limit as reported on Schedule RC-OM item 2 of the Bank’s Call Report.

offices that exceed the FDIC insurance limit as reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report.

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-OM item 2 of the Bank’s Call Report as of December 31, 2024 and 2023, after certain adjustments:

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 December 31, 2025 and 2024, after certain adjustments:

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

Uninsured deposits, per regulatory reporting requirements $ 32,767,680 $ 27,592,714

Uninsured deposits, per regulatory requirements (1)

$ 33,431,037 $ 32,767,680

Collateralized deposits (4,464,567) (4,781,377)

3 unchanged sentences

Uninsured deposits, excluding collateralized and affiliate deposits, ratio (a) / (b) 45 % 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 7 — MD&A — Results of Operations — Net Interest Income in this Form 10-K.

1 unchanged sentence

MD&A — Liquidity Risk Management in this Form 10-K.

Other Sources of Funding

The Company had $4.5 billion of BTFP borrowings outstanding as of December 31, 2023.

These borrowings were repaid upon maturity during the first quarter of 2024.

The Company had $3.5 billion of FHLB advances as of December 31, 2024, compared with no FHLB advances as of December 31, 2023.

FHLB advances as of December 31, 2024 had fixed and floating interest rates ranging from 3.87% to 4.61% with remaining maturities between 2 months and 2.0 years.

The Company’s long-term debt consists of junior subordinated debt, which qualifies as Tier 2 capital for regulatory capital purposes.

During the first quarter of 2024, the Company redeemed approximately $117 million of junior subordinated debt.

Refer to Note 10 — Short-Term Borrowings and Long-Term Debt to the Consolidated Financial Statements in this Form 10-K for additional information on the junior subordinated debt.

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.

Furthermore, the Company conducts capital stress tests as part of its capital planning process.

The stress tests enable the Company to assess the impact of adverse changes in the economy and interest rates on its capital base.

The Company’s stockholders’ equity increased $1.2 billion or 15% from $7.7 billion as of December 31, 2024 to $8.9 billion as of December 31, 2025.

This increase was primarily due to $1.3 billion of net income and $240 million of other comprehensive income, partially offset by $335 million of cash dividends declared and $134 million from open-market common stock repurchases and tax withheld in the form of stock repurchase on vested RSUs.

For other factors that contributed to the changes in stockholders’ equity, refer to Item 8.

Financial Statements — Consolidated Statement of Changes in Stockholders’ Equity in this Form 10-K.

On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to $300 million of East West common stock, which will remain valid until December 31, 2026.

The Company repurchased $115 million and $144 million of its common stock in 2025 and 2024, respectively.

The Company paid a cash dividend of $2.40 and $2.20 per share in 2025 and 2024, respectively.

In January 2026, the Company’s Board of Directors declared a first quarter 2026 cash dividend of $0.80 per share, which represents a 33%, or 20 cents per common share, increase from the previous quarterly cash dividend of $0.60 per common share.

The dividend was paid on February 17, 2026, to stockholders of record as of February 2, 2026.

Regulatory Capital and Ratios

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Business — Supervision and Regulation — Regulatory Capital Requirements and Regulatory Capital - Related Development in this Form 10-K for additional details.

The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses inherent in the Company’s relevant financial assets in accordance with ASU 2016-13.

The Company has elected the phase-in option provided by a final rule that delays an estimate of the current expected credit losses (“CECL”) effect on regulatory capital for two years and phases in the impact over three years.

The rule 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.

Accordingly, our capital ratios as of December 31, 2024 reflect a delay of 25% of the estimated impact of CECL on regulatory capital.

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

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10.9 % 10.0 % 10.4 % 9.8 % 4.0 % 4.0 % 5.0 %

(1) The CET1 capital and Tier 1 leverage well-capitalized requirements apply to the Bank only.

There is no requirement on CET1 capital ratio or Tier 1 leverage ratio for a well-capitalized bank holding company.

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

(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 December 31, 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 December 31, 2025 and 2024, the Company and the Bank continued to exceed all “well-capitalized” capital requirements and the required minimum capital requirements under the Basel III Capital Rules.

Total risk-weighted assets as of December 31, 2024 increased $1.3 billion to $54.9 billion from December 31, 2023, primarily due to growth across major loan portfolios.

Total risk-weighted assets increased $2.8 billion from December 31, 2024 to $57.8 billion as of December 31, 2025, primarily due to loan growth.

Risk Management

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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 also evaluates and reports the overall credit risk exposure to senior management and the ROC.

Reporting directly to the Board’s Audit Committee, the IAR function provides additional validation of support to the Company’s robust credit risk management culture by performing an independent and objective assessment of underwriting and documentation quality.

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.

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

(2) Excludes loans held-for-sale.

Criticized loans increased $195 million or 20%, to $1.2 billion from December 31, 2023, primarily driven by an increase in criticized CRE loans.

(2) Excludes loans HFS.

Criticized loans decreased by $32 million or 3%, to $1.1 billion from December 31, 2024, primarily driven by decreases in C&I and multifamily residential loans, partially offset by increases in CRE and construction and land loans.

Nonperforming Assets

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

Nonperforming assets may also include nonperforming loans HFS.

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

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C&I $ 52,244 $ 86,165 $ (33,921) (39) %

CRE 2,430 23,249 (20,819) (90) %

CRE 38,546 2,430 36,116 NM

Multifamily residential 292 4,572 (4,280) (94) %

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OREO, net 21,183 35,077 (13,894) (40) %

Nonperforming loans HFS 20,976 — 20,976 100 %

Total nonperforming assets $ 208,001 $ 194,095 $ 13,906 7 %

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Nonaccrual loans to loans held-for-investment 0.29 % 0.30 %

Allowance for loan losses to nonaccrual loans 441.49 % 650.06 %

ALLL to nonaccrual loans 488.28 % 441.49 %

NM — Not meaningful.

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.

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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 this Form 10-K.

Nonaccrual loans of $159 million as of December 31, 2024 increased $56 million or 55% from December 31, 2023, primarily driven by an increase in C&I nonaccrual loans.

Nonaccrual loans of $166 million as of December 31, 2025 increased $7 million or 4% from December 31, 2024, primarily driven by increases in CRE and construction and land due to additional loans being transferred to nonaccrual status, partially offset by a decrease in C&I nonaccrual loans due to charge offs and transfers to OREO.

As of December 31, 2025, $27 million or 16% of nonaccrual loans were less than 90 days delinquent.

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MD&A — Critical Accounting Estimates, Note 1 — Summary of Significant Accounting Policies and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K.

The following table presents an allocation of the allowance for loan losses by loan portfolio segments and unfunded credit commitments as of the periods indicated:

The following table presents the allowance for credit losses allocated by loan portfolio segments, debt securities and unfunded credit commitments as of the periods indicated:

($ in thousands) Allowance Allocation % of Loan Type to Total Loans Allowance Allocation % of Loan Type to Total Loans

Allowance for loan losses

C&I $ 475,613 33 % $ 384,319 32 %

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Total consumer 60,643 30 % 49,442 30 %

Total allowance for loan losses $ 702,052 100 % $ 668,743 100 %

Total ALLL $ 809,773 100 % $ 702,052 100 %

Allowance for debt securities $ 1,900 $ —

Allowance for unfunded credit commitments $ 48,690 $ 39,526

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Loans held-for-investment $ 56,878,172 $ 53,726,637

Allowance for loan losses to loans held-for-investment 1.31 % 1.28 %

ALLL to loans held-for-investment 1.42 % 1.31 %

The following table presents net charge-offs and the net charge-offs to average loans ratios based on the loan categories as of the periods indicated:

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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 will be monitored to provide timely detection of adverse liquidity situations and enable management to promptly respond.

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.

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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.

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 $67.1 billion as of December 31, 2025, compared with $63.2 billion as of December 31, 2024.

The Company’s loan-to-deposit ratio was 85% as of December 31, 2024, compared with 93% as of December 31, 2023.

In addition to deposits, the Company has access to various sources of wholesale financing, including borrowing capacity with the FHLB and 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.

The Company’s loan-to-deposit ratio was 85% as of both December 31, 2025 and 2024.

— MD&A — Balance Sheet Analysis — Deposits in this Form 10-K 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 FRB discount window, FRB Standing Repurchase Agreement Facility (“SRF”), and several master repurchase agreements with major brokerage companies to sustain an adequate liquid asset portfolio, meet daily cash demands and allow management flexibility to execute its business strategy.

However, general financial market and economic conditions could impact our access and cost of external funding.

Additionally, the Company’s access to capital markets is affected by the ratings received from various credit rating agencies.

Unencumbered loans and/or debt securities are pledged to the FHLB and the FRB discount window as collateral.

Sources of funding included $3.0 billion and $3.5 billion of FHLB advances as of December 31, 2025 and 2024, respectively.

As of December 31, 2025, the FHLB advances were comprised of an overnight advance of $250 million with an interest rate of 4.02% and $2.8 billion of term advances that had fixed and floating interest rates ranging from 3.87% to 4.01% and with remaining maturities of six days to one year.

The Company also held long-term debt of $32 million in the form of junior subordinated debt as of both December 31, 2025 and 2024, which qualifies as Tier 2 capital for regulatory capital purposes.

Refer to Note 10 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in this Form 10-K for additional information on the junior subordinated debt.

The Company has pledged loans and/or debt securities to the FHLB and the FRB discount window as collateral.

Additionally, effective in the third quarter of 2025, the Company prepositioned unpledged debt securities as collateral for overnight repurchase agreements at the FRB SRF.

The Company has established operational procedures to enable borrowing against these assets, including regular monitoring of the total pool of loans and debt securities eligible as collateral.

Eligibility of collateral is defined in guidelines from the FHLB and FRB and is subject to change at their discretion.

— MD&A — Balance Sheet Analysis — Deposits and Other Sources of Funding in this Form 10-K for further details related to the Company’s funding sources.

The Company operated below its established risk limits for liquidity measures as of December 31, 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 source of liquidity in the form of cash and cash equivalents and borrowing capacity with its eligible loans and debt securities as collateral.

The following table presents the Company’s total cash and cash equivalents and collateralized borrowing capacity as of December 31, 2024 and 2023:

The Company maintains its sources of liquidity in the form of cash and cash equivalents, unpledged and prepositioned debt securities, and secured borrowing capacity with eligible loans and debt securities pledged as collateral.

The following table presents the Company’s total available liquidity as of December 31, 2025 and 2024:

($ in thousands) December 31, 2025 December 31, 2024 $ %

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Interest-bearing deposits with banks 16,189 48,198 (32,009) (66) %

Collateralized borrowing capacity:

Unused secured borrowing capacity from:

FHLB 11,849,692 9,928,152 1,921,540 19 %

FRB 12,383,005 9,830,769 2,552,236 26 %

Unpledged available debt securities

13,235,104 12,383,005 852,099 7 %

Total $ 35,429,628 $ 28,817,779 $ 6,611,849 23 %

The Company’s cash and cash equivalents and collateralized borrowing capacity increased to $35.4 billion as of December 31, 2024, compared with $28.8 billion as of December 31, 2023.

The increase was primarily related to increases in unpledged available debt securities and available borrowing capacity at the FRB due to the repayment of BTFP borrowings.

This increase was partially offset by a decrease in available borrowing capacity at the FHLB, primarily due to the increase in FHLB advances.

Deposit growth during 2024 allowed the Company to grow its debt securities portfolio, which was a primary driver of the increase in unpledged available securities.

Unpledged and prepositioned securities

Unpledged securities

6,326,512 7,819,531 (1,493,019) (19) %

Securities prepositioned for FRB SRF (2)

4,581,604 — 4,581,604 NM

Total available liquidity

$ 40,197,240 $ 35,429,628 $ 4,767,612 13 %

NM — Not meaningful.

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

(2) The Company enrolled as an eligible counterparty with the FRB SRF in the third quarter of 2025.

The Company’s total available liquidity increased to $40.2 billion as of December 31, 2025, compared with $35.4 billion as of December 31, 2024.

The increase in borrowing capacity was primarily due to an increase in total securities available to be pledged or prepositioned and loans pledged, as well as a decrease in FHLB advances outstanding.

Cash Requirements.

In the ordinary course of business, the Company enters contractual obligations that require future cash payments, including funding for customer deposit withdrawals, repayments for short- and long-term borrowings and other cash commitments.

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 the following Notes to the Consolidated Financial Statements in this Form 10-K:

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• Note 9 — Deposits

• Note 10 — Short-Term Borrowings and Long-Term Debt

• Note 10 — Federal Home Loan Bank Advances and Long-Term Debt

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.

Because many of these commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements.

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 December 31, 2025 to have a material current or future impact on the Company’s financial conditions or results of operations.

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East West held $664 million and $395 million in cash and cash equivalents as of December 31, 2025 and 2024, respectively.

Management believes that East West has sufficient cash and cash equivalents to meet the projected cash obligations for the coming year.

Management believes that East West has sufficient sources of liquidity to meet the projected cash obligations for the coming year.

Liquidity Stress Testing.

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As of December 31, 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.

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In addition, the Company’s policies permit the use of derivative instruments to assist in managing interest rate risk.

We measure and monitor interest rate risk exposure through various risk management tools, which include a simulation model that performs interest rate sensitivity analyses under multiple interest rate scenarios against a baseline.

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.

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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.

In the third quarter of 2024, the Company transitioned its net interest income volatility simulations from a static to a dynamic balance sheet approach and adopted market forward rates instead of flat forward rates.

This change better reflects the interest rate risk on the Company’s financial statements.

Furthermore, the Company standardized its simulation scenarios by shifting from non-parallel to parallel shocks for both instantaneous and gradual net interest income simulations, as well as for economic value of equity (“EVE”) simulations.

This alignment with industry-standard scenario definitions is intended to enhance interpretability and comparability.

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.

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For the year ended December 31, 2025, the Company assumed a weighted-average beta of 56% for total deposits, an increase of approximately 1% from December 31, 2024.

This increase was primarily due to deposit beta assumption updates and deposit product mix changes.

This 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.

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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 in both rising and decreasing rate scenarios as of December 31, 2024.

This change reflects deposit product mix assumptions, which assume noninterest-bearing deposits decrease in higher interest rate environments and are replaced with term deposit products.

In the table above, the net interest income volatility expressed in relation to base-case net interest income decreased under the falling rate scenarios as of December 31, 2025, reflecting updated assumptions on deposit mix and a shift in balance sheet composition toward a higher proportion of fixed-rate assets.

The Company also models scenarios based on gradual shifts in interest rates and assesses the corresponding impacts.

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-200 Rate ramp (3.0) % (4.6) %

As of December 31, 2024, 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 December 31, 2024 , the Company designated interest rate contracts with a notional amount of $5.3 billion as cash flow hedges, which reduced net interest income volatility by approximately 1.30% of the base net interest income for every 100 bp change in interest rate .

A majority of the Company’s 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.

As of December 31, 2025, the Company’s net interest income profile remains asset-sensitive under both instantaneous parallel and gradual shifts in interest rates, with a higher proportion of interest-earning assets repricing in the near term, compared to interest-bearing liabilities.

This position is primarily driven by a significant volume of variable-rate loans indexed to Prime and Term Secured Overnight Financing Rate (“SOFR”).

A declining rate environment could negatively impact the net interest income.

However, this potential impact could be partially mitigated by several structural factors, including balance sheet growth and mix evolution, ongoing reinvestment of cash flows into assets at rates above legacy lower yielding instruments, and prevailing yield‑curve conditions.

To reduce volatility, the Company has designated $4.3 billion in notional value of interest rate contracts as cash flow hedges, which are estimated to mitigate net interest income variability by approximately 1.27% of base net interest income for every 100 basis point change in interest rates.

A portion of the Company’s interest-bearing deposit portfolio consists of non-maturity deposits that are not directly indexed to short-term rates but remain sensitive to rate changes.

The Company actively manages deposit pricing and employs quantitative models to evaluate and forecast deposit behavior under various interest rate scenarios.

Actual results may differ from modeled projections due to variations in earning asset growth and changes in deposit composition driven by customer preferences.

Modeled outcomes are highly dependent on behavioral assumptions, including deposit mix shifts and customer rate sensitivity.

Economic Value of Equity at Risk

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Hedging transactions may be implemented using a variety of derivative instruments such as swaps, forwards, options and collars.

The Company uses interest rate swaps to hedge the variability in interest received on certain floating-rate commercial loans and interest paid on certain floating-rate borrowings.

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 (“USD”) equivalent value of a designated monetary amount of the Company’s net investment in East West Bank (China) Limited.

Prior to entering any accounting hedge activity, the Company analyzes the costs and benefits of the hedge in comparison to alternative strategies.

dollar equivalent value of a designated monetary amount of the Company’s net investment in EWCN.

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 counterparty clearing houses.

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 in 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, primarily foreign currency denominated deposits offered to its customers.

The Company is subject to credit risk associated with the counterparties to derivative contracts.

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.

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.

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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 (“RPAs”).

Certain derivative contracts are required to be cleared through central counterparty clearing houses, to further mitigate counterparty credit risk, where variation margin is applied daily as settlement to the fair value of the derivative contracts.

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 December 31, 2024, the Company anticipates performance by all its counterparties and has not incurred any related credit losses.

The following table summarizes certain information on derivative instruments designated as accounting hedges and utilized by the Company in its management of interest rate and foreign currency risks as of December 31, 2024 and 2023.

The Company does not have active net investment hedges as of December 31, 2024:

As of December 31, 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 December 31, 2025 and 2024:

December 31, 2025

Weighted-Average

($ in thousands) Notional Amount

Fair Value Assets (Liabilities)

Floating Rate

($ in thousands) Notional Amount Fair Value Assets Fair Value Liabilities Fixed Rate Floating Rate (1)

Remaining Term (in months)

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Interest rate swaps - Receive fixed pay floating (2)

Interest rate swaps - Receive fixed pay floating -

Forward Starting 1,000,000 (2,054) 3.90 % N/A (2) 67.8

$ 4,000,000 $ 39,997 $ 139 5.66 % 5.71 % 28.6

Interest rate collars - Buy floor sell cap 250,000 — — Cap:

1 unchanged sentence

Total cash flow hedges $ 4,250,000 $ 39,997 $ 139

$ 5,250,000 $ (29,564)

December 31, 2024

Weighted-Average

($ in thousands) Notional Amount

Fair Value Assets (Liabilities)

Fixed Rate Floating Rate

($ in thousands) Notional Amount Fair Value Assets Fair Value Liabilities Fixed Rate Floating Rate (1)

Remaining Term (in months)

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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 32,101 3.90 % N/A (2) 79.8

Interest rate swaps - Receive fixed pay floating - Forward starting (2)

1,000,000 3,839 5,893 3.90 % N/A 67.8

Interest rate collars - Buy floor sell cap 250,000 — 216 Cap:

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

$ 5,250,000 $ 37,297

Net investment hedges

Derivative Contracts Hedging Net Investment in

East West Bank (China) Limited

Foreign exchange forwards

$ 81,480 $ 3,394 6.75 (3) 7.05 (4) 2.7

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

(2) The swaps are forward starting and not effective as of both December 31, 2024 and 2023.

(3) Represents the weighted average strike foreign exchange rate between Chinese Yuan (“CNY”) and USD.

(4) Represents the weighted average market foreign exchange rate between CNY and USD as of December 31, 2023.

(2) Forward starting swaps with a total notional value of $1 billion became effective during 2025.

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

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The Company’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Company’s financial assets measured at amortized cost, including loans and certain lending-related commitments.

The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of key credit risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life.

For additional information on these judgements and the Company’s policies and methodologies used to determine the allowance for credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Loan Losses and Unfunded Credit Commitments, and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K.

A critical judgement in the process is estimating the Company’s allowance for credit losses related to macroeconomic forecasts that are incorporated into quantitative methods.

As any one economic outlook is inherently uncertain, the Company utilizes a baseline and upside or downside scenarios which are applied based on a probability weighting, to better reflect management’s estimate of the expected credit losses given existing market conditions and the changes in the economic environment.

The allowance for credit losses involves significant judgment on various matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of key credit risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life.

For additional information on these judgments and the Company’s policies and methodologies used to determine the allowance for credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Loan and Lease Losses and Unfunded Credit Commitments, and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K.

A critical judgment in the process is estimating the Company’s allowance for credit losses related to macroeconomic forecasts that are incorporated into quantitative methods.

As any one economic outlook is inherently uncertain, the Company utilizes a baseline as well as upside and downside scenarios that are applied based on a probability weighting, to better reflect management’s estimate of the expected credit losses given existing market conditions and the changes in the economic environment.

Changes in the Company’s assumptions and economic forecasts could significantly affect its estimate of expected credit losses, which could potentially lead to significant changes in the estimate from one reporting period to the next.

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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.

The non-GAAP financial measures discussed in this Form 10-K are return on average TCE and tangible book value per share.

The non-GAAP financial measures discussed in this Form 10-K include but are not limited to ROATCE, tangible book value per share, and adjusted loan yield.

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.

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Net income (a) $ 1,325,188 $ 1,165,586

Amortization of core deposit intangibles — 1,763

Amortization of mortgage servicing assets 1,124 1,322

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Average goodwill (465,697) (465,697)

Average other intangible assets (2)

(5,953) (6,542)

Average mortgage servicing assets (4,684) (5,953)

Average tangible book value (non-GAAP) (d) $ 7,806,027 $ 6,843,524

ROE (a)/(c) 15.93 % 17.91 %

Return on average TCE (non-GAAP) (b)/(d) 17.05 % 19.35 %

(a)/(c) 16.01 % 15.93 %

ROATCE (non-GAAP) (b)/(d) 16.99 % 17.05 %

($ and shares in thousands, except per share data) 2025 2024

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Goodwill (465,697) (465,697)

Other intangible assets (2)

(5,234) (6,602)

Mortgage servicing assets (4,119) (5,234)

Tangible book value (non-GAAP) (b) $ 8,429,386 $ 7,252,123

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Tangible book value per share (non-GAAP) (b)/(c) $ 61.27 $ 52.39

(1) Applied statutory rate of 29.73% for 2024 and 29.56% for 2023.

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

There were no core deposit intangibles in 2024.

Year Ended December 31,

Average loan yield

Interest income on loans (d) $ 3,494,661 $ 3,490,979

Loan payoff discount accretion and interest recoveries (32,296) —

Adjusted interest income on loans (e) $ 3,462,365 $ 3,490,979

Average loans (f) $ 54,624,959 $ 52,368,780

Average loan yield (d)/(f) 6.40 % 6.67 %

Adjusted average loan yield (e)/(f) 6.34 % 6.67 %

(1) Applied blended statutory rate of 28.02% for 2025 and 29.73% for 2024.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis