What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-27 compared with 2025-02-28 · 521 added, 505 removed, 2158 unchanged (32% of the section changed)

15 unchanged sentences

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

10 — Short-Term Borrowings and Long-Term Debt

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

11 — Income Taxes

31 unchanged sentences

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for loan losses for loans evaluated on a collective pool basis

As discussed in Notes 1 and 6 to the consolidated financial statements, the Company’s allowance for loan losses (ALL) is established as management’s estimate of expected credit losses inherent in the Company’s lending activities.

As of December 31, 2024 the ALL was $702 million, which includes the ALL for commercial loans evaluated on a collective pool basis (the commercial collective ALL).

The ALL is the portion of the loan’s amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loan’s contractual life, adjusted for estimated prepayments.

Allowance for loan and lease losses for commercial loans evaluated on a collective pool basis

As discussed in Notes 1 and 6 to the consolidated financial statements, the Company’s allowance for loan and lease losses (“ALLL”) is established as management’s estimate of expected credit losses inherent in the Company’s lending activities.

As of December 31, 2025 the ALLL was $810 million, which includes the ALLL for commercial loans evaluated on a collective pool basis (the commercial collective ALLL).

The ALLL is the portion of the loan’s amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loan’s contractual life, adjusted for estimated prepayments.

The Company measured the expected credit losses on a collective pool basis when similar risk characteristics existed.

The December 31, 2024 commercial collective ALL included quantitative and qualitative components.

The Company developed and documented the commercial collective ALL methodology at the portfolio segment level.

The commercial collective ALL methodology used various models and estimation techniques based on the Company’s historical loss

experience, current borrower characteristics, which included internal risk ratings, current conditions, and reasonable and supportable macroeconomic forecasts.

The December 31, 2025 commercial collective ALLL included quantitative and qualitative components.

The Company developed and documented the commercial collective ALLL methodology at the portfolio segment level.

The commercial collective ALLL methodology used various models and estimation techniques based on the Company’s historical loss experience, current borrower

characteristics, which included internal risk ratings, current conditions, and reasonable and supportable macroeconomic forecasts.

The commercial loan portfolio is comprised of commercial and industrial (“C&I”) and commercial real estate (“CRE”), which also included multifamily residential, and construction and land loans.

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In order to estimate the life of a loan under both quantitative models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

The Company also considered qualitative factors in determining the commercial collective ALL, if these factors have not already been captured by the quantitative model.

We identified the December 31, 2024 commercial collective ALL as a critical audit matter.

The Company also considered qualitative factors in determining the commercial collective ALLL, if these factors have not already been captured by the quantitative model.

We identified the December 31, 2025 commercial collective ALLL as a critical audit matter.

A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment due to significant measurement uncertainty.

Specifically, the assessment encompassed the evaluation of the commercial collective ALL methodology, including an evaluation of the conceptual soundness and performance of the methods and models used to estimate (1) the quantitative component and its significant data elements and assumptions, which included portfolio segments, historic loss experience, reasonable and supportable forecast period, internal risk ratings, probability-weighted macroeconomic forecast scenarios, contractual term of the loan adjusted for estimated prepayments, and (2) the qualitative component.

Specifically, the assessment encompassed the evaluation of the commercial collective ALLL methodology, including an evaluation of the conceptual soundness and performance of the methods and models used to estimate (1) the quantitative component and its significant data elements and assumptions, which included portfolio segments, historic loss experience, reasonable and supportable forecast period, internal risk ratings, probability-weighted macroeconomic forecast scenarios, contractual term of the loan adjusted for estimated prepayments, and (2) the qualitative component.

In addition, auditor judgment was required to evaluate the sufficiency of audit evidence obtained.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the commercial collective ALL estimates, including controls over the:

• development of the commercial collective ALL methodology

We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s measurement of the commercial collective ALLL estimates, including controls over the:

• development of the commercial collective ALLL methodology

• continued use and appropriateness of changes made to the quantitative models

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• development of the qualitative component

• analysis of the commercial collective ALL results, trends, and ratios.

We evaluated the Company’s process to develop the commercial collective ALL estimates by testing the models, significant data elements and assumptions that the Company used, and considered the relevance and reliability of such models, data, factors, and assumptions.

We performed ratio and trend analysis over key ratios and peer comparison information relevant to the commercial collective ALL.

• analysis of the commercial collective ALLL results, trends, and ratios.

We evaluated the Company’s process to develop the commercial collective ALLL estimates by testing the models, significant data elements and assumptions that the Company used, and considered the relevance and reliability of such models, data, factors, and assumptions.

We performed ratio and trend analysis over key ratios and peer comparison information relevant to the commercial collective ALLL.

In addition, we involved credit risk professionals with specialized skills and knowledge, who assisted in:

• evaluating the Company’s commercial collective ALL methodology for compliance with U.S.

• evaluating the Company’s commercial collective ALLL methodology for compliance with U.S.

generally accepted accounting principles

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• determining whether the loan portfolio is pooled based on loans with similar risk characteristics by comparing to the Company’s business environment and relevant industry practices

• evaluating risk ratings for a selection of collectively evaluated commercial loans

• evaluating the conceptual soundness of the framework used to develop the qualitative factors and the effect of those factors on the commercial collective ALL compared with relevant credit risk factors and consistency with credit trends and identified limitations of the underlying quantitative models.

We also assessed the sufficiency of the audit evidence obtained related to the commercial collective ALL estimates by evaluating the:

• evaluating risk ratings for a selection of collectively evaluated loans

• evaluating the conceptual soundness of the framework used to develop the qualitative factors and the effect of those factors on the commercial collective ALLL compared with relevant credit risk factors and consistency with credit trends and identified limitations of the underlying quantitative models.

We also assessed the sufficiency of the audit evidence obtained related to the commercial collective ALLL estimates by evaluating the:

• cumulative results of audit procedures

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Loans held-for-sale 20,976 —

Loans held-for-investment (net of allowance for loan losses of $ 702,052 and $ 668,743 )

Loans held-for-investment (net of allowance for loan and lease losses (“ALLL”) of $ 809,773 and $ 702,052 )

56,068,399 53,024,585

9 unchanged sentences

Total deposits 67,082,701 63,175,023

Bank Term Funding Program (“BTFP”) borrowings — 4,500,000

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

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621,937 449,065 276,190

Assets purchased under resale agreements 11,254 20,164 29,767

Resale agreements 6,475 11,254 20,164

Restricted equity securities 11,242 10,104 4,062

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NONINTEREST INCOME

Deposit account fees 103,880 93,811 95,177

Lending fees 98,455 83,876 79,208

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

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

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

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

Customer derivative income 16,401 20,200 29,057

Net gains on sales of loans 44 3,634 6,411

Customer derivative income, net of mark-to-market adjustments 16,856 16,401 20,200

Net gains (losses) on AFS debt securities

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Net income $ 1,325,188 $ 1,165,586 $ 1,161,161

Other comprehensive income (loss), net of tax:

Net changes in unrealized gains (losses) on AFS debt securities 48,845 81,763 ( 508,799 )

Reclassification of unrealized losses on debt securities transferred from AFS to HTM — — ( 112,991 )

Amortization of unrealized losses on debt securities transferred from ASF to HTM 10,884 11,171 12,678

Net changes in unrealized (losses) gains on cash flow hedges

Other comprehensive income, net of tax:

Net changes in unrealized gains on AFS debt securities 178,328 48,845 81,763

Amortization of unrealized losses on debt securities transferred from AFS to HTM

10,592 10,884 11,171

Net changes in unrealized gains (losses) on cash flow hedges

48,996 ( 23,411 ) 52,155

Foreign currency translation adjustments 1,734 ( 982 ) ( 56 )

Other comprehensive income (loss) 35,336 145,033 ( 675,248 )

Other comprehensive income 239,650 35,336 145,033

COMPREHENSIVE INCOME $ 1,564,838 $ 1,200,922 $ 1,306,194

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BALANCE, DECEMBER 31, 2022 140,947,846 $ 1,936,557 $ 5,582,546 $ ( 768,862 ) $ ( 765,629 ) $ 5,984,612

Cumulative-effect of change in accounting principle (1)

— — ( 4,262 ) — — ( 4,262 )

Net income — — 1,161,161 — — 1,161,161

Other comprehensive loss — — — — ( 675,248 ) ( 675,248 )

Other comprehensive income — — — — 145,033 145,033

Issuance of common stock pursuant to various stock compensation plans and agreements 913,185 44,430 — — — 44,430

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BALANCE, DECEMBER 31, 2024 138,437,299 $ 2,030,882 $ 7,311,542 $ ( 1,034,110 ) $ ( 585,260 ) $ 7,723,054

Cumulative-effect of change in accounting principle (2)

— — ( 9,482 ) — — ( 9,482 )

Net income — — 1,325,188 — — 1,325,188

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BALANCE, DECEMBER 31, 2025 137,578,862 $ 2,111,486 $ 8,301,522 $ ( 1,168,196 ) $ ( 345,610 ) $ 8,899,202

(1) Represents the change in the Company’s allowance for loan losses as a result of the adoption of Accounting Standards Update (“ASU”) 2022-02 , Financial Instruments - Credit Losses (Topic 326):

(1) Represents the change in the Company’s ALLL as a result of the adoption of Accounting Standards Update (“ASU”) 2022-02 , Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and the Vintage Disclosures on January 1, 2023.

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Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method on January 1, 2024.

Refer to Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Annual Report on Form 10-K (“this Form 10-K”) for additional information.

See accompanying Notes to Consolidated Financial Statements.

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Provision for credit losses 160,000 174,000 125,000

Depreciation and amortization 198,447 163,460 159,851

Amortization of premiums (accretion of discount), net 13,891 10,723 56,703

Depreciation, amortization and accretion, net 213,164 212,338 174,183

Stock compensation costs 76,189 45,535 39,867

Deferred income tax benefit ( 7,775 ) ( 14,283 ) ( 49,139 )

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

Net (gains) losses on AFS debt securities ( 963 ) ( 2,069 ) 6,862

Impairment on other real estate owned (“OREO”) and other foreclosed assets 7,735 — 6,861

Net gains on sales of OREO and other foreclosed assets ( 460 ) ( 3,451 ) ( 3,042 )

Net losses (gains) on other real estate owned (“OREO”) write-downs and sales 10,275 7,275 ( 3,451 )

Loans held-for-sale:

( 2,881 ) ( 116 ) ( 447 )

Originations and purchases ( 4,105 ) ( 2,881 ) ( 116 )

Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale 4,102 3,020 —

Distributions received from equity method investees 5,645 11,282 7,586

Net change in accrued interest receivable and other assets ( 97,306 ) 63,743 ( 146,270 )

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Purchases ( 6,939,256 ) ( 7,599,454 ) ( 1,549,846 )

HTM debt securities:

Proceeds from repayments, maturities and redemptions 54,249 61,744 75,635

Purchases — — ( 50,000 )

Loans held-for-investment:

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Proceeds from sales of OREO and other foreclosed assets 36,122 33,055 3,721

Distributions received from equity method investees 23,598 23,774 18,221

Purchases of FHLB stock, net ( 84,079 ) — —

Proceeds from repayments and redemptions of HTM debt securities

62,832 54,249 61,744

Redemption (purchases) of FHLB stock, net 14,024 ( 84,079 ) —

Other investing activities, net 4,527 8,894 ( 88,262 )

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Extinguishment cost — — ( 3,872 )

Long-term debt and lease liabilities:

Repayment of junior subordinated debt and lease liabilities ( 117,437 ) ( 871 ) ( 943 )

Repayment of lease liabilities and junior subordinated debt ( 836 ) ( 117,437 ) ( 871 )

Common stock:

5 unchanged sentences

Effect of exchange rate changes on cash and cash equivalents 14,977 ( 8,232 ) ( 7,002 )

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 635,758 1,133,200 ( 431,151 )

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 1,062,603 ) 635,758 1,133,200

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 5,250,742 4,614,984 3,481,784

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Loans transferred from held-for-investment to held-for-sale $ 331,227 $ 659,322 $ 739,379

Securities transferred from AFS to HTM debt securities $ — $ — $ 3,010,003

Loans transferred to OREO or other foreclosed assets $ 33,513 $ 67,379 $ 11,141

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As of December 31, 2025, the Company operated i n over 110 locations in the United States (“U.S.”) and Asia.

In the U.S., the Bank’s corporate headquarters and main administrative offices are located in California, and its branches and offices are located in California, Texas, New York, Washington, Georgia, Massachusetts, Illinois, and Nevada.

In Asia, East West’s presence included full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, representative offices in Beijing, Chongqing, Guangzhou, Xiamen and Singapore, and administrative support offices in Beijing and Shanghai.

The Bank has a banking subsidiary based in China — East West Bank (China) Limited.

In the U.S., the Bank’s corporate headquarters and main administrative offices are located in California, and its branches are located in California, Texas, New York, Washington, Georgia, Massachusetts and Nevada.

In Asia, East West’s presence includes branches in China and Hong Kong, and representative offices in China and Singapore.

The Bank has a banking subsidiary based in China — East West Bank (China) Limited (“EWCN”).

Significant Accounting Policies

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The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a VIE.

Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations.

VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity.

For a VIE, a controlling financial interest is where the Company has the power to direct the activities of an entity that most significantly impact the entity’s economic performance and has an obligation to absorb losses or the right to receive benefits from the VIE.

If it is determined that the Company does not have a variable interest in the entity, no further analysis is required and the entity is not consolidated.

The Variable Interest Model applies to all legal entities, including corporations, partnerships, limited liability companies and trusts.

For an entity that does not meet the definition of a VIE, the entity is determined to be a voting interest entity.

The Company consolidates a voting interest entity if it can exert control over the financial and operating policies of an investee, which can occur if the Company has a more than 50% voting interest in the entity.

For unconsolidated voting interest entities or VIE, the Company uses the proportional amortization method (“PAM”), equity, cost or measurement alternative method based on the Company’s voting or economic interest.

For unconsolidated entities, the Company uses the proportional amortization method (“PAM”), equity, cost or measurement alternative method based on the Company’s voting or economic interest.

East West has one wholly-owned subsidiary that is a statutory business trust (the “Trust”).

In accordance with the guidance in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 810, Consolidation, the Trust has not been consolidated by the Company.

Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank (“FRB”) of San Francisco and other financial institutions, and federal funds sold with original maturities up to three months.

Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank (“FRB”) of San Francisco and other financial institutions, money market funds, and federal funds sold with original maturities up to three months.

Interest-Bearing Deposits with Banks — Interest-bearing deposits with banks include cash placed with other banks with original maturities greater than three months and less than one year.

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For details of the allowance for credit losses on debt securities, refer to the Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Debt Securities sections of this note.

Interest income, including any amortization of premium or accretion of discount, is included in debt securities of interest and dividend income in the Company’s Consolidated Statement of Income.

Interest income, including any amortization of premium or accretion of discount, is included in debt securities interest and dividend income in the Company’s Consolidated Statement of Income.

The Company recognizes realized gains and losses on the sale of AFS debt securities in earnings, using the specific identification method.

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Equity Securities — The Company’s equity securities include both marketable and non-marketable equity securities.

Marketable equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses due to changes in fair value;

and are included in Other investment income on the Consolidated Statement of Income.

Marketable equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses due to changes in fair value, and are included in Other investment income on the Consolidated Statement of Income.

Marketable equity securities include mutual fund investments, which are included in Affordable housing partnership, tax credit and CRA investments, net on the Consolidated Balance Sheet.

1 unchanged sentence

• Equity Method — When the Company has the ability to exercise significant influence over the investee.

• Proportional Amortization Method — For qualifying tax credit investments, the Company amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received, and recognizes the amortization in Income tax expense on the Consolidated Statement of Income.

• Cost Method — The cost method is applied to restricted equity securities held for membership and regulatory purposes, such as FRB of San Francisco and FHLB stock.

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Subject to periodic review under the Company’s evaluation process, including asset/liability and credit risk management, the Company may transfer certain loans from held-for-investment to held-for-sale measured at lower of cost or fair value.

Any write-downs in the carrying amount of the loan at the date of transfer are recorded as charge-offs to allowance for loan losses.

Any write-downs in the carrying amount of the loan at the date of transfer are recorded as charge-offs to the ALLL.

Loan origination fees on loans held-for-sale, net of certain costs in processing and closing the loans, are deferred until the time of sale and are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale.

A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income.

A valuation allowance is established if the fair value of such loans is lower than their cost.

If the loan or a portion of the loan cannot be sold, it is subsequently transferred back to the loans held-for-investment portfolio from the loans held-for-sale portfolio at the lower of cost or fair value on the transfer date.

Loans Held-for-Investment — At the time of commitment to originate or purchase a loan, the loan is determined to be held-for-investment if it is the Company’s intent to hold the loan to maturity or for the foreseeable future.

Loans held-for-investment are stated at their outstanding principal, reduced by an allowance for loan losses and net of deferred loan fees or costs, or unearned fees on originated loans, net of unamortized premiums or unaccreted discounts on purchased loans.

Loans held-for-investment are stated at their outstanding principal, reduced by an ALLL and net of deferred loan fees or costs, or unearned fees on originated loans, net of unamortized premiums or unaccreted discounts from purchased loans.

Nonrefundable fees and direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances.

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and (2) modifications to the terms of the original loan are more than minor.

If either condition is not met, the modification is accounted for as a continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate.

A modification made to borrowers experiencing financial difficulty may vary by program and by borrower-specific characteristics, and may include rate reductions, principal forgiveness, term extensions, and payment delays, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral.

If either condition is not met, the modification is accounted for as the continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate.

A modification may vary by program and by borrower-specific characteristics, and may include rate reductions, principal forgiveness, term extensions, and payment delays, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral.

The Company applies the same credit loss methodology it uses for similar loans that were not modified.

Troubled Debt Restructurings — Prior to the adoption of ASU 2022-02, a loan was generally classified as a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that the Company would not otherwise consider.

The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, a term extension, a payment forbearance and other actions.

Loans with contractual terms that were modified as a TDR and were current at the time of restructuring may remain on accrual status if there was demonstrated performance prior to the restructuring and payment in full under the restructured terms was expected.

Otherwise, these loans were placed on nonaccrual status and were reported as nonperforming, until the borrower demonstrated a sustained period of performance, generally six months, and the ability to repay the loan according to the contractual terms.

If accruing TDRs ceased to perform in accordance with their modified contractual terms, they were placed on nonaccrual status and reported as nonperforming TDRs.

TDRs were included in the quarterly allowance for credit losses valuation process.

Allowance for Loan Losses — The allowance for loan losses is established as management’s estimate of expected credit losses inherent in the Company’s lending activities;

ASC 310-10-50-42 requires disclosures of modification made to borrowers experiencing financial difficulty in the forms of principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions or a combination of these types of modifications.

Allowance for Loan and Lease Losses — The ALLL is established as management’s estimate of expected credit losses inherent in the Company’s lending activities;

it is increased by the provision for credit losses and decreased by net charge-offs.

The allowance for loan losses is evaluated quarterly by management based on regular reviews of the collectability of the Company’s loans, and more often if deemed necessary.

The Company develops and documents the allowance for loan losses methodology at the portfolio segment level.

The ALLL is evaluated quarterly by management based on regular reviews of the collectability of the Company’s loans, and more often if deemed necessary.

The Company develops and documents the ALLL methodology at the portfolio segment level.

The commercial loan portfolio is comprised of commercial and industrial (“C&I”), commercial real estate (“CRE”), multifamily residential, and construction and land loans;

and the consumer loan portfolio is comprised of single-family residential, home equity lines of credit (“HELOCs”), and other consumer loans.

The allowance for loan losses represents the portion of a loan’s amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loan’s contractual life, adjusted for prepayments.

The ALLL represents the portion of a loan’s amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loan’s contractual life, adjusted for prepayments.

The Company measures the expected loan losses on a collective pool basis when similar risk characteristics exist.

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The Company evaluates loans for expected credit losses on an individual basis if, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement.

When the loan is deemed uncollectible, it is the Company’s policy to charge off the uncollectible amount against the allowance for loan losses.

When the loan is deemed uncollectible, it is the Company’s policy to charge off the uncollectible amount against the ALLL.

The amortized cost of loans held-for-investment excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet.

The Company has made an accounting policy election to not recognize an allowance for loan losses for accrued interest receivables as the Company reverses accrued interest if a loan is on nonaccrual status.

The allowance for loan losses is reported separately on the Consolidated Balance Sheet and the Provision for credit losses is reported on the Consolidated Statement of Income.

The Company has made an accounting policy election to not recognize an ALLL for accrued interest receivables as the Company reverses accrued interest if a loan is on nonaccrual status.

The ALLL is reported on the Consolidated Balance Sheet and the Provision for credit losses is reported on the Consolidated Statement of Income.

Allowance for Unfunded Credit Commitments — The allowance for unfunded credit commitments includes reserves provided for unfunded loan commitments, letters of credit, standby letters of credit (“SBLCs”) and recourse obligations for loans sold.

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The non-credit discount or premium will be accreted to interest income based on the effective interest rate on the PCD assets determined after the gross-up for the allowance for credit losses.

At the acquisition date, the initial allowance for credit losses determined on a collective basis is allocated to individual assets in accordance with ASC 326-20-30-13.

Subsequent changes in the allowance for credit losses on PCD assets are recognized as Provision for credit losses (or reversal of provision for credit losses) on the Consolidated Statement of Income.

Premises and Equipment, Net — The Company’s premises and equipment are stated at cost less accumulated depreciation and amortization.

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Buildings 25 years

Furniture, fixtures and equipment

Leasehold improvements Term of lease or useful life, whichever is shorter

Building improvements 15 years

Furniture, fixtures and equipment, including computer equipment 3 to 7 years

Leasehold improvements Remaining term of lease or useful life, whichever is shorter

The Company reviews its long-lived assets for impairment annually, or when events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable.

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Goodwill — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in an acquisition.

Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur or circumstances change that indicate a potential impairment at the reporting unit level.

Goodwill is tested for impairment on an annual basis as of December 31, or more frequently if an event occurs or circumstances change that indicate a potential impairment at the reporting unit level.

The Company assesses goodwill for impairment at each operating segment level.

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The changes in the fair value of the hedging instrument are recorded in the same income statement line item as the hedged item’s expense or income is recorded.

For example, fair value changes of hedged on borrowings are recorded within Interest expense , and fair value changes of hedges on loan assets are recorded as interest income within Interest and dividend income on the Consolidated Statements of Income.

For example, fair value changes of hedges on borrowings are recorded within Interest expense , and fair value changes of hedges on loan assets are recorded as interest income within Interest and dividend income on the Consolidated Statements of Income.

To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not sought), a derivative must be highly effective in offsetting the risk designated as being hedged at the inception and on an ongoing basis.

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These derivative contracts are recorded at fair value with changes in fair value recorded in Customer derivative income or Foreign exchange income on the Consolidated Statement of Income.

From time to time, the Company obtains equity warrants to purchase preferred and/or common stock of public or private companies it provides loans to as part of the Company’s loan origination process.

Separately, the Company granted performance-based restricted stock units (“RSUs”) as part of its consideration for its investment in Rayliant Global Advisors Limited (“Rayliant”) during the third quarter of 2023.

The vesting of these performance-based RSUs is contingent on Rayliant meeting certain financial performance targets during the future performance period.

These equity contracts are accounted for as derivatives and recorded at fair value in Other assets or Accrued expenses and other liabilities on the Consolidated Balance Sheet with changes in fair value recorded in Lending fees , for equity warrants related to the loan origination process , or Other investment income, for performance-based RSU’s related to Rayliant, on the Consolidated Statement of Income.

As part of its loan origination process, the Company may periodically receive equity warrants to purchase preferred and/or common stock of the public or private companies to which it provides loans.

Separately, the Company granted performance-based restricted stock units (“RSUs”) as part of its consideration for an investment made during the third quarter of 2023.

The vesting of these performance-based RSUs is contingent on the investee meeting certain financial performance targets during the future performance period.

The Company is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected.

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Fair value measurements are based on the exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs.

However, for certain instruments, the Company must utilize unobservable inputs in determining fair value due to the lack of observable inputs in the market, which requires greater judgment in the measurement of fair value.

All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy that assigns the highest priority to quoted prices in active markets and the lowest priority to prices derived from data lacking transparency.

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Market conditions subsequent to the grant date have no impact on the amount of compensation expense.

Compensation cost is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award.

Excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statement of Income.

Compensation cost is amortized on a straight-line basis over the requisite service period for the entire award, reduced by expected forfeitures.

Effective third quarter 2025, compensation cost related to awards granted to employees who meet certain age plus years-of-service requirements (“retirement-eligible employees”) is accrued over the service period required to earn the award prior to the grant date, in accordance with ASC 718-10-55-108.

This change in the timing of recognition for awards that were granted to or are expected to be granted to retirement-eligible employees resulted in $ 31 million of additional compensation expense in 2025.

Forfeitures are estimated at the time of grant and are updated quarterly.

As stock-based compensation expense is estimated based on awards ultimately expected to vest, it is reduced by the expense related to awards expected to be forfeited.

If the estimated forfeitures are revised, a cumulative effect of changes in estimated forfeitures for the current and prior periods is recognized in compensation expense in the period of change.

Refer to Note 13 — Stock Compensation Plans on the Consolidated Financial Statements in this Form 10-K for additional information.

Excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statement of Income.

Refer to Note 13 — Stock Compensation Plans to the Consolidated Financial Statements in this Form 10-K for additional information.

Revenue from Contracts with Customers — The Company recognizes two primary types of revenue on its Consolidated Statement of Income:

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• Deposit Service Charges and Related Fee Income — The Company offers a range of deposit products to individuals and businesses, which includes savings, money market, checking and time deposit accounts.

The deposit account services include ongoing account maintenance, as well as certain optional services such as various in-branch services, automated teller machine/debit card usage, wire transfer services or check orders.

In addition, treasury management and business account analysis services are offered to commercial deposit customers.

In addition to ongoing maintenance charges, treasury management and business account analysis services are offered to commercial deposit customers.

Other optional services such as various in-branch services, automated teller machine/debit card usage, wire transfer services or check orders are also offered.

The monthly account fees may vary with the amount of average monthly deposit balances maintained, or the Company may charge a fixed monthly account maintenance fee if certain average balances are not maintained.

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Business analysis accounts that are assessed fees in excess of earnings credits received are typically charged at the end of each month, after all transactions are known and the credits are calculated.

Deposit service charges and related fee income are recognized in all operating segments and included in Deposit account fees on the Consolidated Statement of Income.

• Card Income — Card income consists of merchant referral fees and interchange income.

For merchant referral fees, the Company provides marketing and referral services to acquiring banks for merchant card processing services and earns variable referral fees based on transaction activities.

The Company satisfies its performance obligation over time as the Company identifies, solicits, and refers business customers who are provided such services.

The Company receives monthly fees net of consideration it pays to the acquiring bank performing the merchant card processing services.

The Company recognizes revenue on a monthly basis when the uncertainty associated with the variable referral fees is resolved after the Company receives monthly statements from the acquiring bank.

For interchange income, the Company, as a card issuer, has a stand ready performance obligation to authorize, clear, and settle card transactions.

The Company earns or pays interchange fees, which are percentage-based on each transaction, and based on rates published by the corresponding payment network for transactions processed using their network.

The Company measures its progress toward the satisfaction of its performance obligation over time as services are rendered, and the Company provides continuous access to this service and settles transactions as its customer or the payment network requires.

Interchange income is presented net of direct costs paid to the customer and entities in their distribution chain, which are transaction-based expenses such as rewards program expenses and certain network costs.

Revenue is recognized when the net profit is determined by the payment networks at the end of each day.

Card income is recognized in consumer and business banking, and commercial banking segments and included in Deposit account fees on the Consolidated Statement of Income.

Deposit service charges and related fee income are recognized in all operating segments and included in Commercial and consumer d eposit-related account fees on the Consolidated Statement of Income.

• Wealth Management Fees — The Company provides investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies and risk management strategies.

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Wealth management fees are recognized in both consumer and business banking, and commercial banking segments.

• Card Income — Card income primarily consists of merchant referral fees where the Company provides marketing and referral services to acquiring banks for merchant card processing services and earns variable referral fees based on transaction activities.

The Company satisfies its performance obligation over time as the Company identifies, solicits, and refers business customers who are provided such services.

Card income is recognized in the consumer and business banking, and commercial banking segments and is included in Commercial and consumer deposit-related fees on the Consolidated Statement of Income.

Income Taxes — The Company files consolidated federal income tax returns, foreign tax returns, and various combined and separate company state tax returns.

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Income tax liabilities (receivables) represent the estimated amounts due to (due from) the various taxing jurisdictions where the Company has established a tax presence and are reported in Accrued expenses and other liabilities or Other assets on the Consolidated Balance Sheets.

Deferred tax expense results from changes in deferred tax assets and liabilities between period, and is determined using the balance sheet method.

Deferred tax expense results from changes in deferred tax assets and liabilities between periods, and is determined using the balance sheet method.

Under the balance sheet method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities.

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Upon the adoption of ASU 2023-02 on January 1, 2024, the Company also began applying the PAM to new markets, historic, production and renewable energy tax credit investments.

Under PAM, the Company amortizes the initial cost of the investment in proportion to the income tax credits and other income tax benefits received, and recognizes the amortization in Income tax expense on the Consolidated Statement of Income.

The Company also holds investments in other tax credit investments using either equity method or the measurement alternative method of accounting.

These tax credits are recognized on the Consolidated Financial Statements to the extent they are utilized on the Company’s income tax returns in the year the credit arises under the flow through method of accounting.

Earnings Per Share — Basic EPS is computed by dividing net income by the weighted-average number of common shares outstanding during each period.

Diluted EPS is computed by taking net income, adjusted to remove any fair value changes related to liability-classified contingent equity contracts, divided by the weighted-average number of common shares outstanding during each period, plus any incremental dilutive common share equivalents calculated for outstanding time- and performance-based RSUs and contingently issuable shares using the treasury stock method.

Foreign Currency Translation — The Company’s foreign subsidiary in China, East West Bank (China) Limited’s functional currency is in Chinese Renminbi (“RMB”).

As a result, assets and liabilities of East West Bank (China) Limited are translated, for the consolidation purpose, from its functional currency into the reporting currency U.S.

dollar (“USD”) using period-end spot foreign exchange rates.

Revenues and expenses of East West Bank (China) Limited are translated, for the purpose of consolidation, from its functional currency into the reporting currency USD at the transaction date foreign exchange rates.

The effects of those translation adjustments are reported in the Foreign currency translation adjustments account within Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, net of any related hedged effects.

From time to time, the Company purchases tax credits.

The purchased credit is either recorded as an adjustment to income taxes refundable (payable) or as a deferred tax asset, or if the purchased credit is expected to be carried forward to be utilized on future income tax returns, the difference between the purchase price, including direct costs to acquire the credit, and the purchased tax credit is recognized as a deferred credit.

The deferred credit is recognized in income tax expense in proportion to the reversal of the associated deferred tax asset.

Earnings Per Share — Basic EPS is computed by dividing net income by the weighted-average number of outstanding common shares.

Outstanding common shares include contingently issuable shares when the contingent condition has been satisfied.

Employee share-based payment awards in the form of shares that vest when an employee retires or become retirement-eligible are treated as contingently issuable shares.

Diluted EPS is computed by taking net income, adjusted for fair value changes of liability-classified equity contracts that are share-settled, divided by the weighted-average number of common shares outstanding during each period, plus any incremental dilutive common share equivalents calculated for outstanding time- and performance-based RSUs and contingently issuable shares computed using the treasury stock method.

Foreign Currency Translation — When the functional currency of a foreign operation differs from the Company’s reporting currency, the U.S.

dollar (“USD”), the assets and liabilities of the foreign operations are translated, for consolidation purposes, from the functional currency to the Company’s reporting currency using period-end spot foreign exchange rates.

Revenues and expenses of the foreign operations are translated, for the purpose of consolidation, from its functional currency into the reporting currency USD at the transaction date foreign exchange rates.

The effects of these translation adjustments are reported in the Foreign currency translation adjustments account within Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, net of any related hedged effects.

For transactions that are denominated in a currency other than the functional currency, including transactions denominated in the local currencies of foreign operations that use the USD as their functional currency, the effects of changes in exchange rates are reported in Foreign exchange income on the Consolidated Statement of Income.

Accounting Pronouncements Adopted in 2024

Standard Required Date of Adoption Description Effect on Financial Statements

ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323):

Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

January 1, 2024 ASU 2023-02 expands the scope of the PAM to equity tax credit investment programs if certain conditions are met.

Previously, the PAM could only be used for investments in low-income housing tax credit structures.

Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the PAM to all equity investments meeting the criteria in ASC 323-740-25-1.

The amendments in this guidance must be applied on a modified retrospective or a retrospective basis.

The Company adopted ASU 2023-02 on January 1, 2024, for all tax credit investments under a modified retrospective basis.

The impact of the adoption decreased opening retained earnings on January 1, 2024 by $ 9 million.

Accounting Pronouncements Adopted in 2024 (continued)

Standard Required Date of Adoption Description Effect on Financial Statements

2023-07, Segment Reporting (Topic 280) :

Improvements to Reportable Segment Disclosures

December 31, 2024

ASU 2023-07 expands the disclosure requirements for reportable segments of public entities by adding the following disclosure requirements:

• Requires, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss.

• Requires, on an annual and interim basis, amount and composition of other segment items.

This amount reconciles segment revenues, less the significant segment expenses, to the reported measure of segment profit or loss.

• Expands the current interim disclosure requirements to require all existing annual disclosures about a reportable segment’s profit or loss and assets also be made on an interim basis.

• Clarifies that if a CODM uses more than one measure of segment profit or loss, then the entity may disclose one or more measures, but at least one measure should be that which is most consistent with GAAP measurement principles.

• Requires annual disclosure of the title and position of the CODM as well as explanation of how the CODM uses the reported measures in assessing segment performance and allocating resources.

The Company adopted ASU 2023-07 on December 31, 2024.

The amendments have been applied retrospectively to all prior periods presented.

The following standards were adopted on January 1, 2024, but they did not have a material impact on the Company’s Consolidated Financial Statements:

• ASU 2023-01, Leases (Topic 842):

Common Control Arrangements

• ASU 2022-03, Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

Recent Accounting Pronouncements Yet to be Adopted

Accounting Pronouncement Adopted in 2025

Standard Required Date of Adoption Description Effect on Financial Statements

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Early adoption is permitted.

ASU 2023-09 amends the disclosure requirements for income taxes, including the requirement for further disaggregation of the income tax rate reconciliation and income taxes paid disclosures.

The amendments in this guidance must be applied prospectively, with the option to apply retrospectively.

ASU 2023-09 amends the disclosure requirements for income tax rate reconciliation and income taxes paid.

The guidance requires public business entities to provide on an annual basis:

• A reconciliation of statutory tax rate to effective tax rate, using both percentages and reporting currency amounts, into specific categories with reconciling items at or above 5% of the statutory federal income rate.

• The amount of income taxes paid (net of refunds) disaggregated by federal, state and foreign taxes, with further disaggregation by individual jurisdictions that are equal to 5% or more of income taxes paid.

• Income (or loss) before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state and foreign.

The Company adopted ASU 2023-09 on December 31, 2025, retrospectively by providing the revised disclosures for all periods presented.

Recent Accounting Pronouncements Yet to be Adopted

Standard Required Date of Adoption Description Effect on Financial Statements

2025-09, Derivatives and Hedging (Topic 815) :

Hedge Accounting Improvements

January 1, 2027

Early adoption is permitted.

ASU 2025-09 addresses five specific matters:

Broadens the set of hedged risk that may be combined within a group of individual forecasted transactions in a cash flow hedge.

Enables entities to apply cash flow hedge accounting on “choose-your-rate” debt.

Broadens situations where hedge accounting can be applied to forecasted purchases and sales of nonfinancial assets.

Removes the requirement to perform net written option assessment for a compound derivative when it is designated as a hedging instrument.

In the case of a dual hedge where a foreign- currency-denominated debt instrument is designated as the hedging instrument in a net investment hedge and a hedged item in a fair value of interest rate risk, the ASU requires the debt instruments’ fair value-hedge basis adjustment be excluded when performing the net investment hedge effectiveness assessment.

This guidance must be applied prospectively for all hedging relationships.

The Company may elect to adopt this ASU amendments for hedging relationships as of the adoption date.

The Company is currently evaluating the impact of this guidance and does not expect adoption to have a material impact on the Company’s Consolidated Financial Statements.

Recent Accounting Pronouncements Yet to be Adopted (Continued)

Standard Required Date of Adoption Description Effect on Financial Statements

2025-08, Financial Instruments—Credit Losses (Topic 326)

January 1, 2027

Early adoption is permitted.

ASU 2025-08 broadens the population of financial assets that are within scope of the gross up approach under ASC 326 to include purchased seasoned loans which are defined as:

• Non-PCD loans that are obtained in a business combination.

• Non-PCD loans that are (1) obtained in an asset acquisition or upon consolidation of a VIE that is not a business and (2) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination.

The guidance introduces an accounting policy election to use the amortized cost basis of the asset rather than the discounted cash flow analysis to subsequently measure the credit losses on purchased seasoned loans.

The new guidance is not applicable to credit card loans, ASC 606 receivables, or debt securities.

The guidance must be applied prospectively.

The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.

2024-03, Income Statement —Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses

D isaggregation of Income Statement Expenses

December 31, 2027

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The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.

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

• ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement

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

Note 2 — Fair Value Measurement and Fair Value of Financial Instruments

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These assets and liabilities are predominantly recorded at fair value on a recurring basis.

From time to time, certain assets and liabilities are measured at fair value on a nonrecurring basis;

At times, certain assets and liabilities are measured at fair value on a nonrecurring basis;

that is, they are subject to fair value adjustments only as required through the application of an accounting method such as lower of cost or fair value or write-down of individual assets.

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The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments within the fair value hierarchy.

Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by independent external pricing service providers who have experience in valuing these securities or by taking the average quoted market prices obtained from independent external brokers.

Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by third-party pricing service providers, including brokers who have experience in valuing these securities.

The valuations provided by the third-party pricing service providers are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, prepayment expectations and reference data obtained from market research publications.

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The valuations provided by the brokers incorporate information from their trading desks, research and other market data.

On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and the financial instruments are properly classified in the fair value hierarchy.

On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and that the financial instruments are properly classified in the fair value hierarchy.

To perform this validation, the Company evaluates the fair values of securities by comparing the fair values provided by the third-party pricing service providers to prices from other available independent sources for the same securities.

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Equity Securities — Equity securities consist of mutual funds and exchange-traded equity securities.

The Company invested in these mutual funds for CRA purposes.

The Company invests in these mutual funds for CRA purposes.

The Company uses net asset value (“NAV”) information to determine the fair value of these equity securities.

When NAV is available periodically and the equity securities can be put back to the transfer agents at the publicly available NAV, the fair value of the equity securities is classified as Level 1.

When NAV is available periodically and the equity securities can be redeemed at the publicly available NAV, the fair value of the equity securities is classified as Level 1.

When NAV is available periodically, but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is classified as Level 2.

Exchange-traded equity securities are measured based on quoted prices on an active exchange market, and classified as Level 1.

Effective January 24, 2024, all of the outstanding shares of Visa B common stock (“Visa B shares”) were redenominated to Visa Class B-1 common stock (“Visa B-1 shares”).

On April 8, 2024, Visa commenced an initial exchange offer for any and all outstanding Visa B-1 shares.

In exchange for the Company’s 2,266 Visa B-1 shares, the Company received 1,133 Visa Class B-2 common stock (“Visa B-2 shares”) and 449 Visa Class C common stock (“Visa C shares”).

The Visa B-2 shares remain subject to transfer restrictions and will continue to be held at cost.

As the Visa C shares are convertible into Visa’s publicly traded Class A common stock (“Visa A shares”), the Company recognized the Visa C shares at fair value of $ 568 thousand based on the closing price of the Visa A shares as of December 31, 2024.

Interest Rate Contracts — Interest rate contracts consist of interest rate swaps and options.

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Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign exchange contracts is classified as Level 2.

In addition, the Bank managed its foreign currency exposure in the net investment in its China subsidiary, East West Bank (China) Limited, a non-USD functional currency subsidiary, with foreign currency non-deliverable forward contracts.

In addition, the Bank managed its foreign currency exposure in the net investment in its China subsidiary, EWCN, a non-USD functional currency subsidiary, with foreign currency non-deliverable forward contracts.

These foreign currency non-deliverable forward contracts were designated as net investment hedges.

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Credit Contracts — Credit contracts utilized by the Company are comprised of credit risk participation agreements (“RPAs”) between the Company and institutional counterparties.

The fair value of the RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure.

Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities.

Due to the observable nature of all other significant inputs used in deriving the estimated fair value, credit contracts are classified as Level 2.

Equity Contracts — Equity contracts consist of warrants to purchase common or preferred stock of public and/or private companies, and any liability-classified contingently issuable shares of the Company.

Due to the observable nature of the majority of significant inputs used in deriving the estimated fair value, credit contracts are classified as Level 2.

Equity Contracts — Equity contracts consist of warrants to purchase private company common or preferred stock, and any liability-classified contingently issuable shares of the Company.

The fair value of the warrants is based on the Black-Scholes option pricing model.

For warrants from public companies, the model uses the underlying stock price, stated strike price, warrant expiration date, risk-free interest rate based on a duration-matched U.S.

Treasury rate, and market-observable company-specific equity volatility as inputs to value the warrants.

Due to the observable nature of the inputs used in deriving the estimated fair value, warrants from public companies are classified as Level 2.

For warrants from private companies, the model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S.

The model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S.

Treasury rate and equity volatility.

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On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the equity volatility and liquidity discount assumptions is performed.

In connection with the Company’s acquisition of a 49.99 % equity interest in Rayliant during the third quarter of 2023, the Company granted 349,138 performance-based RSUs as part of its consideration, in addition to $ 95 million in cash.

The vesting of these equity contracts on September 1, 2028, is contingent on Rayliant meeting certain financial performance targets during the performance period.

The fair value of liability-classified equity contracts varies based on the operating revenue and operating EBITDA of Rayliant to be achieved during the future performance period, and these performance-based RSUs are expected to vest into a variable number of the Company’s common stock, ranging from 20 % to 200 % of the target performance-based RSUs granted.

Due to the unobservable nature of the input assumptions, these equity contracts are classified as Level 3.

In connection with the Company’s acquisition of a 49.99 % equity interest in an investee during the third quarter of 2023, the Company granted 349 thousand performance-based RSUs as part of its consideration, in addition to $ 95 million in cash.

The vesting of these equity contracts on September 1, 2028, is contingent on the investee meeting certain financial performance targets during the performance period.

The fair value of liability-classified equity contracts varies based on the operating revenue and measure of operating profit of the investee to be achieved during the future performance period, as well as the Company’s stock price.

These performance-based RSUs are expected to vest into a variable number of the Company’s common stock, ranging from 20 % to 200 % of the target performance-based RSUs granted.

Due to the use of significant unobservable inputs in their valuation, these equity contracts are classified as Level 3.

For additional information on the equity contracts, refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K.

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Asset-backed securities — 31,389 — 31,389

Collateralized loan obligations (“CLOs”) — 44,493 — 44,493

Total AFS debt securities $ 993,913 $ 12,218,307 $ — $ 13,212,220

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Equity securities $ 630 $ — $ — $ 630

$ 568 $ — $ — $ 568

Total other assets $ 630 $ — $ — $ 630

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Net derivative liabilities $ — $ 270,599 $ 13,734 $ 284,333

Refer to footnotes on the following page.

Refer to table footnotes on the following page.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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Asset-backed securities — 34,715 — 34,715

CLOs — 612,861 — 612,861

Collateralized loan obligations (“CLOs”)

— 44,493 — 44,493

Total AFS debt securities $ 638,265 $ 10,208,546 $ — $ 10,846,811

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Total affordable housing partnership, tax credit and CRA investments, net $ 20,817 $ 4,204 $ — $ 25,021

Other assets:

Equity securities $ 568 $ — $ — $ 568

Total other assets $ 568 $ — $ — $ 568

Derivative assets:

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Foreign exchange contracts — 71,254 — 71,254

Equity contract (4)

Equity contracts (3)

— — 15,119 15,119

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(1) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $ 9.6 billion and $ 7.2 billion of fair value as of December 31, 2025 and 2024, respectively.

(2) Consists of exchange-traded equity securities.

For additional information, see Assets and Liabilities Measured at Fair Value on a Recurring Basis — Equity Securities in Note 2 — Fair Value Measurement and Fair Value of Financial Instruments in this Form 10-K.

(2) Represents the balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements.

See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information.

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

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

For the years ended December 31, 2025, 2024 and 2023, Level 3 fair value measurements that were measured on a recurring basis consisted of warrant equity contracts issued by private companies and liability-classified contingently issuable shares of the Company.

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Beginning balance $ 239 $ 336 $ 323

Total (losses) gains included in earnings (1)

Total losses included in earnings (1)

( 156 ) ( 97 ) ( 79 )

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Beginning balance $ 15,119 $ 15,119 $ —

Total gains included in earnings (4)

( 1,385 ) — —

Issuances — — 15,119

Ending balance $ 13,734 $ 15,119 $ 15,119

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

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

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

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

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

(4) Included in Other investment income on the Consolidated Statement of Income.

The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of December 31, 2025 and 2024.

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Equity contracts (2)

$ 15,119 Internal model Payout % designated based on operating revenue and operating EBITDA of investee 84 % 84 %

$ 13,734 Internal model Payout % based on operating revenue and measure of operating profit of investee

December 31, 2024

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Equity contracts (2)

$ 15,119 Internal model Payout % designated based on operating revenue and operating EBITDA of investee 84 % 84 %

$ 15,119 Internal model Payout % based on operating revenue and measure of operating profit of investee

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

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

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis include certain individually evaluated loans held-for-investment, investments in affordable housing partnership, tax credit and CRA investments, OREO, loans held-for-sale, and other nonperforming assets.

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

Assets measured at fair value on a nonrecurring basis may include certain individually evaluated loans held-for-investment, loans held-for-sale, affordable housing partnership, tax credit and CRA investments, OREO, loans held-for-sale and other nonperforming assets.

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

Individually Evaluated Loans Held-for-Investment — Individually evaluated loans held-for-investment are classified as Level 3 assets.

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An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches.

Loans Held-for-Sale — Loans held-for-investment subsequently transferred to held-for-sale are recorded at the lower of cost or fair value upon transfer.

Loans held-for-sale may be measured at fair value on a nonrecurring basis when fair value is less than cost.

Fair value is generally determined based on available market data for similar loans and therefore, loans held-for-sale are classified as Level 2.

Affordable Housing Partnership, Tax Credit and CRA Investments, Net — The Company conducts due diligence and secures applicable internal and external approval on its affordable housing partnership, tax credit and CRA investments prior to closing the investment and initial funding.

Subsequent to closing, the Company continues its periodic monitoring process to ensure that book values are realizable, investment is performing as expected and there is no significant tax credit recapture risk.

After closing, the Company continues its periodic monitoring process to ensure that book values are realizable, the investments are performing as expected and there is no significant tax credit recapture risk.

This monitoring process includes reviewing the investment entity’s financial statements, production reports and a nnual tax returns, the annual financial statements of the sponsor and guarantor (if any) and a comparison of the actual performance to plan based on the final financial model at the time of closing.

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OREO properties are classified as Level 3.

Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon transfer from loans to foreclosed assets.

Subsequently, foreclosed assets are recorded at the lower of carrying value or fair value.

Fair value is based on independent market prices, appraised values of the collateral or management’s estimated recovery of the foreclosed asset.

The Company records an impairment when the foreclosed asset’s fair value declines below its carrying value.

The fair value measurement of other nonperforming assets is classified within one of the three levels in a valuation hierarchy based upon the observability of inputs to the valuation as of the measurement date.

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

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CRE — — 13,335 13,335

Construction and land — — 11,316 11,316

Total commercial — — 61,378 61,378

Residential mortgage:

Single-family residential

Total consumer — — 108 108

Total loans held-for-investment $ — $ — $ 19,251 $ 19,251

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$ — $ — $ 13,035 $ 13,035

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

Assets Measured at Fair Value on a Nonrecurring Basis

4 unchanged sentences

CRE — — 1,678 1,678

Construction and land — — 11,316 11,316

Total commercial — — 61,378 61,378

4 unchanged sentences

Affordable housing partnership, tax credit and CRA investments, net $ — $ — $ 5,000 $ 5,000

$ — $ — $ 19,386 $ 19,386

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

The following table presents the change in the fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the years ended December 31, 2025, 2024 and 2023:

10 unchanged sentences

HELOCs — — ( 40 )

Total residential mortgage ( 1,392 ) ( 40 ) 166

Total consumer — ( 1,392 ) ( 40 )

2 unchanged sentences

OREO ( 7,381 ) ( 7,735 ) —

Other nonperforming assets $ — $ — $ ( 6,861 )

Total nonrecurring fair value losses $ ( 70,757 ) $ ( 55,933 ) $ ( 8,515 )

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

2 unchanged sentences

Loans held-for-investment $ 4,516 Fair value of collateral Discount 75 % — 100 %

$ 22,993 Fair value of collateral Contract value NM NM

$ 14,735 Fair value of property Selling cost 8 %

8 unchanged sentences

benefits and distributions NM NM

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

NM - Not meaningful

12 unchanged sentences

Restricted equity securities, at cost $ 153,484 $ — $ 153,484 $ — $ 153,484

Loans held-for-sale $ 20,976 $ — $ 20,976 $ — $ 20,976

Loans held-for-investment, net $ 56,068,399 $ — $ — $ 54,665,865 $ 54,665,865

15 unchanged sentences

Restricted equity securities, at cost $ 165,259 $ — $ 165,259 $ — $ 165,259

Loans held-for-sale $ 116 $ — $ 116 $ — $ 116

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

4 unchanged sentences

Time deposits $ 23,215,772 $ — $ 23,225,317 $ — $ 23,225,317

BTFP borrowings

$ 4,500,000 $ — $ 4,500,000 $ — $ 4,500,000

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

Long-term debt $ 32,001 $ — $ 31,246 $ — $ 31,246

4 unchanged sentences

The relevant agreements allow for an efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default.

It is the Company’s policy to take possession, where possible, of the assets underlying resale agreements.

It is the Company’s policy to take possession, where possible, of the collateral underlying resale agreements.

As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both December 31, 2025 and 2024.

Total securities purchased under resale agreements were $ 425 million and $ 785 million as of December 31, 2024 and 2023, respectively.

The weighted-average yields were 2.17 %, 2.87 % and 2.12 % for the years ended December 31, 2024, 2023 and 2022, respectively.

Gross securities purchased under resale agreements were $ 425 million as of both December 31, 2025 and 2024.

Balance Sheet Offsetting

12 unchanged sentences

$ 425,000 $ — $ 425,000 $ ( 329,603 ) $ 95,397

(1) Represents the fair value of assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty.

(1) Represents the fair value of collateral the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty.

The application of collateral cannot reduce the net position below zero.

3 unchanged sentences

Note 4 — Securities

The following tables present the amortized cost, gross unrealized gains and losses, and fair value by major categories of AFS and HTM debt securities as of December 31, 2024 and 2023:

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

December 31, 2025

($ in thousands) Amortized Cost (1)

Gross Unrealized Gains Gross Unrealized Losses Fair Value

Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value

AFS debt securities:

14 unchanged sentences

Asset-backed securities 31,886 — ( 497 ) — 31,389

CLOs 44,500 — ( 7 ) 44,493

Total AFS debt securities 13,619,781 69,974 ( 475,635 ) ( 1,900 ) 13,212,220

44 unchanged sentences

As of December 31, 2025 and 2024, the accrued interest receivables were $ 54 million and $ 45 million, respectively.

For the Company’s accounting policy related to debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in this Form 10-K.

(2) Includes 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.

For the Company’s accounting policy related to debt securities’ accrued interest receivables, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in this Form 10-K.

(2) Includes 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.

(3) 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.

19 unchanged sentences

Asset-backed securities — — 31,389 ( 497 ) 31,389 ( 497 )

CLOs — — 44,493 ( 7 ) 44,493 ( 7 )

Total AFS debt securities $ 1,375,852 $ ( 7,107 ) $ 4,071,829 $ ( 468,528 ) $ 5,447,681 $ ( 475,635 )

19 unchanged sentences

Total AFS debt securities $ 2,735,499 $ ( 16,861 ) $ 4,413,878 $ ( 657,376 ) $ 7,149,377 $ ( 674,237 )

As of December 31, 2024, the Company had 541 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 290 U.S.

As of December 31, 2025, the Company had 429 AFS debt securities in a gross unrealized loss position, primarily consisting of 222 U.S.

government agency and U.S.

government-sponsored enterprise mortgage-backed securities, 47 corporate debt securities, and 66 non-agency mortgage-backed securities.

In comparison, as of December 31, 2023, the Company had 547 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 255 U.S.

In comparison, as of December 31, 2024, the Company had 541 AFS debt securities in a gross unrealized loss position, primarily consisting of 290 U.S.

government agency and U.S.

10 unchanged sentences

The remaining securities that were in an unrealized loss position as of December 31, 2025 were mainly comprised of the following:

• Corporate debt securities — The market value decline as of December 31, 2024 was primarily due to interest rate movement and spread widening.

• Corporate debt securities — The market value movement as of December 31, 2025 was primarily due to interest rate movement and spread change.

A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S.

Despite the reduction of the market value of these securities after the banking sector disruption in 2023, these securities are nearly all rated investment grade by NRSROs and issued by well-capitalized financial institutions with strong profitability.

These securities are nearly all rated investment grade by NRSROs and issued by well-capitalized financial institutions with strong profitability.

The contractual payments from these corporate debt securities have been and are expected to be received on time.

The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities.

• Non-agency mortgage-backed securities — The market value decline as of December 31, 2024, was primarily due to interest rate movement and spread widening.

Since these securities are rated investment grade by NRSROs, or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time, the Company believes the risk of credit losses on these securities is low.

• Non-agency mortgage-backed securities — The market value movement for the majority of these securities as of December 31, 2025 was primarily due to interest rate movement and spread change.

In contrast, one non-agency commercial mortgage-backed security experienced a deterioration in both its credit rating and expected cash flows, resulting in its fair value falling below its amortized cost.

Consequently, a credit-related impairment of $ 2 million was recognized through allowance for credit losses as of December 31, 2025.

For the remaining non-agency mortgage-backed securities, a substantial majority are rated investment grade by NRSROs or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have been on time.

Accordingly, the Company believes the risk of credit losses on the remaining securities is low.

As of both December 31, 2025 and 2024, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would not have to sell these securities before the recovery of their amortized cost.

1 unchanged sentence

As a result, the Company expects to recover the entire amortized cost basis of these securities.

Accordingly, there was no allowance for credit losses provided against these securities as of both December 31, 2024 and 2023.

In addition, there was no provision for credit losses recognized for the years ended December 31, 2024, 2023, and 2022.

The Company recorded $ 2 million in allowance for credit losses related to a non-agency commercial mortgage-backed security as of December 31, 2025, which was recognized as a provision for credit losses, compared with no allowance for credit losses provided against these securities as of 2024.

In addition, there was no provision for credit losses recognized for both the years ended December 31, 2024 and 2023.

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

6 unchanged sentences

Overall, the Company believes that the credit support levels of the debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received.

Realized Gains and Losses

The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the years ended December 31, 2024, 2023 and 2022:

Realized Gains and Credit Losses

The following table presents the gross realized gains from the sales of AFS debt securities (pre-tax), credit losses, the impairment write-off of AFS debt securities, and the related tax (benefit) expense included in earnings for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

2 unchanged sentences

$ 963 $ 2,069 $ 3,138

Credit losses $ ( 1,900 ) $ — $ —

Impairment write-off (1)

$ — $ — $ ( 10,000 )

Related tax expense (benefit)

Related tax (benefit) expense

$ ( 277 ) $ 612 $ ( 2,029 )

55 unchanged sentences

— % — % — % 4.65 % 4.65 %

Amortized cost — — 44,500 — 44,500

Fair value — — 44,493 — 44,493

Weighted average yield (1)

— % — % 6.08 % — % 6.08 %

Total AFS debt securities

35 unchanged sentences

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

As of December 31, 2024 and 2023, AFS and HTM debt securities with carrying values of $ 5.4 billion and $ 7.0 billion, respectively, were pledged to secure borrowings, public deposits, repurchase agreements and for other purposes required or permitted by law.

As of December 31, 2025 and 2024, AFS and HTM debt securities with carrying values of $ 4.6 billion and $ 5.4 billion, respectively, were pledged to secure borrowings and for other purposes required or permitted by law.

As of December 31, 2025, $ 4.6 billion of AFS and HTM debt securities were prepositioned for the FRB Standing Repurchase Agreement Facility.

Restricted Equity Securities

8 unchanged sentences

The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on earnings or capital.

The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, as well as the Bank’s investment in East West Bank (China) Limited.

The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, the funding needs, as well as the Bank’s investment in EWCN.

The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value.

2 unchanged sentences

The following table presents the notional amounts and fair values of the Company’s derivatives as of December 31, 2025 and 2024.

Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts.

Certain derivative contracts are cleared through central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts.

The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations.

Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values of $ 16 million and $ 3 million, respectively, as of December 31, 2025.

In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in both the derivative asset and liability fair values of $ 43 million as of December 31, 2023.

Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid.

In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $ 17 million and $ 15 million, respectively, as of December 31, 2024.

Total gross derivative asset and liability fair values are then adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid.

The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet.

5 unchanged sentences

Interest rate contracts $ 4,250,000 $ 39,997 $ 139 $ 5,250,000 $ 5,647 $ 35,211

Net investment hedges:

Foreign exchange contracts — — — 81,480 3,394 —

Total derivatives designated as hedging instruments $ 5,250,000 $ 5,647 $ 35,211 $ 5,331,480 $ 53,815 $ 13,124

Derivatives not designated as hedging instruments:

11 unchanged sentences

Net derivative assets/liabilities $ 151,942 $ 284,333 $ 95,841 $ 433,601

(1) The notional amount of the Company’s commodity contracts totaled 20,614 thousand barrels of crude oil and 406,726 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2024.

In comparison, the notional amount of the Company’s commodity contracts totaled 18,631 thousand barrels of crude oil and 328,844 thousand MMBTUs of natural gas as of December 31, 2023.

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

(3) The Company held equity contracts in eight private companies and no public company as of December 31, 2024, and 11 private companies and one public company as of December 31, 2023.

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

(1) The notional amount of the Company’s commodity contracts totaled 16 million barrels of crude oil and 364 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2025.

In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.

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

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

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

Derivatives Designated as Hedging Instruments

Cash Flow Hedges — The Company uses interest rate swaps to hedge the variability in the interest amount received on certain floating-rate commercial loans, or paid on certain floating-rate borrowings due to changes in contractually specified interest rates.

As of December 31, 2024, interest rate contracts with total notional amount of $ 5.3 billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments.

Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and within the same income statement line item as the hedged cash flows.

Considering the interest rates, yield curve and notional amounts as of December 31, 2024, the Company expects to reclassify an estimated $ 11 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months.

Cash Flow Hedges — The Company uses interest rate swaps and collars to hedge the variability in the interest amount received on certain floating-rate commercial loans due to changes in the contractually specified interest rates.

As of December 31, 2025, interest rate contracts in notional amounts of $ 4.3 billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments.

Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and are recorded within the same income statement line item as the hedged cash flows.

Considering the interest rates, yield curve and notional amount as of December 31, 2025, the Company expects to reclassify an estimated $ 8 million of after-tax net gains on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months.

The following table presents the pre-tax changes in AOCI from cash flow hedges for the years ended December 31, 2025, 2024 and 2023.

2 unchanged sentences

($ in thousands) 2025 2024 2023

Losses recognized in AOCI:

Gains (losses) recognized in AOCI:

Interest rate contracts

$ 48,016 $ ( 124,382 ) $ ( 5,767 )

Gains (losses) reclassified from AOCI into earnings:

Losses (gains) reclassified from AOCI into earnings:

Interest expense (for cash flow hedges on borrowings) $ — $ — $ ( 696 )

3 unchanged sentences

(1) Represents the amounts in AOCI reclassified into earnings resulting from forecasted cash flows that were no longer probable to occur.

Net Investment Hedges — The Company enters into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China.

The hedging instruments designated as net investment hedges were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the RMB.

The following table presents the pre-tax gains (losses) recognized in AOCI on net investment hedges for the years ended December 31, 2024, 2023 and 2022:

Net Investment Hedges — The Company entered into foreign currency forward contracts to hedge a portion of the Bank’s investment in EWCN, a non-USD functional currency subsidiary in China.

The hedging instruments designated as net investment hedges were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi.

There was no active net investment hedge during the year ended December 31, 2025.

The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

4 unchanged sentences

Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk.

The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers.

A majority of the foreign exchange contracts had original maturities of one year or less as of both December 31, 2025 and 2024.

12 unchanged sentences

Swaps 785,956 13,272 661 1,504,469 16,117 25,366

Purchased options

— — — 136,000 1,839 —

Written options 63,460 — 73 — — —

Subtotal 2,005,619 36,933 3,565 2,500,955 27,810 49,567

Total $ 11,480,222 $ 84,692 $ 212,279 $ 10,994,794 $ 39,718 $ 416,216

Economic hedges:

Economic hedges and other:

Interest rate contracts:

7 unchanged sentences

Swaps 2,246,744 5,718 36,083 2,613,755 58,955 19,949

Written options

— — — 136,000 — 1,839

Purchased options 63,460 87 14 — — —

Subtotal 2,544,482 7,407 39,595 2,700,505 61,273 21,687

2 unchanged sentences

Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions.

The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for its customers and entered for economic hedges as of December 31, 2024 and 2023:

The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of December 31, 2025 and 2024:

December 31, 2025 December 31, 2024

Fair Value Fair Value

(Amounts in thousands)

Notional Units Assets Liabilities Notional Units Assets Liabilities

($ and units in thousands) Notional Units Assets Liabilities Notional Units Assets Liabilities

Customer-related positions:

18 unchanged sentences

Total $ 58,103 $ 4,907 $ 22,890 $ 12,828

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndication loans.

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndicated loans.

Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection).

1 unchanged sentence

The Company may enter into protection sold or protection purchased RPAs.

Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, and is a part of the Company’s normal credit review and monitoring process.

Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure of protection sold RPAs would be $ 170 thousand and $ 177 thousand as of December 31, 2024 and 2023, respectively.

Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process.

Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure in the credit protection sold RPAs would be $ 590 thousand and $ 170 thousand as of December 31, 2025 and 2024, respectively.

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

($ in thousands) December 31, 2024 December 31, 2023

Notional Amount

Fair Value Notional Amount

Assets Liabilities Assets Liabilities

December 31, 2025 December 31, 2024

Fair Value Fair Value

($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities

RPAs — protection sold (1)

5 unchanged sentences

The weighted-average remaining maturities were 2.7 years and 1.6 years as of December 31, 2025 and 2024, respectively.

Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of the borrowers’ companies, which are mainly in the technology and life sciences sectors.

Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of its borrowers’ companies, which are mainly in the technology and life sciences sectors.

Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration.

In connection with the Company’s investment in Rayliant during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration.

The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets during the future performance period.

For additional information on these equity contracts, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net to the Consolidated Financial Statements in this Form 10-K.

In connection with an investment the Company made during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration.

The vesting of these equity contracts is contingent on the investee meeting certain financial performance targets during the future performance period.

For additional information on these equity contracts, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K.

The following table presents the net gains (losses) due to fair value changes that are recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the years ended December 31, 2025, 2024 and 2023:

2 unchanged sentences

Derivatives not designated as hedging instruments:

Interest rate contracts Customer derivative income $ 549 $ ( 2,989 ) $ 13,905

Interest rate contracts Customer derivative income, net of mark-to-market adjustments $ ( 3,142 ) $ 549 $ ( 2,989 )

Foreign exchange contracts Foreign exchange income 52,295 54,073 52,817

Credit contracts Customer derivative income — ( 1 ) 118

Equity contracts - warrants Lending fees ( 97 ) 13 151

Commodity contracts Customer derivative income 929 ( 25 ) 48

Credit contracts Customer derivative income, net of mark-to-market adjustments ( 15 ) — ( 1 )

Equity contracts - warrants Lending and loan servicing fees 283 ( 97 ) 13

Equity contracts - performance-based RSUs

Other investment income

Commodity contracts Customer derivative income, net of mark-to-market adjustments 960 929 ( 25 )

Net gains $ 51,766 $ 55,454 $ 49,815

Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event.

Such an event primarily relates to a downgrade in the credit rating of East West Bank to below investment grade.

Such an event primarily relates to a downgrade of the credit rating of East West Bank to below investment grade.

As of December 31, 2025, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 3 million, for which $ 3 million collateral was posted to cover these positions.

In comparison, as of December 31, 2023, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 9 thousand, for which no collateral was posted to cover these positions.

In the event that the credit rating of East West Bank had been downgraded to below investment grade, minimal additional collateral would have been required to be posted as of both December 31, 2024 and 2023.

In comparison, as of December 31, 2024, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $ 1 million, for which $ 1 million collateral was posted to cover these positions.

In the event that the credit rating of East West Bank had been downgraded to below investment grade, the Company would have been required to post minimal additional collateral as of both December 31, 2025 and 2024.

Offsetting of Derivatives

The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements.

The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central counterparty clearing houses, where applicable.

The gross fair values of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable.

The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability.

32 unchanged sentences

Of the gross cash collateral received, $ 183 million and $ 316 million were used to offset against derivative assets as of December 31, 2025 and 2024, respectively.

(4) Gross cash collateral pledged under master netting arrangements or similar agreements were $ 1 million as of both December 31, 2024 and 2023.

Of the gross cash collateral pledged, $ 1 million cash collateral was used to offset against derivative liabilities as of both December 31, 2024 and 2023.

(4) Gross cash collateral pledged under master netting arrangements or similar agreements were $ 29 million and $ 1 million as of December 31, 2025 and 2024, respectively.

Of the gross cash collateral pledged, $ 28 million and $ 1 million were used to offset against derivative liabilities as of December 31, 2025 and 2024, respectively.

(5) Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements.

GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts.

In addition to the amounts included in the tables above, the Company has balance sheet netting related to the resale and repurchase agreements.

GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts.

In addition to the amounts included in the tables above, the Company may have balance sheet netting related to resale agreements.

Refer to Note 3 — Securities Purchased under Resale Agreements to the Consolidated Financial Statements in this Form 10-K for additional information.

17 unchanged sentences

$ 56,878,172 $ 53,726,637

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

ALLL ( 809,773 ) ( 702,052 )

Loans held-for-investment, net (1)

2 unchanged sentences

Accrued interest receivable on loans held-for-investment was $ 251 million and $ 255 million as of December 31, 2025 and 2024, respectively, and was included in Other assets on the Consolidated Balance Sheet.

The interest income reversed was insignificant for the years ended December 31, 2024, 2023 and 2022.

The interest income recognized and reversed on nonaccrual loans was $ 7 million and $ 5 million, respectively, for the year ended December 31, 2025, compared with immaterial amounts for each of the years ended December 31, 2024 and 2023.

For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in this Form 10-K.

22 unchanged sentences

The vintage year is the year of loan origination, renewal or major modification.

Gross write-offs in the following tables are for the years ended December 31, 2024 and 2023.

Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns.

29 unchanged sentences

Subtotal construction and land 246,380 118,696 247,482 108,999 13,437 3,462 3,901 — 742,357

Gross write-offs

— — 2,289 — — — — — 2,289

Total CRE 3,791,084 2,049,132 2,862,731 4,582,687 2,447,179 5,362,808 114,820 51,332 21,261,773

31 unchanged sentences

Total other consumer 25,146 — 49 4,635 129 5,570 15,669 — 51,198

Gross write-offs (2)

— 3,000 — — — — 890 — 3,890

Total consumer $ 2,911,452 $ 1,847,167 $ 2,363,541 $ 2,831,381 $ 1,874,846 $ 3,287,067 $ 1,773,347 $ 76,843 $ 16,965,644

34 unchanged sentences

Pass 90,926 328,803 184,792 41,932 — 8,393 — — 654,846

Criticized (nonaccrual) — — 11,316 — — — — — 11,316

Subtotal construction and land

90,926 328,803 196,108 41,932 — 8,393 — — 666,162

Gross write-offs — — 2,289 — — — — — 2,289

Total CRE 2,173,089 3,191,877 5,360,307 2,783,039 1,986,888 4,602,987 111,431 65,326 20,274,944

14 unchanged sentences

Subtotal single-family residential mortgage 2,367,565 2,776,003 3,077,347 2,087,168 1,410,983 2,456,380 — — 14,175,446

Gross write-offs (2)

9 — — — — — — — 9

Pass 7,453 3,288 4,071 3,236 7,570 8,152 1,648,337 99,488 1,781,595

11 unchanged sentences

Total other consumer 14,916 — 22,992 132 — 6,800 22,621 — 67,461

Gross write-offs (2)

— 3,000 — — — — 890 — 3,890

Total consumer $ 2,394,531 $ 2,782,386 $ 3,108,350 $ 2,090,575 $ 1,419,106 $ 2,480,697 $ 1,673,296 $ 105,594 $ 16,054,535

1 unchanged sentence

$ 9 $ 3,010 $ — $ — $ — $ — $ 890 $ 5 $ 3,914

Total by Risk Rating:

Total loans held-for-investment:

Pass $ 7,127,517 $ 7,422,477 $ 9,316,206 $ 5,414,088 $ 3,567,683 $ 7,175,711 $ 12,356,727 $ 173,075 $ 52,553,484

5 unchanged sentences

$ 29 $ 50,973 $ 17,137 $ 11,119 $ 1,568 $ 3,025 $ 27,989 $ 5 $ 111,845

(1) $ 7 million of total commercial loans, comprised of CRE and C&I revolving loans, were converted to term loans during the year ended December 31, 2024.

In comparison, $ 29 million and $ 26 million of total commercial loans, primarily comprised of CRE revolving loans, were converted to term loans during the years ended December 31, 2023 and 2022, respectively.

During the years ended December 31, 2024 and 2023, respectively, $ 22 million and $ 44 million of total consumer loans, comprised of HELOCs, were converted to term loans.

For the year ended December 31, 2022, no consumer loans were converted to term loans.

(1) During the year ended December 31, 2025, $ 53 million of total commercial loans, comprised of C&I revolving loans, were converted to term loans.

In comparison, $ 7 million of total commercial loans, comprised of CRE and C&I revolving loans, and $ 29 million of total commercial loans, primarily comprised of CRE revolving loans, were converted to term loans during the years ended December 31, 2024 and 2023, respectively.

During the years ended December 31, 2025, 2024 and 2023, respectively, $ 2 million, $ 22 million and $ 44 million of total consumer loans, comprised of HELOCs, were converted to term loans.

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

35 unchanged sentences

Total $ 53,462,858 $ 55,354 $ 49,407 $ 104,761 $ 159,018 $ 53,726,637

The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of December 31, 2024 and 2023.

The following table presents the amortized cost of loans on nonaccrual status for which there was no related ALLL as of December 31, 2025 and 2024.

Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.

3 unchanged sentences

Construction and land

27,810 11,316

Total commercial 83,238 95,117

2 unchanged sentences

Total consumer 10,176 21,659

Total nonaccrual loans with no related allowance for loan losses $ 116,776 $ 72,085

Total nonaccrual loans with no related ALLL $ 93,414 $ 116,776

Foreclosed Assets

5 unchanged sentences

The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines.

The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $ 16 million and $ 8 million as of December 31, 2024 and 2023, respectively.

The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $ 16 million as of both December 31, 2025 and 2024.

Loan Modifications to Borrowers Experiencing Financial Difficulty

2 unchanged sentences

The Company considers various factors to identify borrowers experiencing financial difficulty.

The primary factor for consumer borrowers is delinquency status.

The primary factor for consumer loan borrowers is delinquency status.

For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes.

5 unchanged sentences

Modification Type

($ in thousands) Term Extension Payment Delay Combination:

Term Extension/ Payment Delay Combination:

Rate Reduction/ Term Extension Combination:

Rate Reduction/ Payment Delay Total Modification as a % of Loan Class

($ in thousands) Interest Rate Reduction

Term Extension Payment Delay Term Extension/ Payment Delay

Rate Reduction /Term Extension/ Payment Delay

Rate Reduction/ Payment Delay

Total Modification as a % of Loan Class

C&I $ 6,057 $ 77,039 $ 51,904 $ 33,450 $ — $ 19,579 $ 188,029 1.01 %

CRE — 167,286 — — — — 167,286 1.09 %

Multifamily — 275 — — — — 275 0.01 %

Land and construction — 9,451 — — — — 9,451 1.27 %

Total commercial 6,057 254,051 51,904 33,450 — 19,579 365,041 0.91 %

5 unchanged sentences

Modification Type

($ in thousands) Term Extension Payment Delay Combination:

Term Extension/ Payment Delay Combination:

Rate Reduction/ Term Extension Combination:

Rate Reduction/ Payment Delay Total Modification as a % of Loan Class

($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay

Rate Reduction/ Term Extension

Rate Reduction/ Payment Delay

Total Modification as a % of Loan Class

C&I $ 57,102 $ 26,420 $ — $ — $ — $ 83,522 0.48 %

5 unchanged sentences

Total $ 143,360 $ 56,120 $ 222 $ 6,052 $ 657 $ 206,411 0.38 %

Year Ended December 31, 2023

Modification Type

($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay

Rate Reduction/ Term Extension

Reduction/ Payment Delay

Total Modification as a % of Loan Class

C&I $ 62,704 $ 6,842 $ — $ — $ — $ 69,546 0.42 %

CRE 13,939 — — 32,470 — 46,409 0.31 %

Total commercial 76,643 6,842 — 32,470 — 115,955 0.31 %

Single-family residential — 10,202 3,967 — — 14,169 0.11 %

HELOCs — 3,148 1,170 — 815 5,133 0.30 %

Total consumer — 13,350 5,137 — 815 19,302 0.13 %

Total $ 76,643 $ 20,192 $ 5,137 $ 32,470 $ 815 $ 135,257 0.26 %

The following tables present the financial effects of the loan modifications for the years ended December 31, 2025, 2024 and 2023 by loan class and modification type:

Year Ended December 31, 2025

Financial Effects of Loan Modifications

($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay (in years)

C&I 3.38 % 1.1 0.8

CRE — % 3.2 0.0

Multifamily — % 10.0 0.0

Land and construction — % 0.8 0.0

Single-family residential — % 15.0 3.5

HELOCs 0.97 % 15.3 4.8

Year Ended December 31, 2024

Financial Effects of Loan Modifications

($ in thousands) Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay

3 unchanged sentences

HELOCs 0.25 % 0.0 1.7

Financial Effects of Loan Modifications

Year Ended December 31, 2023

Financial Effects of Loan Modifications

($ in thousands) Principal Forgiveness Weighted-Average Interest Rate Reduction Weighted-Average Term Extension (in years) Weighted-Average Payment Delay

3 unchanged sentences

HELOCs — 0.11 % 14.2 4.6

(1) Comprised of C&I loans modified during the year ended December 31, 2023 where the interest rate was waived in addition to principal forgiveness.

(1) Comprised of C&I loans modified during the year ended December 31, 2023 where the interest was waived in addition to principal forgiveness.

No recorded investment was outstanding as of December 31, 2023.

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification.

The following tables present information on loans that defaulted during the years ended December 31, 2024 and 2023 that received modifications during the 12 months preceding payment default.

Loans Modified Subsequently Defaulted During the Year Ended December 31, 2024

The following tables present the amortized cost basis of modified loans that, within 12 months of the modification date, experienced a subsequent default during the years ended December 31, 2025, 2024 and 2023.

Loans Modified that Subsequently Defaulted During the Year Ended December 31, 2025

($ in thousands) Term Extension Payment Delay Combination:

2 unchanged sentences

C&I $ 206 $ 5,073 $ — $ — $ 5,279

CRE 29,991 — — — 29,991

Total commercial 30,197 5,073 — — 35,270

3 unchanged sentences

Total $ 30,197 $ 12,648 $ 746 $ 1,521 $ 45,112

Loans Modified Subsequently Defaulted During the Year Ended December 31, 2023

Loans Modified that Subsequently Defaulted During the Year Ended December 31, 2024

($ in thousands) Term Extension Payment Delay Combination:

1 unchanged sentence

Term Extension/ Payment Delay Total

C&I $ 3,684 $ 4,937 $ — $ — $ 8,621

Total commercial 3,684 4,937 — — 8,621

Single-family residential — 10,223 141 2,462 12,826

2 unchanged sentences

Total $ 3,684 $ 19,850 $ 658 $ 2,462 $ 26,654

Loans Modified that Subsequently Defaulted During the Year Ended December 31, 2023

($ in thousands) Term Extension Payment Delay Combination:

Rate Reduction/ Payment Delay Combination:

Term Extension/ Payment Delay Total

Single-family residential $ — $ 267 $ — $ — $ 267

HELOCs — 749 — — 749

Total consumer — 1,016 — — 1,016

Total $ — $ 1,016 $ — $ — $ 1,016

The Company monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts.

The following table presents the performance of loans that were modified during the years ended December 31, 2024 and 2023, respectively.

The following table presents the performance of loans that were modified during the years ended December 31, 2025, 2024 and 2023.

Payment Performance as of December 31, 2025

2 unchanged sentences

CRE 167,286 — — 167,286

Multifamily residential 275 — — 275

Construction and land 9,451 — — 9,451

Total commercial 362,070 806 2,165 365,041

3 unchanged sentences

Total $ 400,406 $ 9,269 $ 4,684 $ 414,359

Total nonaccrual loans included above

$ 11,888 $ 206 $ 4,684 $ 16,778

Payment Performance as of December 31, 2024

7 unchanged sentences

Total $ 181,307 $ 19,485 $ 5,619 $ 206,411

As of December 31, 2024 and 2023, commitments to lend additional funds to borrowers whose loans were modified were $ 10 million and $ 4 million, respectively.

Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR.

ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023.

The following table presents the additions to TDRs for the year ended December 31, 2022:

Loans Modified as TDRs During the Year Ended

December 31, 2022

($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (1)

Financial Impact (2)

C&I 7 $ 69,050 $ 38,415 $ 12,638

Total commercial 7 69,050 38,415 12,638

HELOCs 2 662 697 2

Total consumer 2 662 697 2

Total 9 $ 69,712 $ 39,112 $ 12,640

(1) Includes subsequent payments after modification and reflects the balance as of December 31, 2022.

(2) Includes charge-offs and specific reserves recorded since the modification date.

Loans modified more than once are reported in the period they were first modified.

The following table presents the TDR post-modification outstanding balances by the primary modification type for the year ended December 31, 2022:

Modification Type During the Year Ended

December 31, 2022

($ in thousands) Principal (1)

Total nonaccrual loans included above $ 9,209 $ 142 $ 5,619 $ 14,970

Payment Performance as of December 31, 2023

($ in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total

C&I $ 52,087 $ 8,153 $ 9,306 $ 69,546

CRE 46,409 — — 46,409

Total commercial 98,496 8,153 9,306 115,955

Single-family residential 11,197 2,425 547 14,169

HELOCs 4,207 177 749 5,133

1 unchanged sentence

Total $ 113,900 $ 10,755 $ 10,602 $ 135,257

(1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.

(2) Includes primarily funding to secure additional collateral and provide liquidity to collateral-dependent and term extension to C&I loans.

After a loan is modified as a TDR, the Company continues to monitor its performance under its most recent restructured terms.

A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring.

The following table presents information on loans that entered into default during the year ended December 31, 2022 that were modified as TDRs during the 12 months preceding payment default:

Loans Modified as TDRs that Subsequently During the Year Ended December 31, 2022

($ in thousands) Number of Loans Recorded Investment

C&I 2 $ 10,296

Total commercial 2 10,296

Total 2 $ 10,296

As of December 31, 2022 , the remaining commitments to lend to borrowers whose terms of their outstanding owed balances were modified as TDRs was $ 16 million.

Total nonaccrual loans included above $ 8,666 $ 310 $ 10,602 $ 19,578

As of December 31, 2025 and 2024, commitments to lend additional funds to borrowers whose loans were modified were $ 14 million and $ 10 million, respectively.

Allowance for Credit Losses

The Company has a current expected credit losses (“CECL”) framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures.

The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios.

The Company’s allowance for credit losses, which includes both the ALLL and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios.

The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

6 unchanged sentences

If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

Allowance for Collectively Evaluated Loans

ALLL for Collectively Evaluated Loans

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

Each of these components are described below.

Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan.

Quantitative Component — The Company applies quantitative methods to estimate ALLL by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan.

The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses.

2 unchanged sentences

The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period.

If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses.

There were no changes to the reasonable and supportable forecast period, except to the C&I segment, and no changes to the reversion to the historical loss experience method in 2024 and 2023.

The reasonable and supportable forecast period for the C&I segment changed from 11 quarters to eight quarters due to model redevelopment during the third quarter of 2023.

There were no changes to the reasonable and supportable forecast period, and no changes to the reversion to the historical loss experience method in 2025 and 2024.

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

6 unchanged sentences

Other consumer Loss rate approach Immaterial - Macroeconomic variables are included in the qualitative estimate.

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

Quantitative Component — ALLL for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan.

4 unchanged sentences

To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

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

Quantitative Component — ALLL for the Consumer Loan Portfolio

For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level.

14 unchanged sentences

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors.

The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

The extent to which these factors change may depend on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes.

The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

Allowance for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for loan losses on an individual loan basis.

The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value.

ALLL for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the ALLL on an individual loan basis.

The ALLL for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value.

For loans evaluated individually, the Company uses one of three different asset valuation measurement methods:

9 unchanged sentences

As of both December 31, 2025 and 2024, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the majority of the loans.

The following tables summarize the activity in the allowance for loan losses by portfolio segments for the years ended December 31, 2024, 2023 and 2022:

The following tables summarize the activity in the ALLL by portfolio segments for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31, 2025

2 unchanged sentences

($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total

Allowance for loan losses, beginning of period $ 392,685 $ 170,592 $ 34,375 $ 10,469 $ 55,018 $ 3,947 $ 1,657 $ 668,743

ALLL, beginning of period $ 384,319 $ 218,677 $ 32,117 $ 17,497 $ 44,816 $ 3,132 $ 1,494 $ 702,052

ALLL recognized on PCD loans

18,175 — — — — — — 18,175

Provision for (reversal of) credit losses on loans (a) 106,941 26,825 4,386 ( 45 ) 8,398 2,656 ( 229 ) 148,932

3 unchanged sentences

Foreign currency translation adjustment 453 — — — — — — 453

Allowance for loan losses, end of period $ 384,319 $ 218,677 $ 32,117 $ 17,497 $ 44,816 $ 3,132 $ 1,494 $ 702,052

ALLL, end of period $ 475,613 $ 221,494 $ 36,555 $ 15,468 $ 53,463 $ 5,804 $ 1,376 $ 809,773

Year Ended December 31, 2024

2 unchanged sentences

($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total

Allowance for loan losses, December 31, 2022 $ 371,700 $ 149,864 $ 23,373 $ 9,109 $ 35,564 $ 4,475 $ 1,560 $ 595,645

Impact of ASU 2022-02 adoption 5,683 337 6 — 1 1 — 6,028

Allowance for loan losses, beginning of period 377,383 150,201 23,379 9,109 35,565 4,476 1,560 601,673

ALLL, beginning of period $ 392,685 $ 170,592 $ 34,375 $ 10,469 $ 55,018 $ 3,947 $ 1,657 $ 668,743

Provision for (reversal of) credit losses on loans (a) 110,791 61,908 ( 2,684 ) 9,114 ( 10,176 ) ( 873 ) 4,096 172,176

3 unchanged sentences

Foreign currency translation adjustment ( 249 ) — — — — — — ( 249 )

Allowance for loan losses, end of period $ 392,685 $ 170,592 $ 34,375 $ 10,469 $ 55,018 $ 3,947 $ 1,657 $ 668,743

ALLL, end of period $ 384,319 $ 218,677 $ 32,117 $ 17,497 $ 44,816 $ 3,132 $ 1,494 $ 702,052

Year Ended December 31, 2023

2 unchanged sentences

($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total

Allowance for loan losses, beginning of period $ 338,252 $ 150,940 $ 14,400 $ 15,468 $ 17,160 $ 3,435 $ 1,924 $ 541,579

ALLL, beginning of period $ 371,700 $ 149,864 $ 23,373 $ 9,109 $ 35,564 $ 4,475 $ 1,560 $ 595,645

Impact of ASU 2022-02 adoption 5,683 337 6 — 1 1 — 6,028

Provision for (reversal of) credit losses on loans (a) 45,319 27,007 10,454 11,537 19,384 ( 424 ) 294 113,571

3 unchanged sentences

Foreign currency translation adjustment ( 247 ) — — — — — — ( 247 )

Allowance for loan losses, end of period $ 371,700 $ 149,864 $ 23,373 $ 9,109 $ 35,564 $ 4,475 $ 1,560 $ 595,645

In addition to the allowance for loan losses, the Company maintains an allowance for unfunded credit commitments.

ALLL, end of period $ 392,685 $ 170,592 $ 34,375 $ 10,469 $ 55,018 $ 3,947 $ 1,657 $ 668,743

In addition to the ALLL, the Company maintains an allowance for unfunded credit commitments.

The Company has three general areas for which it provides the allowance for unfunded credit commitments:

7 unchanged sentences

Allowance for unfunded credit commitments, beginning of period $ 39,526 $ 37,699 $ 26,264

Provision for (reversal of) credit losses on unfunded credit commitments (b) 1,824 11,429 ( 1,267 )

Provision for credit losses on unfunded credit commitments (b) 9,168 1,824 11,429

Foreign currency translation adjustments ( 4 ) 3 6

Allowance for unfunded credit commitments, end of period 48,690 39,526 37,699

Provision for credit losses (a) + (b) $ 174,000 $ 125,000 $ 73,500

The allowance for credit losses was $ 742 million as of December 31, 2024, compared with $ 706 million as of December 31, 2023.

The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment and economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and certain CRE markets.

The Company considers multiple economic scenarios to develop the estimate of the allowance for loan losses.

Provision for credit losses on loans, leases and unfunded credit commitments (a) + (b) $ 158,100 $ 174,000 $ 125,000

The allowance for credit losses on loans, leases and unfunded credit commitments was $ 858 million as of December 31, 2025, compared with $ 742 million as of December 31, 2024.

The increase in the allowance for credit losses was primarily driven by the Company’s net loan growth, qualitative risk assessment, and an economic outlook that reflected continued caution regarding inflation, the high-interest rate environment and potential impacts from the escalating tariff and global trade tensions.

The Company considers multiple economic scenarios to develop the estimate of the ALLL.

The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions.

As of December 31, 2024, the Company assigned the same weightings to its baseline, while slightly higher and lower weightings were applied to the upside and downside scenarios, respectively, as compared with December 31, 2023.

The current baseline economic forecast continues to reflect key risks such as still-elevated interest rates, inflation, concerns over global conflicts and oil prices.

Compared to December 2023, the December 2024 baseline forecast for GDP growth showed improvement in the near-term (full year 2025) and worsening for longer-term (2026 and beyond).

The unemployment rate has remained low with the December 2024 forecast showing a small uptick beginning in 2026, compared with the December 2023 forecast for the same periods.

The downside scenario assumed the economy falls into recession in the first quarter of 2025 as a result of tariffs, rising inflation, high interest rates, global and domestic political tensions, and reduced credit availability.

The upside scenario assumed a more optimistic economic outlook, including stronger growth, stable financial market, and full employment starting in the first quarter of 2025.

As of December 31, 2025, the Company assigned the same weightings to its baseline, while applying slightly lower and higher weightings to the upside and downside scenarios, respectively, as compared with December 31, 2024.

The current baseline economic forecast continues to reflect key risks such as a weakening labor market, still-elevated interest rates, inflation, and concerns over global conflicts.

Compared with December 2024, the December 2025 baseline forecast for GDP growth showed mild improvement in the near term, while the forecast for the unemployment rate showed an uptick beginning in 2026 and beyond.

The downside scenario assumed the economy falls into recession in the first quarter of 2026 as a result of tariffs, rising inflation, still-elevated interest rates, political tensions, and reduced credit availability.

The upside scenario assumed a more optimistic economic outlook, including stronger growth, stable financial markets, and full employment starting in the first quarter of 2026.

Loan Transfers, Sales and Purchases

2 unchanged sentences

In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions.

Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate.

The following tables provide information on the carrying value of loans transferred, sold and purchased for the held-for-investment portfolio, during the years ended December 31, 2024, 2023 and 2022:

Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to ALLL are recorded, when appropriate.

The following tables provide information on the carrying value of loans transferred, sold and purchased during the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31, 2025

22 unchanged sentences

$ 647,943 $ 83,282 $ 8,154 $ — $ 739,379

Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ 631 $ 631

$ 674,919 $ 86,749 $ 8,154 $ — $ 769,822

1 unchanged sentence

$ 106,493 $ — $ — $ 493,282 $ 599,775

(1) Includes write-downs of $ 2 million, $ 5 million and $ 3 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2024, 2023 and 2022, respectively.

(1) Includes write-downs to the ALLL related to loans transferred from held-for-investment to held-for-sale of $ 2 million for each of the years ended December 31, 2025 and 2024, and $ 5 million for the year ended December 31, 2023.

(2) Includes originated loans sold of $ 219 million, $ 508 million and $ 513 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Originated loans sold consisted primarily of C&I loans for the year ended December 31, 2024 and C&I and CRE loans for the years ended December 31, 2023 and 2022.

Originated loans sold consisted primarily of C&I and CRE loans for the years ended December 31, 2025 and 2023, and consisted primarily of C&I loans for the year ended December 31, 2024.

(3) Includes $ 97 million, $ 156 million and $ 256 million of purchased loans sold in the secondary market for the years ended December 31, 2025, 2024 and 2023, respectively.

6 unchanged sentences

The Company also invests in small business investment companies and new markets tax credit projects that qualify for CRA consideration, as well as eligible projects that qualify for production, historic and renewable energy tax credits.

Investments in new markets tax credits promote development in low-income communities, investments in production and renewable energy tax credits help promote the development of renewable energy sources, and investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas.

The majority of affordable housing partnership, tax credit and CRA investments discussed above are variable interest entities where the Company is a limited partner in these investments, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these investments.

Investments in new markets tax credits promote development in low-income communities;

investments in production and renewable energy tax credits help promote the development of renewable energy sources;

and investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas.

The majority of the affordable housing partnership, tax credit and CRA investments discussed above are VIEs, where the Company is a limited partner in these investments, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these investments.

While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these investments due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity.

The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture.

The Company records its investments in qualifying affordable housing partnerships, net, using PAM.

Following the adoption of ASU 2023-02 on January 1, 2024, the Company elects to account for its tax credit investments using PAM on a program-by-program basis if certain conditions are met.

For the Company’s accounting policies on tax credit investments, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Securities and Affordable Housing Partnership, Tax Credit and CRA Investments, Net in this Form 10-K.

The Company elects to account for its tax credit investments using the PAM on a program-by-program basis if certain conditions are met.

For the Company’s accounting policies on PAM, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Income Taxes in this Form 10-K.

For discussion on the Company’s impairment evaluation and monitoring process of tax credit investments, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments — Affordable Housing Partnership, Tax Credit and CRA Investments, Net to the Consolidated Financial Statements in this Form 10-K.

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Tax credits and CRA investments 345,748 (2)

121,275 265,994 (2)

Total $ 969,492 $ 337,496 $ 926,640 $ 407,864

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

(2) Includes $ 37 million and $ 29 million of equity securities without readily determinable fair values as of December 31, 2025 and 2024, respectively.

The following table presents additional information related to the investments in affordable housing partnership, tax credit and CRA investments for the years ended December 31, 2025, 2024 and 2023:

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Tax credit and CRA investments (4)

88,883 90,113 —

Equity method of accounting and other:

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Total amortization $ 223,756 $ 190,468 $ 163,340

(1) Included in Income tax expense on the Consolidated Statement of Income for the years ended December 31, 2024, 2023 and 2022.

(1) Include s purchased tax credits and was recorded in Income tax expense on the Consolidated Statement of Income for the years ended December 31, 2025, 2024 and 2023.

(2) Amortization of investments in affordable housing partnership, tax credit and CRA investments is included in Depreciation, amortization, and accretion, net on the Consolidated Statement of Cash Flows.

(3) Amortization related to investments in qualified affordable housing partnerships under PAM was recorded in Income tax expense on the Consolidated Statement of Income for the years ended December 31, 2025, 2024 and 2023.

(3) Due to the adoption of ASU 2023-02 on January 1, 2024, amortization related to qualifying tax credit investments under PAM was recorded in Income tax expense on the Consolidated Statement of Income for the year ended December 31, 2024.

(4) Following the adoption of ASU 2023-02 on January 1, 2024, amortization related to qualifying tax credit investments under PAM was recorded in Income tax expense on the Consolidated Statement of Income for the years ended December 31, 2025 and 2024.

(5) Amortization related to tax credit and CRA investments was recognized in Amortization of tax credit and CRA investments as part of noninterest expense on the Consolidated Statement Income for the years ended December 31, 2025, 2024 and 2023.

(5) Includes impairment of $ 1 million for the year ended December 31, 2024, and net impairment recoveries of $ 1 million and $ 469 thousand for the years ended December 31, 2023 and 2022, respectively.

The activity was primarily related to historic and/or energy tax credits.

(6) Includes impairment charges of $ 1 million for the year ended December 31, 2024, and net impairment recoveries of $ 1 million for the year ended December 31, 2023.

The activity was primarily related to historic tax credits.

As of December 31, 2025, the Company’s unfunded commitments related to investments in affordable housing partnership, tax credit and CRA investments, net are estimated to be funded as follows:

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Total goodwill was $ 466 million as of both December 31, 2025 and 2024.

The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.

The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently if events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.

The Company completed its annual goodwill impairment test as of December 31, 2025 by using a qualitative assessment, and concluded goodwill was not impaired.

Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Goodwill to the Consolidated Financial Statements in this Form 10-K.

The Company has an equity method investment in Rayliant and its carrying value was $ 108 million as of December 31, 2024, of which $ 101 million was comprised of equity method goodwill.

As of December 31, 2025, the Company held an equity method investment totaling $ 108 million of which $ 101 million was comprised of equity method goodwill.

Note 9 — Deposits

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Total $ 25,284,814

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

The following table presents details of the Company’s BTFP borrowings, FHLB advances, and long-term debt as of December 31, 2024 and 2023:

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

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

($ in thousands) Interest Rate Maturity Dates Amount Amount

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5.53 % 12/15/2035 $ 32,320 $ 32,001

BTFP borrowings

4.37 % 3/19/2024 $ — $ 4,500,000

FHLB advances (2) :

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2026 750,000 500,000

Overnight (4)

4.02 % 1/2/2026 250,000 —

Total FHLB advances $ 3,000,000 $ 3,500,000

(1) As of December 31, 2024, the remaining junior subordinated debt outstanding was issued by MCBI Statutory Trust I that had a stated interest rate of 3-month CME Term Secured Overnight Financing Rate ("SOFR") + 1.81 %.

The weighted-average contractual interest rates for junior subordinated debt were 6.17 % and 6.87 % as of December 31, 2024 and 2023, respectively.

(1) As of December 31, 2025, the outstanding junior subordinated debt was issued by MCBI Statutory Trust I and had a stated interest rate of 3-month CME Term Secured Overnight Financing Rate ("SOFR") + 1.81 %.

The contractual interest rates for junior subordinated debt were 5.53 % and 6.17 % as of December 31, 2025 and 2024, respectively.

(2) The weighted-average interest rate for FHLB advances was 3.94 % as of December 31, 2025.

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

Bank Term Funding Program

As of December 31, 2023, the Company’s short-term borrowings consisted of funds from the BTFP, which were repaid upon maturity in March 2024.

(4) Overnight interest rates are based on the Standard Credit Program’s Advance Rate, as published by the FHLB.

FHLB Advances

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As of December 31, 2025, all advances were secured by real estate loans.

In comparison, there were no FHLB advances borrowings as of December 31, 2023 .

Long-Term Debt — Junior Subordinated Debt

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Interest payments on these securities are disbursed quarterly and are deductible for tax purposes.

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

The remaining outstanding principal amounts included $ 35 million of junior subordinated debt and $ 1 million of t rust preferred securities as of December 31, 2024.

Outstanding principal amounts included $ 35 million of junior subordinated debt and $ 1 million of t rust preferred securities as of December 31, 2025.

Note 11 — Income Taxes

The following table presents the components of income tax expense (benefit) for the years ended December 31, 2024, 2023 and 2022:

The following table presents the components of income before income taxes and income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

($ in thousands) 2025 2024 2023

Income before income taxes:

$ 1,686,561 $ 1,429,104 $ 1,425,756

Foreign 38,899 52,757 34,014

Total income before income taxes 1,725,460 1,481,861 1,459,770

Current income tax expense:

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Total deferred income tax benefit ( 7,775 ) ( 14,283 ) ( 49,139 )

( 14,283 ) ( 49,139 ) ( 43,988 )

Income tax expense $ 316,275 $ 298,609 $ 283,571

Total income tax expense:

Federal 230,279 159,801 148,109

State 162,188 148,309 149,665

Foreign 7,805 8,165 835

Total income tax expense $ 400,272 $ 316,275 $ 298,609

The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2025, 2024 and 2023:

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2025 2024 2023

($ in thousands) Amount Percent Amount Percent Amount Percent

Statutory U.S.

federal tax rate $ 362,347 21.0 % $ 311,191 21.0 % $ 306,552 21.0 %

state income taxes, net of U.S.

federal income tax effect 7.7 8.1 7.8

Tax credits and benefits, net of amortization

Tax credits (1)

Tax credits and benefits under the PAM, net of amortization ( 29,268 ) ( 1.7 ) ( 26,147 ) ( 1.8 ) ( 4,299 ) ( 0.3 )

Energy tax credit — solar

( 42,406 ) ( 2.5 ) ( 52,722 ) ( 3.5 ) ( 70,364 ) ( 4.8 )

Energy tax credit — energy storage

( 34,408 ) ( 2.0 ) ( 11,143 ) ( 0.7 ) — —

New markets tax credit — — — — ( 21,378 ) ( 1.5 )

Other tax credits ( 23,802 ) ( 1.4 ) ( 18,906 ) ( 1.3 ) ( 34,076 ) ( 2.3 )

Changes in valuation allowance 13,353 0.8 — — — —

Nontaxable or nondeductible items

Nondeductible FDIC insurance premiums 8,474 0.5 7,719 0.5 7,007 0.5

Other nontaxable or nondeductible items 4,899 0.3 ( 15,041 ) ( 1.0 ) 217 0.0

Other, net 7,549 0.4 ( 3,879 ) ( 0.3 ) ( 4,544 ) ( 0.3 )

state and local income taxes, net of U.S.

federal income tax effect (2)

125,638 7.3 116,091 7.8 118,236 8.1

Foreign tax effects 7,805 0.5 8,165 0.5 835 0.1

Changes in unrecognized tax benefits 91 0.0 947 0.1 423 0.0

Effective tax rate $ 400,272 23.2 % $ 316,275 21.3 % $ 298,609 20.5 %

(1) Following the adoption of ASU 2023-02 on January 1, 2024, the Company expanded the PAM to include qualifying investments in new markets, historic, production and energy tax credit programs, in addition to affordable housing partnerships.

(2) California state taxes made up the majority (greater than 50 percent) of state and local taxes.

The following table presents the income taxes paid (net of refunds received) by the Company for the years ended December 31, 2025, 2024 and 2023:

Year Ended December 31,

($ in thousands) 2025 2024 2023

Federal $ 65,981 $ 68,371 $ 140,000

California 120,000 102,061 100,000

New York 67,001 59,049 36,732

12,080 11,278 14,953

Foreign 13,120 6,186 —

Total $ 278,182 $ 246,945 $ 291,685

The following table summarizes the tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2025 and 2024:

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Lease liabilities 40,714 27,644

FDIC special assessment charge 16,843 22,212

Tax credit and capital loss carryforwards

51,193 11,122

Basis difference in investments

16,430 17,708

State capital loss and tax credit carryforwards

Nonaccrual loans’ interest income

State taxes 6,548 5,808

FDIC special assessment charge 2,615 16,843

Other 13,435 14,665

Total deferred tax assets $ 579,701 $ 601,410

Valuation allowance ( 13,353 ) —

Total deferred tax assets, net of valuation allowance $ 566,348 $ 601,410

Deferred tax liabilities:

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26,203 25,587

Net unrealized gains on derivative hedges

Equipment lease financing 7,206 10,395

Prepaid expenses 2,319 2,981

FHLB stock dividends 1,961 1,947

Mortgage servicing assets 1,678 2,102

Other 7,006 26,437

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The related unrecognized deferred tax liability on these earnings is immaterial.

As of December 31, 2024, the Company had deferred tax assets of $ 8 million and $ 3 million related to state capital loss carryforwards and state tax credit carryforwards, respectively.

These carryforwards are expected to be fully utilized before they start to expire in 2027.

As of both December 31, 2024 and 2023, the Company concluded that no valuation allowance was necessary to reduce the deferred tax assets since estimated future taxable income will be sufficient to utilize these assets.

As of December 31, 2025, the Company had deferred tax assets of $ 46 million related to tax credit carryforwards and $ 5 million related to state capital loss carryforwards.

The Company’s tax credit carryforwards included $ 13 million of foreign tax credits as of December 31, 2025, which may not be fully utilized before they expire in 2034.

The Company’s remaining carryforwards are expected to be fully utilized before they start to expire in 2028.

The Company concluded that a valuation allowance was necessary to reduce the deferred tax assets associated with the foreign tax credits and recorded a $ 13 million valuation allowance as of December 31, 2025.

For the remaining deferred tax assets it is more likely than not that there will be sufficient taxable income of appropriate nature in future years to realize these assets.

For further information on the Company’s valuation policy on deferred taxes, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Income Taxes to the Consolidated Financial Statements in this Form 10-K.

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Additions for tax positions related to prior years — 2,698 (1)

Deductions for tax positions related to prior years ( 446 ) — —

Additions for tax positions related to current year 547 779 257

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(1) In 2024, the increase in positions related to prior years primarily related to proposed adjustments resulting from examination of the Company’s state tax returns.

(2) In 2022, the Company settled an issue regarding previously claimed tax credits related to DC Solar and affiliates.

(2) In 2025, the Company settled an issue related to the examination of the Company’s prior years’ state tax returns.

The Company recognizes interest and penalties, as applicable, related to the underpayment of income taxes as a component of Income tax expense on the Consolidated Statement of Income.

The Company recorded net interest expense of $ 1 million for the year ended December 31, 2024.

In comparison, the net interest and penalties related to unrecognized tax benefits were immaterial for the years ended December 31, 2023 and 2022.

Total accrued interest included in Accrued expenses and other liabilitie s on the Consolidated Balance Sheet was $ 1 million as of December 31, 2024 and immaterial as of December 31, 2023.

The Company recorded net interest expense of $ 1 million for each of the years ended December 31, 2025 and 2024.

In comparison, net interest and penalties expense was immaterial for the year ended 2023.

Total accrued interest included in Accrued expenses and other liabilitie s on the Consolidated Balance Sheet was $ 232 thousand and $ 1 million as of December 31, 2025 and 2024, respectively.

The Company files federal income tax returns, as well as returns in various state and foreign jurisdictions.

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With few exceptions, the Company is also subject to tax examination in various state and local jurisdictions for the tax years 2021 and forward.

The Company does not believe that the outcome of unresolved issues or claims in any of the tax jurisdictions is likely to be material on the Company’s Consolidated Financial Statements.

The Company does not believe that the outcome of unresolved issues or claims in any of the tax jurisdictions is likely to have a material impact on the Company’s Consolidated Financial Statements.

The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with ASC 740, Income Taxes as of December 31, 2025.

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These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements.

While the Company does not anticipate losses from these transactions, commitments to extend credit are included in determining the appropriate level of allowance for unfunded credit commitments.

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

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Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments, and amounted to $ 49 million and $ 39 million as of December 31, 2025 and 2024, respectively.

Guarantees — From time to time, the Company sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business.

For further information on the allowance for unfunded credit commitments, refer to Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-K

Guarantees — The Company occasionally sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business.

The Company is obligated to repurchase up to the recourse component of the loans if the loans default.

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2025 2024 2025 2024

($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Total Total

($ in thousands) Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Total Total

Single-family residential loans sold or securitized with recourse $ 15 $ 323 $ 2,799 $ 3,137 $ 4,375 $ 3,137 $ 4,375

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(1) Represents the unpaid principal balance.

The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $ 34 thousand and $ 40 thousand as of December 31, 2024 and 2023, respectively.

The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse.

The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse and recorded an immaterial recourse reserve as of December 31, 2025 and 2024.

Litigation — The Company is a party to various legal actions arising in the ordinary course of its business.

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There were no outstanding awards other than RSUs as of December 31, 2025, 2024 and 2023.

An aggregate of 17 million shares of common stock were authorized under the 2021 Stock Incentive Plan, and the total number of shares available for grant was approximately 4 million as of December 31, 2024.

The total number of shares available for grant under the 2021 Stock Incentive Plan was approximately 3 million as of December 31, 2025.

The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2025, 2024 and 2023:

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Dividends are accrued during the vesting period and paid at the time of vesting.

While a portion of RSUs are time-based vesting awards, others vest subject to attainment of additional specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation and Management Development Committee based on the performance in the year prior to the grant date of the award.

The number of awards that vest can range from zero percent to a maximum of 200 % of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years .

While a portion of RSU grants are time-based vesting awards, other RSUs vest subject to the attainment of additional specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation and Management Development Committee based on the performance in the year prior to the grant date of the award.

The number of awards that vest can range from 0 % to a maximum of 200 % of the target number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years .

For information on accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements in this Form 10-K.

The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that were settled in shares for the year ended December 31, 2024.

The following table presents a summary of the activities for the Company’s time- and performance-based RSUs that were settled in shares for the year ended December 31, 2025.

The number of performance-based RSUs stated below reflects the number of awards granted on the grant date:

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The total fair value of performance-based RSUs that vested during the years ended December 31, 2025, 2024, and 2023 was $ 14 million, $ 12 million and $ 21 million, respectively.

As of December 31, 2024, there were $ 34 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.79 years, and $ 16 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.13 years.

As of December 31, 2025, there was $ 35 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.8 years, and $ 5 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.8 years.

Employee Stock Purchase Plan — The 1998 Employee Stock Purchase Plan (the “Purchase Plan”) provides eligible employees of the Company the right to purchase shares of its common stock at a discount.

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Net income $ 1,325,188 $ 1,165,586 $ 1,161,161

Weighted-average number of shares outstanding 138,898 141,164 141,326

Basic weighted-average number of shares outstanding

138,898 141,164

Basic EPS $ 9.58 $ 8.39 $ 8.23

Net income $ 1,325,188 $ 1,165,586 $ 1,161,161

Weighted-average number of shares outstanding 138,898 141,164 141,326

Diluted impact of unvested RSUs 1,060 738 1,166

Diluted weighted-average number of shares outstanding 139,958 141,902 142,492

Diluted EPS $ 8.33 $ 8.18 $ 7.92

Approximately six thousand, 283 thousand and three thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computation for the years ended December 31, 2024, 2023 and 2022,respectively.

Stock Repurchase Program — In 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $ 500 million of the Company’s common stock.

The following table presents the activity under the Company’s common share repurchase program for the periods indicated:

Year Ended December 31,

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

Average Price per Share

2024 1,943,346 $ 74.33 $ 144,446

Fair value changes of liability-classified equity contracts, net of tax (2)

Net income, diluted

$ 1,324,192 $ 1,165,586 $ 1,161,161

Basic weighted-average number of shares outstanding

138,898 141,164

Dilutive impact of unvested RSUs and liability-classified equity contracts that are share-settled 788 1,060 738

Diluted weighted-average number of shares outstanding 139,130 139,958 141,902

Diluted EPS $ 9.52 $ 8.33 $ 8.18

(1) Includes retirement-eligible employees’ awards.

(2) Applied blended statutory tax rate of 28.02 % for the year ended December 31, 2025.

Approximately nine thousand, six thousand and 283 thousand weighted-average shares of anti-dilutive RSUs were excluded from the diluted EPS computation for the years ended December 31, 2025, 2024 and 2023, respectively.

Stock Repurchase Program — On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to $ 300 million of its common stock.

The Company repurchased $ 115 million and $ 144 million of its common stock in the years ended December 31, 2025 and 2024, respectively.

All repurchases were made on the open market at currently prevailing prices.

Note 15 — Accumulated Other Comprehensive (Loss) Income

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Balance, December 31, 2022 $ ( 694,815 ) $ ( 49,531 ) $ ( 21,283 ) $ ( 765,629 )

Net unrealized losses arising during the period ( 620,870 ) ( 52,623 ) ( 16,348 ) ( 689,841 )

Net unrealized gains (losses) arising during the period

76,930 ( 4,277 ) ( 56 ) 72,597

Amounts reclassified from AOCI 16,004 56,432 — 72,436

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Balance, December 31, 2024 $ ( 542,152 ) $ ( 20,787 ) $ ( 22,321 ) $ ( 585,260 )

Net unrealized gains (losses) arising during the period 50,302 ( 87,447 ) ( 982 ) ( 38,127 )

Net unrealized gains arising during the period

177,668 34,108 1,734 213,510

Amounts reclassified from AOCI 11,252 14,888 — 26,140

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

(2) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S.

(2) Represents foreign currency translation adjustments related to the Company’s net investments in non-U.S.

operations, including related hedges.

The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

The following table presents the components of other comprehensive (loss) income, reclassifications to net income and the related tax effects for the years ended December 31, 2025, 2024 and 2023:

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Debt securities:

Net unrealized gains (losses) on AFS debt securities arising during the period $ 71,259 $ ( 20,957 ) $ 50,302 $ 109,216 $ ( 32,286 ) $ 76,930 $ ( 721,100 ) $ 213,221 $ ( 507,879 )

Unrealized losses on debt securities transferred from AFS to HTM — — — — — — ( 160,416 ) 47,425 ( 112,991 )

Net unrealized gains on AFS debt securities arising during the period

$ 252,366 $ ( 74,698 ) $ 177,668 $ 71,259 $ ( 20,957 ) $ 50,302 $ 109,216 $ ( 32,286 ) $ 76,930

Reclassification adjustments:

Net realized (gains) losses on AFS debt securities reclassified into net income (1)

Net realized losses (gains) on AFS debt securities reclassified into net income (1)

937 ( 277 ) 660 ( 2,069 ) 612 ( 1,457 ) 6,862 (2)

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Cash flow hedges:

Net unrealized losses arising during the period ( 124,382 ) 36,935 ( 87,447 ) ( 5,767 ) 1,490 ( 4,277 ) ( 74,069 ) 21,446 ( 52,623 )

Net unrealized gains (losses) arising during the period

48,016 ( 13,908 ) 34,108 ( 124,382 ) 36,935 ( 87,447 ) ( 5,767 ) 1,490 ( 4,277 )

Net realized losses reclassified into net income (4)

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Foreign currency translation adjustments, net of hedges:

Net unrealized (losses) gains arising during the period

Net unrealized gains (losses) arising during the period

1,641 93 1,734 ( 809 ) ( 173 ) ( 982 ) 698 ( 754 ) ( 56 )

Net change 1,641 93 1,734 ( 809 ) ( 173 ) ( 982 ) 698 ( 754 ) ( 56 )

Other comprehensive income (loss) $ 50,534 $ ( 15,198 ) $ 35,336 $ 206,712 $ ( 61,679 ) $ 145,033 $ ( 949,946 ) $ 274,698 $ ( 675,248 )

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

Other comprehensive income

$ 338,957 $ ( 99,307 ) $ 239,650 $ 50,534 $ ( 15,198 ) $ 35,336 $ 206,712 $ ( 61,679 ) $ 145,033

(1) Pre-tax amounts were reported in Net gains (losses) on AFS debt securities and Provision for Credit Losses on the Consolidated Statement of Income Refer to Note 4 — Securities — Realized Gains and Credit Losses for further details.

(2) Represents the net loss related to an AFS debt security that was written-off in the first quarter of 2023 and subsequently sold during the fourth quarter of 2023.

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

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

(4) Pre-tax amounts related to cash flow hedges on variable rate loans and long-term borrowings, where applicable, were reported in Interest and dividend income and in Interest expense, respectively , on the Consolidated Statement of Income.

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The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2025 and 2024:

December 31, 2024 (1)

December 31, 2023 (1)

December 31, 2025 December 31, 2024 (1)

($ in thousands) Amount Ratio Amount Ratio Minimum Regulatory Requirements Minimum Regulatory Requirements including Capital Conservation Buffer (3)

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(2) The well-capitalized requirements for CET1 capital and Tier 1 leverage capital apply only to the Bank since there is no CET1 capital ratio or Tier 1 leverage capital ratio component in the definition of a well-capitalized bank holding company.

(3) Includes a 2.5 % capital conservation buffer requirement above the minimum risk-based capital ratios.

(3) Includes a 2.5 % capital conservation buffer requirement above the minimum risk-based capital ratios, where applicable.

Note 17 — Business Segments

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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.

The CODM is the Chairman and Chief Executive Officer (“CEO”) of the Company.

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

The chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer of the Company.

The CODM regularly reviews the Company’s operating results to allocate resources and assess performance.

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Other products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services.

The Commercial Banking segment primarily generates 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.

The remaining 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.

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

The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company.

The Company’s internal reporting process consists of certain allocation methodologies for revenues and expenses, and the internal funds transfer pricing (“FTP”) process.

The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability.

The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of business segment net interest margins and profitability.

The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates.

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Amortization of tax credit and CRA investments and certain types of administrative expenses are generally not allocated to segments.

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

Balances for the prior years have been reclassified for comparability.

The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2025, 2024 and 2023:

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Year Ended December 31, 2025

Net interest income before provision for credit losses $ 1,152,033 $ 1,125,931 $ 752 $ 2,278,716

Net interest income before provision for (reversal of) credit losses

$ 1,079,288 $ 1,028,314 $ 445,027 $ 2,552,629

Noninterest income 120,779 218,177 40,271 379,227

Total revenue before provision for credit losses 1,260,806 1,323,711 29,417 2,613,934

Total revenue before provision for (reversal of) credit losses

1,200,067 1,246,491 485,298 2,931,856

Provision for (reversal of) credit losses

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Total noninterest expense 470,333 403,919 172,144 1,046,396

Segment income (loss) before income taxes 800,009 760,549 ( 78,697 ) 1,481,861

Segment income before income taxes

703,690 690,487 331,283 1,725,460

Segment net income $ 502,687 $ 493,508 $ 328,993 $ 1,325,188

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Year Ended December 31, 2024

Net interest income (loss) before provision for credit losses $ 1,225,954 $ 1,116,013 $ ( 29,713 ) $ 2,312,254

Net interest income before provision for (reversal of) credit losses

$ 1,152,033 $ 1,125,931 $ 752 $ 2,278,716

Noninterest income 108,773 197,780 28,665 335,218

Total revenue (loss) before provision for credit losses 1,329,844 1,284,515 ( 6,841 ) 2,607,518

Provision for credit losses 21,454 100,391 3,155 125,000

Total revenue before provision for (reversal of) credit losses

1,260,806 1,323,711 29,417 2,613,934

Provision for (reversal of) credit losses

8,691 166,953 ( 1,644 ) 174,000

Compensation and employee benefits 217,612 234,240 98,882 550,734

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Segment income (loss) before income taxes 800,009 760,549 ( 78,697 ) 1,481,861

Segment net income (loss) $ 594,965 $ 570,153 $ ( 3,957 ) $ 1,161,161

Segment net income $ 563,218 $ 535,652 $ 66,716 $ 1,165,586

Average balances:

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Noninterest income 103,210 168,502 21,400 293,112

Total revenue before provision for credit losses 1,174,960 1,162,523 7,064 2,344,547

Provision for (reversal of) credit losses 25,983 48,248 ( 731 ) 73,500

Total revenue (loss) before provision for credit losses 1,329,164 1,284,515 ( 8,313 ) 2,605,366

Provision for credit losses 21,454 100,391 3,155 125,000

Compensation and employee benefits 203,387 217,663 87,488 508,538

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Segment income (loss) before income taxes 842,917 807,512 ( 190,659 ) 1,459,770

Segment net income $ 537,754 $ 569,982 $ 20,347 $ 1,128,083

Segment net income (loss) $ 594,965 $ 570,153 $ ( 3,957 ) $ 1,161,161

Average balances:

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Segment assets $ 19,165,172 $ 35,020,106 $ 15,427,606 $ 69,612,884

(1) The Treasury and Other segment's other noninterest expense is primarily comprised of amortization of tax credit and CRA investments, and other operating expenses.

The Consumer and Business Banking segment's other noninterest expense is primarily comprised of corporate overhead allocated expenses, occupancy and equipment expense, other operating expenses, and deposit insurance premiums and regulatory assessments.

The Commercial Banking segment’s other noninterest expense is primarily comprised of corporate overhead allocated expenses, deposit account expense, occupancy and equipment expense, and deposit insurance premiums and regulatory assessments.

(1) The Consumer and Business Banking segment's other noninterest expense is primarily comprised of corporate overhead allocated expenses, occupancy and equipment expense, and other operating expenses.

The Commercial Banking segment’s other noninterest expense is primarily comprised of corporate overhead allocated expenses, deposit account expense, and other operating expenses.

The Treasury and Other segment's other noninterest expense is primarily comprised of amortization of tax credit and CRA investments, and other operating expenses, net of any corporate overhead expenses allocated to other segments.

Note 18 — Parent Company Condensed Financial Statements

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($ in thousands) 2025 2024

Cash and cash equivalents due from banks

Cash and cash equivalents

$ 664,002 $ 394,919

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Nonbank 66 127 322

Other investment losses ( 954 ) ( 2,738 ) —

Other investment income (losses) (1)

2,115 ( 954 ) ( 2,738 )

Other income 714 31 —

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Net income $ 1,325,188 $ 1,165,586 $ 1,161,161

(1) Includes $ 3 million and $ 2 million in DC Solar recoveries for the years ended December 31, 2023 and 2022, respectively.

(1) Includes $ 1 million in DC Solar recoveries for the year ended December 31, 2025.

(2) Includes $ 307 thousand and $ 3 million in DC Solar recoveries for the years ended December 31, 2025 and 2023, respectively.

CONDENSED STATEMENT OF CASH FLOWS

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Undistributed earnings of subsidiaries, principally bank ( 584,292 ) ( 635,868 ) ( 470,740 )

Deferred income tax expense (benefit) 2,788 948 ( 2,193 )

Deferred income tax expense 62 2,788 948

Net change in other assets ( 5,549 ) ( 6,912 ) ( 4,160 )

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CASH FLOWS FROM INVESTING ACTIVITIES

AFS debt securities:

Proceeds from maturities

1,945,000 — —

( 1,944,333 ) — —

Redemption of trust preferred securities — 3,558 —

Other investing activities, net ( 732 ) ( 494 ) ( 95,095 )

Net cash provided by (used in) investing activities

3,064 ( 95,095 ) ( 7,390 )

Net cash (used in) provided by investing activities ( 65 ) 3,064 ( 95,095 )

CASH FLOWS FROM FINANCING ACTIVITIES

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Net cash used in financing activities ( 465,658 ) ( 579,972 ) ( 377,271 )

Net (decrease) increase in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

269,083 ( 50,851 ) 217,239

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Note 19 — Subsequent Events

Declaration of Dividend and Repurchase Authorization — On January 23, 2025, the Company’s Board of Directors declared first quarter 2025 cash dividends for the Company’s common stock.

On January 22, 2026, the Company’s Board of Directors declared first quarter 2026 cash dividends for the Company’s common stock.

The common stock cash dividend of $ 0.80 per share was paid on February 17, 2026 to stockholders of record as of February 2, 2026.

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

Southern California Wildfires — In January 2025, several wildfires affected Los Angeles and its surrounding areas.

Based on the Company’s assessment of available information regarding its loan portfolio and related collateral within the affected areas, the Company has determined that the impact to its consolidated financial statements is immaterial through the date of filing of this Form 10-K.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

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 8. Financial Statements and Supplementary Data