EAST WEST BANCORP INC 10-K

ITEM 8. FINANCIAL STATEMENTS TABLE OF CONTENTS Page REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 77 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets 80 Consolidated Statement of Income 81 Consolidated Statement of Comprehensive Income 82 Consolidated Statement of Changes in Stockholders’ Equity 83 Consolidated Statement of Cash Flows 84 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1 — Summary of Significant Accounting Policies 86 2 — Fair Value Measurement and Fair Value of Financial Instruments 97 3 — Securities Purchased under Resale Agreements 107 4 — Securities 108 5 — Derivatives 115 6 — Loans Receivable and Allowance for Credit Losses 121 7 — Affordable Housing Partnerships, Tax Credit and Community Reinvestment Act Investments, Net 137 8 — Goodwill 139 9 — Deposits 139 10 — Federal Home Loan Bank Advances and Long-Term Debt 140 11 — Income Taxes 141 12 — Commitments and Contingencies 144 13 — Stock Compensation Plans 146 1 4 — Stockholders’ Equity and Earnings Per Share 147 15 — Accumulated Other Comprehensive (Loss) Income 148 1 6 — Regulatory Requirements and Matters 149 1 7 — Business Segments 150 1 8 — Parent Company Condensed Financial Statements 153 19 — Subsequent Events 155 76 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and Board of Directors East West Bancorp, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of East West Bancorp, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three‑year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 27, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. 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 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, 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 77 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. The Company’s C&I lifetime loss rate model estimated credit losses by estimating a loss rate expected over the life of a loan which is applied to the amortized cost basis, excluding accrued interest receivables, to determine expected credit losses. The Company’s CRE model applies projected probability of defaults (“PDs”) and loss given defaults (“LGDs”) to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss. The Company incorporated forward-looking information using macroeconomic scenarios, which included variables that are considered key drivers of increases and decreases in credit losses. A probability-weighted multiple scenario forecast over a reasonable and supportable forecast period is incorporated into both the quantitative models. The Company’s C&I lifetime loss rate model reverts to the historical average loss rate, expressed through the loan-level lifetime loss rate, after the reasonable and supportable forecast period. The Company’s CRE model considers the contractual life of the loans and the forecast of future economic conditions return to long-run historical economic trends within the reasonable and supportable period. 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 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 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 ALLL estimates, including controls over the: • development of the commercial collective ALLL methodology • continued use and appropriateness of changes made to the quantitative models • performance monitoring of the quantitative models • identification and determination of the significant data elements and assumptions used in the quantitative models • development of the qualitative component • 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 ALLL methodology for compliance with U.S. generally accepted accounting principles • evaluating judgments made by the Company relative to the assessment, conceptual soundness and performance testing of the quantitative models, which are based on historical loss experience by comparing them to relevant Company-specific metrics and trends and the applicable industry and regulatory practices • evaluating the judgments made by the Company in selecting the macroeconomic forecast scenarios, including the reasonable and supportable period and the related probability-weighted macroeconomic forecast scenarios 78 • 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 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 • qualitative aspects of the Company’s accounting practices • potential bias in accounting estimates. /s/ KPMG LLP We have served as the Company’s auditor since 2009. Los Angeles, California February 27, 2026 79 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except shares) December 31, 2025 2024 ASSETS Cash and due from banks $ 656,125 $ 360,734 Interest-bearing cash with banks 3,532,014 4,890,008 Cash and cash equivalents 4,188,139 5,250,742 Interest-bearing deposits with banks 16,189 48,198 Securities purchased under resale agreements (“resale agreements”) 425,000 425,000 Debt securities: Available-for-sale (“AFS”), at fair value (amortized cost of $ 13,619,781 and $ 11,505,775 ) 13,212,220 10,846,811 Held-to-maturity (“HTM”), at amortized cost (fair value of $ 2,479,746 and $ 2,387,754 ) 2,870,058 2,917,413 Loans held-for-sale 20,976 — 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 Affordable housing partnership, tax credit and Community Reinvestment Act (“CRA”) investments, net 969,492 926,640 Premises and equipment (net of accumulated depreciation of $ 175,297 and $ 166,154 ) 82,310 82,233 Operating lease right-of-use assets 125,407 81,967 Goodwill 465,697 465,697 Other assets 1,991,110 1,907,189 TOTAL $ 80,434,997 $ 75,976,475 LIABILITIES Deposits: Noninterest-bearing $ 16,697,099 $ 15,450,428 Interest-bearing 50,385,602 47,724,595 Total deposits 67,082,701 63,175,023 Federal Home Loan Bank (“FHLB”) advances 3,000,000 3,500,000 Long-term debt and finance lease liabilities 35,645 35,974 Operating lease liabilities 138,206 89,263 Accrued expenses and other liabilities 1,279,243 1,453,161 Total liabilities 71,535,795 68,253,421 COMMITMENTS AND CONTINGENCIES (Note 12) STOCKHOLDERS’ EQUITY Common stock, $ 0.001 par value, 200,000,000 shares authorized; 170,487,574 and 169,925,379 shares issued 170 170 Additional paid-in capital 2,111,316 2,030,712 Retained earnings 8,301,522 7,311,542 Treasury stock, at cost 32,908,712 and 31,488,080 shares ( 1,168,196 ) ( 1,034,110 ) Accumulated other comprehensive loss (“AOCI”), net of tax ( 345,610 ) ( 585,260 ) Total stockholders’ equity 8,899,202 7,723,054 TOTAL $ 80,434,997 $ 75,976,475 See accompanying Notes to Consolidated Financial Statements. 80 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME ($ and shares in thousands, except per share data) Year Ended December 31, 2025 2024 2023 INTEREST AND DIVIDEND INCOME Loans receivable, including fees $ 3,494,661 $ 3,490,979 $ 3,172,746 Debt securities 621,937 449,065 276,190 Resale agreements 6,475 11,254 20,164 Restricted equity securities 11,242 10,104 4,062 Interest-bearing cash and deposits with banks 159,081 231,794 220,643 Total interest and dividend income 4,293,396 4,193,196 3,693,805 INTEREST EXPENSE Deposits 1,594,529 1,720,174 1,205,550 Federal funds purchased and other short-term borrowings 22 42,163 157,002 FHLB advances 141,472 147,269 6,430 Securities sold under repurchase agreements (“repurchase agreements”) 2,082 197 1,497 Long-term debt and finance lease liabilities 2,662 4,677 11,072 Total interest expense 1,740,767 1,914,480 1,381,551 Net interest income before provision for credit losses 2,552,629 2,278,716 2,312,254 Provision for credit losses 160,000 174,000 125,000 Net interest income after provision for credit losses 2,392,629 2,104,716 2,187,254 NONINTEREST INCOME 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, net of mark-to-market adjustments 16,856 16,401 20,200 Net gains (losses) on AFS debt securities 963 2,069 ( 6,862 ) Other investment income 10,868 5,611 9,348 Other income 21,803 15,570 17,469 Total noninterest income 379,227 335,218 293,112 NONINTEREST EXPENSE Compensation and employee benefits 618,753 550,734 508,538 Occupancy and equipment expense 66,129 64,399 64,528 Deposit account expense 35,218 47,390 43,143 Computer and software related expenses 54,737 47,271 44,475 Deposit insurance premiums and regulatory assessments 31,725 45,736 103,308 Other operating expense 165,039 148,301 136,305 Amortization of tax credit and CRA investments 74,795 54,242 120,299 Total noninterest expense 1,046,396 958,073 1,020,596 INCOME BEFORE INCOME TAXES 1,725,460 1,481,861 1,459,770 Income tax expense 400,272 316,275 298,609 NET INCOME $ 1,325,188 $ 1,165,586 $ 1,161,161 EARNINGS PER SHARE (“EPS”) BASIC $ 9.58 $ 8.39 $ 8.23 DILUTED $ 9.52 $ 8.33 $ 8.18 WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING BASIC 138,342 138,898 141,164 DILUTED 139,130 139,958 141,902 See accompanying Notes to Consolidated Financial Statements. 81 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ($ in thousands) Year Ended December 31, 2025 2024 2023 Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 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 239,650 35,336 145,033 COMPREHENSIVE INCOME $ 1,564,838 $ 1,200,922 $ 1,306,194 See accompanying Notes to Consolidated Financial Statements. 82 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY ($ in thousands, except shares and per share data) Common Stock and Additional Paid-in Capital Shares Amount Retained Earnings Treasury Stock AOCI, Net of Tax Total Stockholders’ Equity 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 income — — — — 145,033 145,033 Issuance of common stock pursuant to various stock compensation plans and agreements 913,185 44,430 — — — 44,430 Repurchase of common stock pursuant to various stock compensation plans and agreements ( 327,573 ) — — ( 23,751 ) — ( 23,751 ) Repurchase of common stock pursuant to the stock repurchase program ( 1,506,091 ) — — ( 82,174 ) — ( 82,174 ) Cash dividends on common stock ($ 1.92 per share) — — ( 274,215 ) — — ( 274,215 ) BALANCE, DECEMBER 31, 2023 140,027,367 $ 1,980,987 $ 6,465,230 $ ( 874,787 ) $ ( 620,596 ) $ 6,950,834 Cumulative-effect of change in accounting principle (2) — — ( 9,482 ) — — ( 9,482 ) Net income — — 1,165,586 — — 1,165,586 Other comprehensive income — — — — 35,336 35,336 Issuance of common stock pursuant to various stock compensation plans and agreements 553,149 49,895 — — — 49,895 Repurchase of common stock pursuant to various stock compensation plans and agreements ( 199,871 ) — — ( 14,877 ) — ( 14,877 ) Repurchase of common stock pursuant to the stock repurchase program ( 1,943,346 ) — — ( 144,446 ) — ( 144,446 ) Cash dividends on common stock ($ 2.20 per share) — — ( 309,792 ) — — ( 309,792 ) BALANCE, DECEMBER 31, 2024 138,437,299 $ 2,030,882 $ 7,311,542 $ ( 1,034,110 ) $ ( 585,260 ) $ 7,723,054 Net income — — 1,325,188 — — 1,325,188 Other comprehensive income — — — — 239,650 239,650 Issuance of common stock pursuant to various stock compensation plans and agreements 562,195 80,604 — — — 80,604 Repurchase of common stock pursuant to various stock compensation plans and agreements ( 208,108 ) — — ( 19,156 ) — ( 19,156 ) Repurchase of common stock pursuant to the stock repurchase program ( 1,212,524 ) — — ( 114,930 ) — ( 114,930 ) Cash dividends on common stock ($ 2.40 per share) — — ( 335,208 ) — — ( 335,208 ) 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 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. (2) Represents the impact of the adoption of ASU 2023-02 , Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method on January 1, 2024. See accompanying Notes to Consolidated Financial Statements. 83 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS ($ in thousands) Year Ended December 31, 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 160,000 174,000 125,000 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) losses on AFS debt securities ( 963 ) ( 2,069 ) 6,862 Net losses (gains) on other real estate owned (“OREO”) write-downs and sales 10,275 7,275 ( 3,451 ) Loans held-for-sale: 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 — Net change in accrued interest receivable and other assets ( 97,306 ) 63,743 ( 146,270 ) Net change in accrued expenses and other liabilities ( 167,970 ) ( 242,443 ) 105,304 Other operating activities, net ( 9,099 ) 1,846 11,508 Total adjustments 176,512 246,081 263,748 Net cash provided by operating activities 1,501,700 1,411,667 1,424,909 CASH FLOWS FROM INVESTING ACTIVITIES Net (increase) decrease in: Affordable housing partnership, tax credit and CRA investments ( 351,786 ) ( 378,305 ) ( 228,550 ) Interest-bearing deposits with banks 33,115 ( 38,352 ) 128,523 Assets purchased under resale agreements: Proceeds from paydowns and maturities — 360,000 219,917 Purchases — — ( 212,725 ) AFS debt securities: Proceeds from sales 952,413 1,428,829 3,138 Proceeds from repayments, maturities and redemptions 3,851,138 1,547,058 1,470,819 Purchases ( 6,939,256 ) ( 7,599,454 ) ( 1,549,846 ) Loans held-for-investment: Proceeds from sales of loans originally classified as held-for-investment 310,408 715,088 711,862 Purchases ( 963,327 ) ( 1,000,637 ) ( 600,930 ) Other changes in loans held-for-investment, net ( 2,486,715 ) ( 1,341,549 ) ( 4,166,572 ) Proceeds from sales of OREO and other foreclosed assets 36,122 33,055 3,721 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 ) Net cash used in investing activities ( 5,476,505 ) ( 6,295,203 ) ( 4,247,161 ) See accompanying Notes to Consolidated Financial Statements. 84 EAST WEST BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS ($ in thousands) (Continued) Year Ended December 31, 2025 2024 2023 CASH FLOWS FROM FINANCING ACTIVITIES Net change in deposits 3,863,717 7,108,377 144,468 Net change in short-term borrowings 2 ( 4,500,000 ) 4,500,000 FHLB advances: Proceeds 2,500,000 4,000,400 6,000,000 Repayments ( 3,000,000 ) ( 500,400 ) ( 6,000,000 ) Repurchase agreements: Repayment — — ( 300,000 ) Extinguishment cost — — ( 3,872 ) Repayment of lease liabilities and junior subordinated debt ( 836 ) ( 117,437 ) ( 871 ) Common stock: Proceeds from issuance pursuant to various stock compensation plans and agreements 3,212 3,023 3,208 Stock tendered for payment of withholding taxes ( 19,239 ) ( 14,877 ) ( 23,751 ) Repurchase of common stock pursuant to the stock repurchase program ( 115,590 ) ( 143,082 ) ( 82,174 ) Cash dividends paid ( 334,041 ) ( 308,478 ) ( 274,554 ) Net cash provided by financing activities 2,897,225 5,527,526 3,962,454 Effect of exchange rate changes on cash and cash equivalents 14,977 ( 8,232 ) ( 7,002 ) 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 CASH AND CASH EQUIVALENTS, END OF YEAR $ 4,188,139 $ 5,250,742 $ 4,614,984 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid during the year for: Interest $ 1,742,199 $ 2,057,967 $ 1,213,319 Income taxes, net $ 278,182 $ 246,945 $ 291,685 Noncash investing and financing activities: Loans transferred from held-for-investment to held-for-sale $ 331,227 $ 659,322 $ 739,379 Loans transferred to OREO or other foreclosed assets $ 33,513 $ 67,379 $ 11,141 See accompanying Notes to Consolidated Financial Statements. 85 EAST WEST BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 — Summary of Significant Accounting Policies Organization East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The Bank is the Company’s principal asset. 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 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 Basis of Presentation — The accounting and reporting policies of the Company conform with the U.S. Generally Accepted Accounting Principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and common practices in the banking industry. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting period, and the related disclosures. Actual results could differ materially from those estimates. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2025 presentation. Principles of Consolidation — The Consolidated Financial Statements in this Form 10-K include the accounts of East West and its subsidiaries that are majority owned and in which the Company has a controlling financial interest, and variable interest entities (“VIE”) in which the Company has determined to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. 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. 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. 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 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, 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. 86 Assets Purchased under Resale Agreements and Securities Sold under Repurchase Agreements — Resale agreements are recorded as receivables based on the values at which the securities or loans are acquired. Repurchase agreements are accounted for as collateralized financing transactions and recorded as liabilities based on the values at which the securities are sold. The Company monitors the values of the underlying assets collateralizing the resale and repurchase agreements, including accrued interest, and obtains or posts additional collateral in order to maintain the appropriate collateral requirements for the transactions. For allowance for credit losses on resale agreements, refer to the Allowance for Collateral-Dependent Financial Assets section of this note for details. Debt Securities — Debt securities are recorded on the Consolidated Balance Sheet as of their trade dates. The Company initially classifies its debt securities as trading securities, AFS or HTM debt securities based on management’s intention on the date of the purchase. Debt securities are purchased for liquidity and investment purposes, as part of asset/liability management and other strategic activities. Debt securities for which the Company has the positive intention and ability to hold until maturity are classified as HTM and are carried at amortized cost, net of allowance for credit losses. Debt securities not classified as trading securities or HTM securities are classified as AFS. AFS debt securities are reported at fair value, net of the allowance for credit losses, with unrealized gains and losses recorded in AOCI, net of applicable income taxes. 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 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. Upon transfer of a debt security from the AFS to HTM category, the security’s new amortized cost is reset to fair value, reduced by any previous write-offs but excluding any allowance for credit losses. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income over the remaining life of the securities as effective yield adjustments, in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. For transfers of securities from the AFS to HTM category, any allowance for credit losses that was previously recorded under the AFS model is reversed and an allowance for credit losses is subsequently recorded under the HTM debt security model. The reversal and re-establishment of the allowance for credit losses are recorded in the provision for credit losses. 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 include mutual fund investments, which are included in Affordable housing partnership, tax credit and CRA investments, net on the Consolidated Balance Sheet. Non-marketable equity securities including tax credit investments, and other equity investments that do not have readily determinable fair values are recorded in Affordable housing partnership, tax credit and CRA investments, net, and Other assets on the Consolidated Balance Sheet and are accounted for under one of the following accounting methods: • 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. These investments are held at their cost minus impairment. If impaired, the carrying value is written down to the fair value of the security. • Measurement Alternative — This method is applied to all remaining non-marketable equity securities. These securities are carried at cost adjusted for impairment, if any, plus or minus observable price changes in orderly transactions of an identical or similar security of the same issuer. 87 The Company’s impairment review for equity method, cost method and measurement alternative securities typically includes an analysis of the facts and circumstances of each security, the intent or requirement to sell the security, the expectations of cash flows, capital needs and the viability of its business model. For equity and cost method investments, the Company reduces the asset’s carrying value when the Company considers declines in value to be other-than-temporary impairment (“OTTI”). For securities accounted for under the measurement alternative, the Company reduces the asset value when the fair value is less than the carrying value, without the consideration of recovery. Loans Held-for-Sale — Loans are initially classified as loans held-for-sale when they are individually identified as being available for immediate sale and management has committed to a formal plan to sell them. Loans held-for-sale are carried at lower of cost or fair value. 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 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. 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 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. The deferred net loan fees and costs are recognized in interest income as an adjustment to yield over the loan term using the effective interest method. Discounts/premiums on purchased loans are accreted/amortized to interest income using the effective interest method over the remaining contractual maturity. Interest on loans is calculated using the simple-interest method on daily balances of the principal amounts outstanding. Generally, loans are placed on nonaccrual status when they become 90 days past due or more. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes uncertain, regardless of the length of past due status. Once a loan is placed on nonaccrual status, interest accrual is discontinued and all unpaid accrued interest is reversed against interest income. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income. A loan is returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. Loan Modifications — The Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made to borrowers experiencing financial difficulty. Under ASC 310-20-35-9 to 310-20-35-10, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; 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 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. 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. 88 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 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 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. Models consisting of quantitative and qualitative components are designed for each pool to develop the expected credit loss estimates. Reasonable and supportable forecast periods vary by loan portfolio. The Company has adopted lifetime loss rate models for the portfolios, which use historical loss rates and forecast economic variables to calculate the expected credit losses for each loan pool. When loans do not share similar risk characteristics, the Company evaluates the loan for expected credit losses on an individual basis. Individually assessed loans include nonaccrual loans. 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 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 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. The Company estimates the allowance for unfunded credit commitments over the contractual period in which the entity is exposed to credit risk via a present contractual obligation to extend credit. Within the period of credit exposure, the Company considers both the likelihood that funding will occur, and the expected credit losses on the commitments that are expected to fund over their estimated lives. The allowance for unfunded credit commitments is maintained at a level believed by management to be sufficient to absorb expected credit losses related to unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities. For all off-balance sheet instruments and commitments, the unfunded credit exposure is calculated using assumptions based on the Company's historical utilization experience in related portfolio segments. Loss rates are applied to the calculated exposure balances to estimate the allowance for unfunded credit commitments. Other elements such as credit risk factors for loans outstanding, terms and expiration dates of the unfunded credit facilities, and other pertinent information are considered to determine the adequacy of the allowance. The allowance for unfunded credit commitments is included in the Accrued expenses and other liabilities on the Consolidated Balance Sheet. Changes to the allowance for unfunded credit commitments are included in Provision for credit losses on the Consolidated Income Statements. 89 Allowance for Credit Losses on Available-for-Sale Debt Securities — For each reporting period, each AFS debt security that is in an unrealized loss position is individually analyzed as part of the Company’s ongoing assessments to determine whether a fair value below the amortized cost basis has resulted from a credit loss or other factors. The initial indicator of impairment is a decline in fair value below the amortized cost of the AFS debt security, excluding accrued interest. The Company first considers whether there is a plan to sell the AFS debt security or it is more-likely-than-not that it will be required to sell the AFS debt security before recovery of the amortized cost. In determining whether an impairment is due to credit related factors, the Company considers the severity of the decline in fair value, nature of the security, the underlying collateral, the financial condition of the issuer, changes in the AFS debt security’s ratings and other qualitative factors. For AFS debt securities that are guaranteed or issued by the U.S. government, or government-sponsored enterprises of high credit quality, the Company applies a zero credit loss assumption. When the Company does not intend to sell the impaired AFS debt security and it is more-likely-than-not that the Company will not be required to sell the impaired debt security prior to recovery of its amortized cost basis, the credit component of the unrealized loss of the impaired AFS debt security is recognized as an allowance for credit losses, with a corresponding Provision for credit losses on the Consolidated Statement of Income and the non-credit component is recognized in Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, net of applicable taxes. At each reporting period, the Company increases or decreases the allowance for credit losses as appropriate, while limiting reversals of the allowance for credit losses to the extent of the amounts previously recorded. If the Company intends to sell the impaired debt security or it is more-likely-than-not that the Company will be required to sell the impaired debt security prior to recovering its amortized cost basis, the entire impairment amount is recognized as an adjustment to the debt security’s amortized cost basis, with a corresponding Provision for credit losses on the Consolidated Statement of Income. The amortized cost of the Company’s AFS debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on AFS debt securities as the Company reverses any accrued interest if a debt security is impaired. As each AFS debt security has a unique security structure, where the accrual status is clearly determined when certain criteria listed in the terms are met, the Company assesses the default status of each security as defined by the debt security’s specific security structure. Allowance for Credit Losses on Held-to-Maturity Debt Securities — For each major HTM debt security type, the allowance for credit losses is estimated collectively for groups of securities with similar risk characteristics. For securities that do not share similar risk characteristics, the losses are estimated individually. The Company applies a zero credit loss assumption to certain HTM debt securities, including debt securities that are either guaranteed or issued by the U.S. government or government-sponsored enterprises, are highly rated by nationally recognized statistical rating organizations (“NRSROs”), and have a long history of no credit losses. Any expected credit loss is recorded through the allowance for credit losses and deducted from the amortized cost basis of the security, reflecting the net amount the Company expects to collect. The amortized cost of the Company’s HTM debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on HTM debt securities, as the Company reverses any accrued interest against interest income if a debt security is placed on nonaccrual status. The criteria used to place HTM debt securities on nonaccrual are largely similar to those described for loans. Any cash collected on nonaccrual HTM debt securities is applied to reduce the security’s amortized cost basis and not as interest income. Generally, the Company returns an HTM security to accrual status when all delinquent interest and principal become current under the contractual terms of the security, and the collectability of remaining principal and interest is no longer doubtful. 90 Allowance for Collateral-Dependent Financial Assets — A financial asset is considered collateral-dependent if repayment is expected to be provided substantially through the operation or sale of the collateral. The allowance for credit losses is measured on an individual basis for collateral-dependent financial assets and determined by comparing the fair value of the collateral less the cost to sell, to the amortized cost basis of the related financial asset at the reporting date. Other than loans, collateral-dependent financial assets could also include resale agreements. In arrangements which the borrower must continually adjust the collateral securing the asset to reflect changes in the collateral’s fair value (e.g., resale agreements), the Company estimates the expected credit losses on the basis of the unsecured portion of the amortized cost as of the balance sheet date. If the fair value of the collateral is equal to or greater than the amortized cost of the resale agreement, the expected losses would be zero. If the fair value of the collateral is less than the amortized cost of the asset, the expected losses are limited to the difference between the fair value of the collateral and the amortized cost basis of the resale agreement. Allowance for Purchased Credit Deteriorated Assets — Purchased assets that have experienced a more-than-insignificant deterioration in credit quality since origination are deemed Purchased Credit Deteriorated (“PCD”) assets. For PCD HTM debt securities and PCD loans, the company records the allowance for credit losses by grossing up the initial amortized cost, which includes the purchase price and the allowance for credit losses. The expected credit losses of PCD debt securities are measured at the individual security level. The expected credit losses for PCD loans are measured based on the loan’s unpaid principal balance. Under this approach, there is no income statement impact from the acquisition. Subsequent changes in the allowance for credit losses on PCD assets will be recognized in Provision for credit losses on the Consolidated Statement of Income. 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. Depreciation and amortization are computed based on the straight-line method over the estimated useful lives of the various classes of assets. The ranges of estimated useful lives for the principal classes of assets are as follows: Premises and Equipment Useful Lives Buildings 25 years 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. An asset is considered impaired when the fair value, which is the expected undiscounted cash flows over the remaining useful life, is less than the net book value. The excess of the net book value over its fair value is charged as impairment loss to noninterest expense. 91 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 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. The Company organizes its operations into three reporting segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. For information on how the reporting units are identified and the components are aggregated, see Note 17 — Business Segments to the Consolidated Financial Statements in this Form 10-K. The Company has the option to perform a qualitative assessment of goodwill or elect to bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that a reporting unit’s fair value is greater than its carrying value, quantitative tests are not required. If the qualitative analysis indicates that it is more likely than not that a reporting unit’s fair value is less than its carrying value, the Company is required to perform a quantitative assessment to determine if there is goodwill impairment. Factors considered in the qualitative assessments include but are not limited to macroeconomic conditions, industry and market considerations, financial performance of the respective operating segment and other relevant entity- and reporting-unit specific considerations. A quantitative valuation involves determining the fair value of each reporting unit and comparing the fair value to its corresponding carrying value. Goodwill impairment loss is recorded as a charge to noninterest expense and an adjustment to the carrying value of goodwill. Subsequent reversals of goodwill impairment are not allowed. Derivatives — As part of its asset/liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate and foreign currency risks, and to assist customers with their risk management objectives. Derivatives utilized by the Company primarily include swaps, forwards and option contracts. Derivative instruments are included in Other assets or Accrued expenses and other liabilities on the Consolidated Balance Sheet at fair value. All derivatives designated as fair value hedges and hedges of the net investments in certain foreign operations are linked to specific hedged items or to groups of specific assets and liabilities on the Consolidated Balance Sheet. Cash flow hedges are linked to the forecasted transactions related to a recognized asset/liability or to groups of recognized assets/liabilities. The related cash flows impacts of derivatives are recognized on the Cash flows from operating activities section on the Consolidated Statement of Cash Flows. The Company uses accounting hedges based on the exposure being hedged as either fair value hedges, cash flow hedges or hedges of the net investments in certain foreign operations. For fair value hedges of interest rate risk, changes in fair value of derivatives are reported in the same line item where the earnings effect of the hedged item is presented, as Interest expense or Interest and dividend income on the Consolidated Statement of Income. Changes in fair value of derivatives designated as hedges of the net investments in foreign operations are recorded as a component of AOCI. For cash flow hedges of floating-rate interest payments or receipts, the change in the fair value of hedges is recognized in AOCI on the Consolidated Balance Sheet and reclassified to earnings in the same period when the hedged cash flows impact earnings. 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 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. The Company evaluates the hedge effectiveness and formally documents its hedging relationships at inception, including the identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction at the time the derivative contract is executed. Subsequent to inception, on a quarterly basis, the Company assesses whether the derivatives used in hedging transactions are highly effective in offsetting changes in the fair value of the hedged items or the cash flows of attributable hedged risks. The quarterly assessment is performed on both a prospective basis (to reconfirm forward-looking expectations that the hedge will be highly effective) and a retrospective basis (to determine whether the hedging relationship was highly effective). 92 The Company discontinues hedge accounting prospectively when (i) a derivative is no longer highly effective in offsetting the risk being hedged; (ii) a derivative expires, or is sold, terminated or exercised, or (iii) the Company determines that designation of a derivative as a hedge is no longer appropriate. If a fair value hedge is discontinued, the derivative will continue to be recorded on the Consolidated Balance Sheet at fair value with changes in fair value recognized on the Consolidated Statement of Income. When the hedged net investment is discontinued, any amounts that have not yet been recognized in earnings remain in AOCI until the net investment is either sold or substantially liquidated where the changes in the fair value of the derivatives are reclassified out of AOCI into Foreign exchange income on the Consolidated Statement of Income. If a cash flow hedge is discontinued but the hedged forecasted cash flow is still expected to happen, the derivative net gain or loss will remain in AOCI and be reclassified into earnings in the periods in which the hedged forecasted cash flow affects earnings. If a cash flow hedge is discontinued and it becomes probable that the forecasted cash flow is not expected to happen, the derivative net gain or loss will be reclassified into earnings immediately. The Company also offers various interest rate, commodity and foreign exchange derivative products to customers. 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. 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. 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, on the Consolidated Statement of Income. The Company is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected. Valuation of derivative assets and liabilities reflect the value of the instrument inclusive of the nonperformance risk. The Company uses master netting arrangements to mitigate counterparty credit risk in derivative transactions. To the extent the derivatives are subject to master netting arrangements, the Company takes into account the impact of master netting arrangements that allow the Company to set off all derivative contracts executed with the same counterparty on a net basis, and to offset the net derivative position with the related cash and securities collateral. The Company elects to offset derivative transactions with the same counterparty on the Consolidated Balance Sheet when a derivative transaction has a legally enforceable master netting arrangement and when it is eligible for netting under ASC 210-20-45-1, Balance Sheet Offsetting: Netting Derivative Positions on Balance Sheet. Derivative balances and related cash collateral are presented net on the Consolidated Balance Sheet. In addition, the Company applies the Settlement to Market treatment for the cash variation margin received/pledged on our interest rate and commodity contracts cleared through certain centrally cleared counterparties. As a result, derivative balances with these counterparties are considered settled by the variation margin. Fair Value — The Company records or discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value of financial instruments, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing an asset or a liability. These inputs can be readily observable, market corroborated or generally unobservable. 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. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements. The fair value of the Company’s assets and liabilities is classified and disclosed in one of the following three categories: 93 • Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets. • Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. • Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. For additional information on fair value, see Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K. Stock-Based Compensation — The Company grants time-based RSUs, which include service conditions for vesting. RSUs that vest in the form of shares of the Company’s common stock are classified as equity. Compensation cost for these time-based awards is based on the quoted market price of the Company’s common stock at the grant date. RSUs that will be settled in cash instead of shares are liability classified awards and compensation cost for these awards is adjusted to fair value based on changes in the Company’s stock price up to the settlement date. In addition, the Company grants performance-based RSUs, which contain additional performance goals and market conditions that are required to be met in order for the awards to vest. Compensation expense for these performance-based RSUs is based on the grant-date fair value considering both performance and market conditions. Subsequently, the Company evaluates the probable outcome of the performance conditions quarterly and makes cumulative adjustments for current and prior periods in compensation expense in the period of change. 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, 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. 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. 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: Net interest income and Noninterest income . The Company’s revenue from contracts with customers consists of service charges and fees related to deposit accounts, card income and wealth management fees. These revenue streams as described below comprised 43 %, 43 % and 41 % of total noninterest income for the years ended December 31, 2025, 2024 and 2023, respectively. • 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. 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. In addition, each time a deposit customer selects an optional service, the Company may earn transaction fees, generally recognized by the Company at the point when the transaction occurs. For business analysis accounts, commercial deposit customers receive an earnings credit based on their account balance, which can be used to offset the cost of banking and treasury management services. 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 Commercial and consumer d eposit-related account fees on the Consolidated Statement of Income. 94 • 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. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter-end based on actual transaction details received from the broker-dealer with whom the Company engages. 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. The calculation of the Company’s income tax provision and related tax accruals requires the use of estimates and judgments. Income tax expense consists of two components: current and deferred. Current tax expense represents taxes to be paid or refunded for the current period and includes income tax expense related to our uncertain tax positions. 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 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. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Management regularly reviews the Company’s tax positions and deferred tax balances. In concluding whether a valuation allowance is required, the Company considers all available evidence, both positive and negative, based on the more-likely-than-not criteria that such assets will be realized. Factors considered in this analysis include the Company’s ability to generate future taxable income, implement tax-planning strategies (as defined in ASC 740, Income Taxes ) and utilize taxable income from prior carryback years (if such carryback is permitted under the applicable tax law), as well as future reversals of existing taxable temporary differences. To the extent a deferred tax asset is no longer expected more-likely-than-not to be realized, a valuation allowance is established. Deferred tax assets net of deferred tax liabilities are included in Other assets on the Consolidated Balance Sheet. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in an income tax return. Uncertain tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Tax benefits not meeting our realization criteria represent unrecognized tax benefits. The Company establishes a liability for potential taxes, interest and penalties related to uncertain tax positions based on facts and circumstances, including the interpretation of existing law, new judicial or regulatory guidance, and the status of tax audits. The Company uses the PAM for affordable housing partnership investments, whereby the associated tax credits are recognized as a reduction to tax expense. 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. 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. 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. 95 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 Pronouncement Adopted in 2025 Standard Required Date of Adoption Description Effect on Financial Statements ASU No. 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures December 31, 2025 Early adoption is permitted. ASU 2023-09 amends the disclosure requirements for income tax rate reconciliation and income taxes paid. The guidance requires public business entities to provide on an annual basis: • A reconciliation of statutory tax rate to effective tax rate, using both percentages and reporting currency amounts, into specific categories with reconciling items at or above 5% of the statutory federal income rate. • The amount of income taxes paid (net of refunds) disaggregated by federal, state and foreign taxes, with further disaggregation by individual jurisdictions that are equal to 5% or more of income taxes paid. • Income (or loss) before income tax expense (or benefit) disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state and foreign. The Company adopted ASU 2023-09 on December 31, 2025, retrospectively by providing the revised disclosures for all periods presented. Recent Accounting Pronouncements Yet to be Adopted Standard Required Date of Adoption Description Effect on Financial Statements ASU No. 2025-09, Derivatives and Hedging (Topic 815) : Hedge Accounting Improvements January 1, 2027 Early adoption is permitted. ASU 2025-09 addresses five specific matters: 1. Broadens the set of hedged risk that may be combined within a group of individual forecasted transactions in a cash flow hedge. 2. Enables entities to apply cash flow hedge accounting on “choose-your-rate” debt. 3. Broadens situations where hedge accounting can be applied to forecasted purchases and sales of nonfinancial assets. 4. Removes the requirement to perform net written option assessment for a compound derivative when it is designated as a hedging instrument. 5. 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. 96 Recent Accounting Pronouncements Yet to be Adopted (Continued) Standard Required Date of Adoption Description Effect on Financial Statements ASU No. 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. ASU No. 2024-03, Income Statement —Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): D isaggregation of Income Statement Expenses December 31, 2027 Early adoption is permitted. ASU 2024-03 requires public companies to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to financial statements. Disclosures of disaggregated expenses include the following: • The amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion and amortization of capitalized costs related to oil- and gas-producing activities in each relevant expense caption. • A qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements. Note 2 — Fair Value Measurement and Fair Value of Financial Instruments Under applicable accounting standards, the Company measures a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly recorded at fair value on a recurring basis. At times, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments only as required through the application of an accounting method such as lower of cost or fair value or write-down of individual assets. The Company categorizes its assets and liabilities into three levels based on the established fair value hierarchy and conducts a review of fair value hierarchy classifications on a quarterly basis. For more information regarding the fair value hierarchy and how the Company measures fair value, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Fair Value to the Consolidated Financial Statements in this Form 10-K. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments within the fair value hierarchy. Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by third-party pricing service providers, including brokers who have experience in valuing 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. Inputs used by the third-party pricing service providers in valuing collateralized mortgage obligations and other securitization structures also include newly issued data, monthly payment information, whole loan collateral performance, tranche evaluation and “To Be Announced” prices. In valuing securities issued by state and political subdivisions, inputs used by third-party pricing service providers also include material event notices. The valuations provided by the brokers incorporate information from their trading desks, research and other market data. 97 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. When significant variances in prices are identified, the Company further compares the inputs used by different sources to ascertain the reliability of these sources. On a quarterly basis, the Company reviews the valuation inputs and methodology furnished by third-party pricing service providers for each security category. On an annual basis, the Company assesses the reasonableness of broker pricing by reviewing the related pricing methodologies. This review includes corroborating pricing with market data, performing pricing input reviews under current market-related conditions, and investigating security pricing by instrument as needed. When a quoted price in an active market exists for the identical security, this price is used to determine the fair value and the AFS debt security is classified as Level 1. Level 1 AFS debt securities consist of U.S. Treasury securities. When pricing is unavailable from third-party pricing service providers for certain securities, the Company requests market quotes from various independent external brokers and utilizes the average quoted market prices. In addition, the Company obtains market quotes from other official published sources. As these valuations are based on observable inputs in the current marketplace, they are classified as Level 2. Equity Securities — Equity securities consist of mutual funds and exchange-traded equity securities. The Company invests in these mutual funds for CRA purposes. The Company uses net asset value (“NAV”) information to determine the fair value of these equity securities. When NAV is available periodically and the equity securities can be redeemed at the publicly available NAV, the fair value of the equity securities is classified as Level 1. When NAV is available periodically, but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is classified as Level 2. Exchange-traded equity securities are measured based on quoted prices on an active exchange market, and classified as Level 1. Interest Rate Contracts — Interest rate contracts consist of interest rate swaps and options. The fair value of the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The fair value of the interest rate options, which consist of floors and caps, is determined using the market standard methodology of discounting the future expected cash receipts that will occur if variable interest rates fall below (rise above) the strike rate of the floors (caps). In addition, to comply with the provisions of ASC 820, Fair Value Measurement , the Company incorporates credit valuation adjustments to appropriately reflect both its own and the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. The credit valuation adjustments associated with the Company’s derivatives utilize model-derived credit spreads, which are Level 3 inputs. Considering the observable nature of all other significant inputs utilized, the Company classifies these derivative instruments as Level 2. Foreign Exchange Contracts — The fair value of foreign exchange contracts is determined at each reporting period based on changes in the applicable foreign exchange rates. These are over-the-counter contracts where quoted market prices are not readily available. Valuation is measured using conventional valuation methodologies with observable market data. Due to the short-term nature of the majority of these contracts, the counterparties’ credit risks are considered nominal and result in no adjustments to the valuation of the foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign exchange contracts is classified as Level 2. In addition, the Bank managed its foreign currency exposure in the net investment in its China subsidiary, 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. The fair value of foreign currency non-deliverable forward contracts is determined by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include the spot and forward rates of the contractual currencies. Foreign exchange forward curves are used to determine which forward rate pertains to a specific maturity. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. 98 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, which is an unobservable input. 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 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. The model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S. Treasury rate and equity volatility. The Company applies proxy volatilities based on the industry sectors of the private companies. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Since both equity volatility and liquidity discount assumptions are subject to management’s judgment, measurement uncertainty is inherent in the valuation of private company warrants. Due to the unobservable nature of the equity volatility and liquidity discount assumptions used in deriving the estimated fair value, warrants from private companies are classified as Level 3. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the equity volatility and liquidity discount assumptions is performed. In connection with the Company’s acquisition of a 49.99 % equity interest in an investee during the third quarter of 2023, the Company granted 349 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. Commodity Contracts — Commodity contracts consist of swaps and options referencing commodity products. The fair value of the commodity option contracts is determined using the Black-Scholes model and assumptions that include expectations of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as the market price of the commodity. Commodity swaps are structured as an exchange of fixed cash flows for floating cash flows. The fair value of the commodity swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) based on the market prices of the commodity. The fixed cash flows are predetermined based on the known volumes and fixed price as specified in the swap agreement. The floating cash flows are correlated with the change of forward commodity prices, which is derived from market corroborated futures settlement prices. As a result, the Company classifies these derivative instruments as Level 2 due to the observable nature of the significant inputs utilized. 99 The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and 2024: Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2025 ($ in thousands) Level 1 Level 2 Level 3 Total Fair Value AFS debt securities: U.S. Treasury securities $ 993,913 $ — $ — $ 993,913 U.S. government agency and U.S. government sponsored enterprise debt securities — 257,654 — 257,654 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities (1) : Commercial mortgage-backed securities — 265,338 — 265,338 Residential mortgage-backed securities — 10,132,653 — 10,132,653 Municipal securities — 243,102 — 243,102 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 190,948 — 190,948 Residential mortgage-backed securities — 393,787 — 393,787 Corporate debt securities — 464,981 — 464,981 Foreign government bonds — 238,455 — 238,455 Asset-backed securities — 31,389 — 31,389 Total AFS debt securities $ 993,913 $ 12,218,307 $ — $ 13,212,220 Affordable housing partnership, tax credit and CRA investments, net: Equity securities $ 22,098 $ 4,298 $ — $ 26,396 Total affordable housing partnership, tax credit and CRA investments, net $ 22,098 $ 4,298 $ — $ 26,396 Other assets: Equity securities $ 630 $ — $ — $ 630 Total other assets $ 630 $ — $ — $ 630 Derivative assets: Interest rate contracts $ — $ 298,558 $ — $ 298,558 Foreign exchange contracts — 44,340 — 44,340 Credit contracts — 25 — 25 Equity contracts — — 522 522 Commodity contracts — 66,022 — 66,022 Gross derivative assets $ — $ 408,945 $ 522 $ 409,467 Netting adjustments (2) $ — $ ( 257,525 ) $ — $ ( 257,525 ) Net derivative assets $ — $ 151,420 $ 522 $ 151,942 Derivative liabilities: Interest rate contracts $ — $ 256,870 $ — $ 256,870 Foreign exchange contracts — 43,160 — 43,160 Equity contracts (3) — — 13,734 13,734 Credit contracts — 51 — 51 Commodity contracts — 72,158 — 72,158 Gross derivative liabilities $ — $ 372,239 $ 13,734 $ 385,973 Netting adjustments (2) $ — $ ( 101,640 ) $ — $ ( 101,640 ) Net derivative liabilities $ — $ 270,599 $ 13,734 $ 284,333 Refer to table footnotes on the following page. 100 Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2024 ($ in thousands) Level 1 Level 2 Level 3 Total Fair Value AFS debt securities: U.S. Treasury securities $ 638,265 $ — $ — $ 638,265 U.S. government agency and U.S. government sponsored enterprise debt securities — 262,587 — 262,587 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities (1) : Commercial mortgage-backed securities — 426,214 — 426,214 Residential mortgage-backed securities — 7,738,260 — 7,738,260 Municipal securities — 250,153 — 250,153 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 258,470 — 258,470 Residential mortgage-backed securities — 433,608 — 433,608 Corporate debt securities — 526,166 — 526,166 Foreign government bonds — 233,880 — 233,880 Asset-backed securities — 34,715 — 34,715 Collateralized loan obligations (“CLOs”) — 44,493 — 44,493 Total AFS debt securities $ 638,265 $ 10,208,546 $ — $ 10,846,811 Affordable housing partnership, tax credit and CRA investments, net: Equity securities $ 20,817 $ 4,204 $ — $ 25,021 Total affordable housing partnership, tax credit and CRA investments, net $ 20,817 $ 4,204 $ — $ 25,021 Other assets: Equity securities $ 568 $ — $ — $ 568 Total other assets $ 568 $ — $ — $ 568 Derivative assets: Interest rate contracts $ — $ 385,311 $ — $ 385,311 Foreign exchange contracts — 89,083 — 89,083 Credit contracts — 1 — 1 Equity contracts — — 239 239 Commodity contracts — 48,499 — 48,499 Gross derivative assets $ — $ 522,894 $ 239 $ 523,133 Netting adjustments (2) $ — $ ( 427,292 ) $ — $ ( 427,292 ) Net derivative assets $ — $ 95,602 $ 239 $ 95,841 Derivative liabilities: Interest rate contracts $ — $ 414,172 $ — $ 414,172 Foreign exchange contracts — 71,254 — 71,254 Equity contracts (3) — — 15,119 15,119 Credit contracts — 12 — 12 Commodity contracts — 45,328 — 45,328 Gross derivative liabilities $ — $ 530,766 $ 15,119 $ 545,885 Netting adjustments (2) $ — $ ( 112,284 ) $ — $ ( 112,284 ) Net derivative liabilities $ — $ 418,482 $ 15,119 $ 433,601 (1) Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $ 9.6 billion and $ 7.2 billion of fair value as of December 31, 2025 and 2024, respectively. (2) Represents the balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information. (3) Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment. 101 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. The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Derivative assets: Equity contracts Beginning balance $ 239 $ 336 $ 323 Total losses included in earnings (1) ( 156 ) ( 97 ) ( 79 ) Issuances (2) 439 — 92 Ending balance $ 522 $ 239 $ 336 Derivative liabilities: Equity contracts (3) 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 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. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Inputs Range of Inputs Weighted- Average of Inputs December 31, 2025 Derivative assets: Equity contracts $ 522 Black-Scholes option pricing model Equity volatility 34 % — 53 % 40 % (1) Liquidity discount 47 % 47 % Derivative liabilities: Equity contracts (2) $ 13,734 Internal model Payout % based on operating revenue and measure of operating profit of investee 35 % 35 % December 31, 2024 Derivative assets: Equity contracts $ 239 Black-Scholes option pricing model Equity volatility 38 % — 57 % 50 % (1) Liquidity discount 47 % 47 % Derivative liabilities: Equity contracts (2) $ 15,119 Internal model Payout % based on operating revenue and measure of operating profit of investee 84 % 84 % (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 an investment. 102 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 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. The following two methods are used to derive the fair value of individually evaluated loans held-for-investment: • Discounted cash flow valuation techniques consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate. • When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations, or is unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches. Affordable Housing Partnership, Tax Credit and CRA Investments, Net — The Company conducts due diligence and secures applicable internal and external approval on its affordable housing partnership, tax credit and CRA investments prior to closing the investment and initial funding. After closing, the Company continues its periodic monitoring process to ensure that book values are realizable, the investments are performing as expected and there is no significant tax credit recapture risk. This monitoring process includes reviewing the investment entity’s financial statements, production reports and 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. The Company assesses its tax credit and other investments for possible OTTI on an annual basis or when events or circumstances suggest that the carrying amount of the investments may not be realizable. These circumstances can include, but are not limited to the following factors: • expected future cash flows that are less than the carrying amoun t of the investment; • changes in the economic, market or technological environment that could adversely affect the investee’s operations; • the potential for tax credit recapture; and • other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment. All available information is considered in assessing whether a decline in value is other-than-temporary. Generally, none of the aforementioned factors are individually conclusive and the relative importance placed on individual facts may vary depending on the situation. In accordance with ASC 323-10-35-32, Investments — Equity Method and Joint Ventures, an impairment charge would only be recognized in earnings for a decline in value that is determined to be other-than-temporary. Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment such as an acceptance of a deed-in-lieu of foreclosure. These OREO properties are recorded at estimated fair value less the costs to sell at the time of foreclosure or at the lower of cost or estimated fair value less the costs to sell subsequent to acquisition. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. OREO properties are classified as Level 3. 103 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: Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2025 ($ in thousands) Level 1 Level 2 Level 3 Fair Value Measurements Loans held-for-investment: Commercial: C&I $ — $ — $ 5,916 $ 5,916 CRE: CRE — — 13,335 13,335 Total loans held-for-investment $ — $ — $ 19,251 $ 19,251 Affordable housing partnership, tax credit and CRA investments, net $ — $ — $ 953 $ 953 OREO (1) $ — $ — $ 13,035 $ 13,035 Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2024 ($ in thousands) Level 1 Level 2 Level 3 Fair Value Measurements Loans held-for-investment: Commercial: C&I $ — $ — $ 48,384 $ 48,384 CRE: CRE — — 1,678 1,678 Construction and land — — 11,316 11,316 Total commercial — — 61,378 61,378 Consumer: Residential mortgage: HELOCs — — 108 108 Total consumer — — 108 108 Total loans held-for-investment $ — $ — $ 61,486 $ 61,486 Affordable housing partnership, tax credit and CRA investments, net $ — $ — $ 5,000 $ 5,000 OREO (1) $ — $ — $ 19,386 $ 19,386 (1) Represents the carrying value of OREO property that was written down subsequent to its initial classification as OREO and is included in Other assets on the Consolidated Balance Sheet. 104 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: Year Ended December 31, ($ in thousands) 2025 2024 2023 Loans held-for-investment: Commercial: C&I $ ( 40,996 ) $ ( 43,754 ) $ ( 6,152 ) CRE: CRE ( 21,830 ) ( 78 ) ( 1,183 ) Construction and land — ( 2,289 ) — Total CRE ( 21,830 ) ( 2,367 ) ( 1,183 ) Total commercial ( 62,826 ) ( 46,121 ) ( 7,335 ) Consumer: Residential mortgage: Single-family residential — ( 1,392 ) — HELOCs — — ( 40 ) Total consumer — ( 1,392 ) ( 40 ) Total loans held-for-investment $ ( 62,826 ) $ ( 47,513 ) $ ( 7,375 ) Affordable housing partnership, tax credit and CRA investments, net ( 550 ) ( 685 ) ( 1,140 ) OREO ( 7,381 ) ( 7,735 ) — 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: ($ in thousands) Fair Value Measurements (Level 3) Valuation Techniques Unobservable Inputs Range of Inputs Weighted-Average of Inputs December 31, 2025 Loans held-for-investment $ 4,516 Fair value of collateral Discount 75 % — 100 % 75 % (1) $ 14,735 Fair value of property Selling cost 8 % 8 % Affordable housing partnership, tax credit and CRA investments, net $ 953 Individual analysis of each investment Expected future tax benefits and distributions NM NM OREO $ 13,035 Fair value of property Selling cost 8 % 8 % December 31, 2024 Loans held-for-investment $ 910 Fair value of collateral Discount 50 % 50 % $ 22,993 Fair value of collateral Contract value NM NM $ 37,583 Fair value of property Selling cost 8 % — 20 % 10 % (1) Affordable housing partnership, tax credit and CRA investments, net $ 5,000 Individual analysis of each investment Expected future tax benefits and distributions NM NM OREO $ 19,386 Fair value of property Selling cost 8 % 8 % NM - Not meaningful (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of both December 31, 2025 and 2024. 105 Disclosures about the Fair Value of Financial Instruments The following tables present the fair value estimates for financial instruments as of December 31, 2025 and 2024, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets , and accrued interest payable which is included in Accrued expenses and other liabilities . These financial instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet. December 31, 2025 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 4,188,139 $ 4,188,139 $ — $ — $ 4,188,139 Interest-bearing deposits with banks $ 16,189 $ — $ 16,189 $ — $ 16,189 Resale agreements $ 425,000 $ — $ 351,065 $ — $ 351,065 HTM debt securities $ 2,870,058 $ 524,887 $ 1,954,859 $ — $ 2,479,746 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 Mortgage servicing rights $ 4,119 $ — $ — $ 7,114 $ 7,114 Accrued interest receivable $ 315,669 $ — $ 315,669 $ — $ 315,669 Financial liabilities: Demand, checking, savings and money market deposits $ 41,797,887 $ — $ 41,797,887 $ — $ 41,797,887 Time deposits $ 25,284,814 $ — $ 25,285,076 $ — $ 25,285,076 FHLB advances $ 3,000,000 $ — $ 3,001,878 $ — $ 3,001,878 Long-term debt $ 32,320 $ — $ 32,070 $ — $ 32,070 Accrued interest payable $ 60,513 $ — $ 60,513 $ — $ 60,513 December 31, 2024 ($ in thousands) Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 5,250,742 $ 5,250,742 $ — $ — $ 5,250,742 Interest-bearing deposits with banks $ 48,198 $ — $ 48,198 $ — $ 48,198 Resale agreements $ 425,000 $ — $ 329,769 $ — $ 329,769 HTM debt securities $ 2,917,413 $ 499,858 $ 1,887,896 $ — $ 2,387,754 Restricted equity securities, at cost $ 165,259 $ — $ 165,259 $ — $ 165,259 Loans held-for-investment, net $ 53,024,585 $ — $ — $ 51,328,254 $ 51,328,254 Mortgage servicing rights $ 5,234 $ — $ — $ 8,822 $ 8,822 Accrued interest receivable $ 316,392 $ — $ 316,392 $ — $ 316,392 Financial liabilities: Demand, checking, savings and money market deposits $ 39,959,251 $ — $ 39,959,251 $ — $ 39,959,251 Time deposits $ 23,215,772 $ — $ 23,225,317 $ — $ 23,225,317 FHLB advances $ 3,500,000 $ — $ 3,497,953 $ — $ 3,497,953 Long-term debt $ 32,001 $ — $ 31,246 $ — $ 31,246 Accrued interest payable $ 61,950 $ — $ 61,950 $ — $ 61,950 106 Note 3 — Securities Purchased under Resale Agreements The Company’s resale agreements expose it to credit risk from both the counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with the counterparties. The relevant agreements allow for an efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is the Company’s policy to take possession, where possible, of the 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. Gross securities purchased under resale agreements were $ 425 million as of both December 31, 2025 and 2024. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master netting agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by third-party trustees. The following table presents the resale agreements included on the Consolidated Balance Sheet as of December 31, 2025 and 2024: Gross Amounts Not Offset on the Consolidated Balance Sheet ($ in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts of Assets Presented on the Consolidated Balance Sheet Collateral Received (1) Net Amount Resale agreements as of December 31, 2025 $ 425,000 $ — $ 425,000 $ ( 350,953 ) $ 74,047 Resale agreements as of December 31, 2024 $ 425,000 $ — $ 425,000 $ ( 329,603 ) $ 95,397 (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. Therefore, excess collateral, if any, is not reflected above. In addition to the amounts included in the table above, the Company also has balance sheet netting related to derivatives. Refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information. 107 Note 4 — Securities 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 Allowance for Credit Losses Fair Value AFS debt securities: U.S. Treasury securities $ 1,010,053 $ 837 $ ( 16,977 ) $ — $ 993,913 U.S. government agency and U.S. government-sponsored enterprise debt securities 287,687 — ( 30,033 ) — 257,654 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) : Commercial mortgage-backed securities 292,564 86 ( 27,312 ) — 265,338 Residential mortgage-backed securities 10,251,714 68,588 ( 187,649 ) — 10,132,653 Municipal securities 277,275 20 ( 34,193 ) — 243,102 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 214,987 — ( 22,139 ) ( 1,900 ) 190,948 Residential mortgage-backed securities 452,208 — ( 58,421 ) — 393,787 Corporate debt securities 554,158 6 ( 89,183 ) — 464,981 Foreign government bonds 247,249 437 ( 9,231 ) — 238,455 Asset-backed securities 31,886 — ( 497 ) — 31,389 Total AFS debt securities 13,619,781 69,974 ( 475,635 ) ( 1,900 ) 13,212,220 HTM debt securities U.S. Treasury securities 540,666 — ( 15,779 ) — 524,887 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,007,055 — ( 146,921 ) — 860,134 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) : Commercial mortgage-backed securities 474,747 — ( 69,471 ) — 405,276 Residential mortgage-backed securities 662,127 — ( 124,176 ) — 537,951 Municipal securities 185,463 — ( 33,965 ) — 151,498 Total HTM debt securities 2,870,058 — ( 390,312 ) — 2,479,746 Total debt securities $ 16,489,839 $ 69,974 $ ( 865,947 ) $ ( 1,900 ) $ 15,691,966 108 December 31, 2024 ($ in thousands) Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Fair Value AFS debt securities: U.S. Treasury securities $ 676,300 $ — $ ( 38,035 ) $ 638,265 U.S. government agency and U.S. government-sponsored enterprise debt securities 308,220 — ( 45,633 ) 262,587 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) : Commercial mortgage-backed securities 472,535 886 ( 47,207 ) 426,214 Residential mortgage-backed securities 7,974,768 12,278 ( 248,786 ) 7,738,260 Municipal securities 287,301 38 ( 37,186 ) 250,153 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 294,235 2 ( 35,767 ) 258,470 Residential mortgage-backed securities 514,527 — ( 80,919 ) 433,608 Corporate debt securities 653,500 — ( 127,334 ) 526,166 Foreign government bonds 244,803 2,069 ( 12,992 ) 233,880 Asset-backed securities 35,086 — ( 371 ) 34,715 CLOs 44,500 — ( 7 ) 44,493 Total AFS debt securities 11,505,775 15,273 ( 674,237 ) 10,846,811 HTM debt securities: U.S. Treasury securities 535,080 — ( 35,222 ) 499,858 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,004,479 — ( 200,259 ) 804,220 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) : Commercial mortgage-backed securities 486,388 — ( 91,461 ) 394,927 Residential mortgage-backed securities 703,833 — ( 155,626 ) 548,207 Municipal securities 187,633 — ( 47,091 ) 140,542 Total HTM debt securities 2,917,413 — ( 529,659 ) 2,387,754 Total debt securities $ 14,423,188 $ 15,273 $ ( 1,203,896 ) $ 13,234,565 (1) Amortized cost excludes accrued interest receivables, which are included in Other assets on the Consolidated Balance Sheet. 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 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. 109 Unrealized Losses of Available-for-Sale Debt Securities The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position, as of December 31, 2025 and 2024: December 31, 2025 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ 323,019 $ ( 1,627 ) $ 575,638 $ ( 15,350 ) $ 898,657 $ ( 16,977 ) U.S. government agency and U.S. government-sponsored enterprise debt securities — — 257,654 ( 30,033 ) 257,654 ( 30,033 ) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — — 256,503 ( 27,312 ) 256,503 ( 27,312 ) Residential mortgage-backed securities 1,052,833 ( 5,480 ) 1,582,952 ( 182,169 ) 2,635,785 ( 187,649 ) Municipal securities — — 237,214 ( 34,193 ) 237,214 ( 34,193 ) Non-agency mortgage-backed securities: Commercial mortgage-backed securities — — 190,948 ( 22,139 ) 190,948 ( 22,139 ) Residential mortgage-backed securities — — 393,787 ( 58,421 ) 393,787 ( 58,421 ) Corporate debt securities — — 454,975 ( 89,183 ) 454,975 ( 89,183 ) Foreign government bonds — — 90,769 ( 9,231 ) 90,769 ( 9,231 ) Asset-backed securities — — 31,389 ( 497 ) 31,389 ( 497 ) Total AFS debt securities $ 1,375,852 $ ( 7,107 ) $ 4,071,829 $ ( 468,528 ) $ 5,447,681 $ ( 475,635 ) December 31, 2024 Less Than 12 Months 12 Months or More Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses AFS debt securities: U.S. Treasury securities $ — $ — $ 638,265 $ ( 38,035 ) $ 638,265 $ ( 38,035 ) U.S. government agency and U.S. government-sponsored enterprise debt securities — — 262,587 ( 45,633 ) 262,587 ( 45,633 ) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 2,741 ( 30 ) 377,756 ( 47,177 ) 380,497 ( 47,207 ) Residential mortgage-backed securities 2,719,228 ( 16,404 ) 1,528,252 ( 232,382 ) 4,247,480 ( 248,786 ) Municipal securities 2,763 ( 95 ) 245,360 ( 37,091 ) 248,123 ( 37,186 ) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 10,767 ( 332 ) 235,668 ( 35,435 ) 246,435 ( 35,767 ) Residential mortgage-backed securities — — 433,608 ( 80,919 ) 433,608 ( 80,919 ) Corporate debt securities — — 526,166 ( 127,334 ) 526,166 ( 127,334 ) Foreign government bonds — — 87,008 ( 12,992 ) 87,008 ( 12,992 ) Asset-backed securities — — 34,715 ( 371 ) 34,715 ( 371 ) CLOs — — 44,493 ( 7 ) 44,493 ( 7 ) Total AFS debt securities $ 2,735,499 $ ( 16,861 ) $ 4,413,878 $ ( 657,376 ) $ 7,149,377 $ ( 674,237 ) 110 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, 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. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities, and 83 non-agency mortgage-backed securities. Allowance for Credit Losses on Available-for-Sale Debt Securities The Company evaluates each AFS debt security where the fair value declines below amortized cost. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in this Form 10-K. The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and the widening of liquidity and/or credit spreads. U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise debt and mortgage-backed securities are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The remaining securities that were in an unrealized loss position as of December 31, 2025 were mainly comprised of the following: • 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. banks. 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 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. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. 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 The Company separately evaluates its HTM debt securities for any credit losses using an expected loss model, similar to the methodology used for loans. For additional information on the Company’s credit loss methodology, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in this Form 10-K. 111 The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of December 31, 2025, all HTM securities were rated investment grade by NRSROs and issued, guaranteed, or supported by U.S. government entities and agencies. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of December 31, 2025 and 2024. Overall, the Company believes that the credit support levels of the debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received. Realized Gains 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, ($ in thousands) 2025 2024 2023 Gross realized gains from sales (1) $ 963 $ 2,069 $ 3,138 Credit losses $ ( 1,900 ) $ — $ — Impairment write-off (1) $ — $ — $ ( 10,000 ) Related tax (benefit) expense $ ( 277 ) $ 612 $ ( 2,029 ) (1) During 2023, the Company recognized $ 7 million in net losses on AFS securities as a component of Noninterest income in the Company’s Consolidated Statement of Income, consisting of a $ 10 million impairment write-off on a subordinated debt security, partially offset by a $ 3 million gain on the sale of the same security. Interest Income The following table presents the composition of interest income on debt securities for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Taxable interest $ 607,311 $ 429,003 $ 255,475 Nontaxable interest 14,626 20,062 20,715 Total interest income on debt securities $ 621,937 $ 449,065 $ 276,190 112 Contractual Maturities of Available-for-Sale and Held-to-Maturity Debt Securities The following tables present the contractual maturities, amortized cost, fair value and weighted-average yields of AFS and HTM debt securities as of December 31, 2025. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total AFS debt securities: U.S. Treasury securities Amortized cost $ 440,969 $ 472,570 $ 96,514 $ — $ 1,010,053 Fair value 432,148 465,270 96,495 — 993,913 Weighted-average yield (1) 1.11 % 2.75 % 3.84 % — % 2.14 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — 26,677 203,514 57,496 287,687 Fair value — 26,256 182,396 49,002 257,654 Weighted-average yield (1) — % 1.58 % 2.07 % 2.16 % 2.04 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — 53,961 98,540 10,391,777 10,544,278 Fair value — 52,339 91,020 10,254,632 10,397,991 Weighted-average yield (1) (2) — % 2.82 % 2.83 % 4.79 % 4.76 % Municipal securities Amortized cost 7,300 19,206 22,614 228,155 277,275 Fair value 7,219 18,679 19,438 197,766 243,102 Weighted-average yield (1) (2) 1.15 % 2.50 % 2.40 % 2.26 % 2.26 % Non-agency mortgage-backed securities Amortized cost — 1,324 — 665,871 667,195 Fair value — 1,320 — 583,415 584,735 Weighted-average yield (1) — % 3.35 % — % 2.28 % 2.28 % Corporate debt securities Amortized cost 15,158 26,500 437,500 75,000 554,158 Fair value 15,116 26,204 361,829 61,832 464,981 Weighted-average yield (1) 4.07 % 5.23 % 2.38 % 2.09 % 2.53 % Foreign government bonds Amortized cost 118,665 28,584 50,000 50,000 247,249 Fair value 118,935 28,751 49,904 40,865 238,455 Weighted-average yield (1) 2.31 % 1.81 % 4.34 % 1.50 % 2.50 % Asset-backed securities Amortized cost — — — 31,886 31,886 Fair value — — — 31,389 31,389 Weighted-average yield (1) — % — % — % 4.65 % 4.65 % Total AFS debt securities Amortized cost $ 582,092 $ 628,822 $ 908,682 $ 11,500,185 $ 13,619,781 Fair value $ 573,418 $ 618,819 $ 801,082 $ 11,218,901 $ 13,212,220 Weighted-average yield (1) 1.44 % 2.76 % 2.63 % 4.55 % 4.21 % 113 ($ in thousands) Within One Year After One Year through Five Years After Five Years through Ten Years After Ten Years Total HTM debt securities: U.S. Treasury securities Amortized cost $ — $ 540,666 $ — $ — $ 540,666 Fair value — 524,887 — — 524,887 Weighted-average yield (1) — % 1.05 % — % — % 1.05 % U.S. government agency and U.S. government-sponsored enterprise debt securities Amortized cost — 105,467 556,098 345,490 1,007,055 Fair value — 97,497 479,123 283,514 860,134 Weighted-average yield (1) — % 1.37 % 1.91 % 2.04 % 1.90 % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities Amortized cost — 48,732 178,114 910,028 1,136,874 Fair value — 45,124 153,739 744,364 943,227 Weighted-average yield (1) (2) — % 1.48 % 1.81 % 1.67 % 1.68 % Municipal securities Amortized cost — — 13,958 171,505 185,463 Fair value — — 12,638 138,860 151,498 Weighted-average yield (1) (2) — % — % 2.35 % 1.99 % 2.02 % Total HTM debt securities Amortized cost $ — $ 694,865 $ 748,170 $ 1,427,023 $ 2,870,058 Fair value $ — $ 667,508 $ 645,500 $ 1,166,738 $ 2,479,746 Weighted-average yield (1) — % 1.13 % 1.89 % 1.79 % 1.66 % (1) Weighted-average yields are computed based on amortized cost balances. (2) Yields on tax-exempt securities are not presented on a tax-equivalent basis. As of 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 The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of December 31, 2025 and 2024: December 31, ($ in thousands) 2025 2024 FRB of San Francisco stock $ 66,179 $ 63,930 FHLB stock 87,305 101,329 Total restricted equity securities $ 153,484 $ 165,259 114 Note 5 — Derivatives The Company uses derivative instruments to manage exposure to market risk, primarily interest rate and foreign currency risks, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, the funding needs, as well as the Bank’s investment in EWCN. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements in this Form 10-K. 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 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 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. December 31, 2025 December 31, 2024 Fair Value Fair Value ($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 4,250,000 $ 39,997 $ 139 $ 5,250,000 $ 5,647 $ 35,211 Derivatives not designated as hedging instruments: Interest rate contracts $ 18,987,277 $ 258,561 $ 256,731 $ 17,005,381 $ 379,664 $ 378,961 Commodity contracts (1) — 66,022 72,158 — 48,499 45,328 Foreign exchange contracts 4,550,101 44,340 43,160 5,201,460 89,083 71,254 Credit contracts (2) 303,421 25 51 168,999 1 12 Equity contracts — 522 (3) 13,734 (4) — 239 (3) 15,119 (4) Total derivatives not designated as hedging instruments $ 23,840,799 $ 369,470 $ 385,834 $ 22,375,840 $ 517,486 $ 510,674 Gross derivative assets/liabilities $ 409,467 $ 385,973 $ 523,133 $ 545,885 Less: Master netting agreements ( 74,138 ) ( 74,138 ) ( 111,124 ) ( 111,124 ) Less: Cash collateral received/paid ( 183,387 ) ( 27,502 ) ( 316,168 ) ( 1,160 ) Net derivative assets/liabilities $ 151,942 $ 284,333 $ 95,841 $ 433,601 (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. 115 Derivatives Designated as Hedging Instruments Cash Flow Hedges — The Company uses interest rate swaps and collars to hedge the variability in the interest amount received on certain floating-rate commercial loans due to changes in the contractually specified interest rates. As of 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. The after-tax impact of cash flow hedges on AOCI is shown in Note 15 — Accumulated Other Comprehensive (Loss) Income to the Consolidated Financial Statements in this Form 10-K. Year Ended December 31, ($ in thousands) 2025 2024 2023 Gains (losses) recognized in AOCI: Interest rate contracts $ 48,016 $ ( 124,382 ) $ ( 5,767 ) Losses (gains) reclassified from AOCI into earnings: Interest expense (for cash flow hedges on borrowings) $ — $ — $ ( 696 ) Interest and dividend income (for cash flow hedges on loans) 20,959 91,083 82,153 Noninterest income — — ( 1,614 ) (1) Total $ 20,959 $ 91,083 $ 79,843 (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 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, ($ in thousands) 2025 2024 2023 Gains recognized in AOCI $ — $ 586 $ 2,571 Derivatives Not Designated as Hedging Instruments Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk. The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers, as well as to meet its funding needs in certain foreign currencies. A majority of the foreign exchange contracts had original maturities of one year or less as of both December 31, 2025 and 2024. 116 The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Fair Value Fair Value ($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities Customer-related positions: Interest rate contracts: Swaps $ 7,566,889 $ 47,448 $ 206,794 $ 6,854,372 $ 11,828 $ 361,256 Written options 1,463,110 — 1,900 1,458,428 — 4,953 Collars and corridors 444,604 311 20 181,039 80 440 Subtotal 9,474,603 47,759 208,714 8,493,839 11,908 366,649 Foreign exchange contracts: Forwards and spot 1,156,203 23,661 2,831 996,486 11,693 24,201 Swaps 785,956 13,272 661 1,504,469 16,117 25,366 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 and other: Interest rate contracts: Swaps $ 7,604,959 $ 208,860 $ 47,682 $ 6,872,075 $ 362,323 $ 12,228 Purchased options 1,463,110 1,922 — 1,458,428 4,990 — Collars and corridors 444,605 20 335 181,039 443 84 Subtotal 9,512,674 210,802 48,017 8,511,542 367,756 12,312 Foreign exchange contracts: Forwards and spot 234,278 1,602 3,498 86,750 2,318 1,738 Swaps 2,246,744 5,718 36,083 2,613,755 58,955 19,949 Purchased options 63,460 87 14 — — — Subtotal 2,544,482 7,407 39,595 2,700,505 61,273 21,687 Total $ 12,057,156 $ 218,209 $ 87,612 $ 11,212,047 $ 429,029 $ 33,999 117 The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Fair Value Fair Value ($ and units in thousands) Notional Units Assets Liabilities Notional Units Assets Liabilities Customer-related positions: Commodity contracts: Crude oil: Swaps 4,255 Barrels $ 205 $ 28,533 4,830 Barrels $ 4,682 $ 6,874 Collars 3,747 Barrels 21 13,622 5,477 Barrels 1,604 3,362 Subtotal 8,002 Barrels 226 42,155 10,307 Barrels 6,286 10,236 Natural gas: Swaps 112,599 MMBTUs 5,814 18,403 141,736 MMBTUs 13,095 17,708 Collars 71,945 MMBTUs 1,879 6,693 62,045 MMBTUs 6,061 4,556 Written options — MMBTUs — — 1,234 MMBTUs 167 — Subtotal 184,544 MMBTUs 7,693 25,096 205,015 MMBTUs 19,323 22,264 Total $ 7,919 $ 67,251 $ 25,609 $ 32,500 Economic hedges: Commodity contracts: Crude oil: Swaps 4,255 Barrels $ 25,309 $ 11 4,830 Barrels $ 4,479 $ 3,893 Collars 3,747 Barrels 8,724 21 5,477 Barrels 1,547 76 Subtotal 8,002 Barrels 34,033 32 10,307 Barrels 6,026 3,969 Natural gas: Swaps 110,506 MMBTUs 18,258 3,963 139,136 MMBTUs 13,323 5,056 Collars 68,965 MMBTUs 5,812 912 61,341 MMBTUs 3,541 3,650 Purchased options — MMBTUs — — 1,234 MMBTUs — 153 Subtotal 179,471 MMBTUs 24,070 4,875 201,711 MMBTUs 16,864 8,859 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 syndicated loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure in the credit protection sold RPAs would be $ 590 thousand and $ 170 thousand as of December 31, 2025 and 2024, respectively. 118 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: December 31, 2025 December 31, 2024 Fair Value Fair Value ($ in thousands) Notional Amount Assets Liabilities Notional Amount Assets Liabilities RPAs — protection sold (1) $ 133,756 $ — $ 51 $ 133,174 $ — $ 12 RPAs — protection purchased 169,665 25 — 35,825 1 — Total RPAs $ 303,421 $ 25 $ 51 $ 168,999 $ 1 $ 12 (1) All reference entities of the protection sold RPAs were investment grade. 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 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 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: Year Ended December 31, ($ in thousands) Classification on Consolidated Statement of Income 2025 2024 2023 Derivatives not designated as hedging instruments: 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, 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 1,385 — — 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 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, 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. 119 Offsetting of Derivatives The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross fair values of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown: ($ in thousands) As of December 31, 2025 Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Gross Amounts Recognized (1) Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Net Amount Derivative assets $ 409,467 $ ( 74,138 ) $ ( 183,387 ) $ 151,942 $ ( 42,779 ) $ 109,163 Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Gross Amounts Recognized (2) Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Net Amount Derivative liabilities $ 385,973 $ ( 74,138 ) $ ( 27,502 ) $ 284,333 $ — $ 284,333 ($ in thousands) As of December 31, 2024 Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Gross Amounts Recognized (1) Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Net Amount Derivative assets $ 523,133 $ ( 111,124 ) $ ( 316,168 ) $ 95,841 $ ( 55,222 ) $ 40,619 Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance Sheet Gross Amounts Not Offset on the Consolidated Balance Sheet Gross Amounts Recognized (2) Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Net Amount Derivative liabilities $ 545,885 $ ( 111,124 ) $ ( 1,160 ) $ 433,601 $ — $ 433,601 (1) Includes $ 9 million and $ 4 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2025 and 2024, respectively. (2) Includes $ 16 million and $ 27 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2025 and 2024, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements were $ 184 million and $ 322 million as of December 31, 2025 and 2024, respectively. 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 $ 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. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts. In addition to the amounts included in the tables above, the Company 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. Refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K for fair value measurement disclosures on derivatives. 120 Note 6 — Loans Receivable and Allowance for Credit Losses The following table presents the composition of the Company’s loans held-for-investment outstanding as of December 31, 2025 and 2024: ($ in thousands) December 31, 2025 December 31, 2024 Commercial: C&I $ 18,650,755 $ 17,397,158 CRE: CRE 15,407,088 14,655,340 Multifamily residential 5,112,328 4,953,442 Construction and land 742,357 666,162 Total CRE 21,261,773 20,274,944 Total commercial 39,912,528 37,672,102 Consumer: Residential mortgage: Single-family residential 15,002,549 14,175,446 HELOCs 1,911,897 1,811,628 Total residential mortgage 16,914,446 15,987,074 Other consumer 51,198 67,461 Total consumer 16,965,644 16,054,535 Total loans held-for-investment (1) $ 56,878,172 $ 53,726,637 ALLL ( 809,773 ) ( 702,052 ) Loans held-for-investment, net (1) $ 56,068,399 $ 53,024,585 (1) Includes $ 26 million and $ 46 million of net deferred loan fees and net unamortized premiums as of December 31, 2025 and 2024, respectively. 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 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. The Company also has loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in this Form 10-K. The Company’s FRB and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $ 41.8 billion and $ 38.2 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of December 31, 2025 and 2024. Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings. The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10: • Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions. • Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.” • Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.” 121 • Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.” • Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.” Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans. The following tables summarize the Company’s loans held-for-investment and year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of December 31, 2025 and 2024. The vintage year is the year of loan origination, renewal or major modification. Revolving loans that are converted to term loans presented in the tables below are excluded from the term loans by vintage year columns. December 31, 2025 Term Loans by Origination Year ($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 3,013,368 $ 1,717,361 $ 880,267 $ 536,461 $ 391,413 $ 302,893 $ 11,308,551 $ 67,968 $ 18,218,282 Criticized (accrual) 572 35,223 1,662 93,562 83,813 6,771 158,626 — 380,229 Criticized (nonaccrual) 2,922 4,733 26,810 1,640 9,525 6,526 88 — 52,244 Total C&I 3,016,862 1,757,317 908,739 631,663 484,751 316,190 11,467,265 67,968 18,650,755 Gross write-offs (2) 2,617 1,199 28,752 4,643 1,063 3,170 24 — 41,468 CRE: Pass 2,615,789 1,562,420 2,015,433 3,188,363 1,708,927 3,607,918 78,712 47,512 14,825,074 Criticized (accrual) 30,275 29,807 116,862 134,018 48,569 183,937 — — 543,468 Criticized (nonaccrual) 3,317 — 4,172 7,439 12,330 11,288 — — 38,546 Subtotal CRE 2,649,381 1,592,227 2,136,467 3,329,820 1,769,826 3,803,143 78,712 47,512 15,407,088 Gross write-offs 8,932 — — 160 19 15,126 — — 24,237 Multifamily residential: Pass 895,323 338,209 478,782 1,138,693 663,916 1,547,124 32,207 3,820 5,098,074 Criticized (accrual) — — — 5,175 — 8,787 — — 13,962 Criticized (nonaccrual) — — — — — 292 — — 292 Subtotal multifamily residential 895,323 338,209 478,782 1,143,868 663,916 1,556,203 32,207 3,820 5,112,328 Gross write-offs — — — — — 8 — — 8 Construction and land: Pass 246,380 109,799 247,482 90,086 13,437 3,462 3,901 — 714,547 Criticized (nonaccrual) — 8,897 — 18,913 — — — — 27,810 Subtotal construction and land 246,380 118,696 247,482 108,999 13,437 3,462 3,901 — 742,357 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 Total CRE gross write-offs (2) 8,932 — — 160 19 15,134 — — 24,245 Total commercial $ 6,807,946 $ 3,806,449 $ 3,771,470 $ 5,214,350 $ 2,931,930 $ 5,678,998 $ 11,582,085 $ 119,300 $ 39,912,528 Total commercial gross write-offs (2) $ 11,549 $ 1,199 $ 28,752 $ 4,803 $ 1,082 $ 18,304 $ 24 $ — $ 65,713 122 December 31, 2025 Term Loans by Origination Year ($ in thousands) 2025 2024 2023 2022 2021 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Consumer: Residential mortgage: Single-family residential: Pass (3) $ 2,861,764 $ 1,837,821 $ 2,349,242 $ 2,808,694 $ 1,860,110 $ 3,228,996 $ — $ — $ 14,946,627 Criticized (accrual) 3,157 3,646 5,589 5,427 235 9,356 — — 27,410 Criticized (nonaccrual) (3) 4,566 891 3,445 4,617 1,620 13,373 — — 28,512 Subtotal single-family residential mortgage 2,869,487 1,842,358 2,358,276 2,818,738 1,861,965 3,251,725 — — 15,002,549 Gross write-offs (2) — 14 — — — — — — 14 HELOCs: Pass 13,652 4,796 4,740 5,258 11,233 22,213 1,750,894 70,577 1,883,363 Criticized (accrual) 1,879 — 97 140 287 526 6,784 1,654 11,367 Criticized (nonaccrual) 1,288 13 379 2,610 1,232 7,033 — 4,612 17,167 Subtotal HELOCs 16,819 4,809 5,216 8,008 12,752 29,772 1,757,678 76,843 1,911,897 Gross write-offs — — — — — — — 6 6 Total residential mortgage 2,886,306 1,847,167 2,363,492 2,826,746 1,874,717 3,281,497 1,757,678 76,843 16,914,446 Total residential mortgage gross write-offs (2) — 14 — — — — — 6 20 Other consumer: Pass 25,146 — — 4,635 129 5,570 15,576 — 51,056 Criticized (nonaccrual) — — 49 — — — 93 — 142 Total other consumer 25,146 — 49 4,635 129 5,570 15,669 — 51,198 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 Total consumer gross write-offs (2) $ — $ 14 $ — $ — $ — $ — $ — $ 6 $ 20 Total loans held-for-investment: Pass $ 9,671,422 $ 5,570,406 $ 5,975,946 $ 7,772,190 $ 4,649,165 $ 8,718,176 $ 13,189,841 $ 189,877 $ 55,737,023 Criticized (accrual) 35,883 68,676 124,210 238,322 132,904 209,377 165,410 1,654 976,436 Criticized (nonaccrual) 12,093 14,534 34,855 35,219 24,707 38,512 181 4,612 164,713 Total $ 9,719,398 $ 5,653,616 $ 6,135,011 $ 8,045,731 $ 4,806,776 $ 8,966,065 $ 13,355,432 $ 196,143 $ 56,878,172 Total loans held-for-investment gross write-offs (2) $ 11,549 $ 1,213 $ 28,752 $ 4,803 $ 1,082 $ 18,304 $ 24 $ 6 $ 65,733 123 December 31, 2024 Term Loans by Origination Year ($ in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Commercial: C&I: Pass $ 2,605,928 $ 1,508,948 $ 999,586 $ 612,015 $ 243,528 $ 295,884 $ 10,574,404 $ 23,032 $ 16,863,325 Criticized (accrual) 34,412 51,415 61,041 107,355 10,538 31,160 151,747 — 447,668 Criticized (nonaccrual) 3,822 29,181 20,273 10,666 3,225 9,135 9,863 — 86,165 Total C&I 2,644,162 1,589,544 1,080,900 730,036 257,291 336,179 10,736,014 23,032 17,397,158 Gross write-offs (2) 20 47,963 14,848 11,119 1,568 3,012 27,099 — 105,629 CRE: Pass 1,660,877 2,296,763 3,692,498 1,925,220 1,296,439 3,176,450 96,791 49,302 14,194,340 Criticized (accrual) 34,543 44,557 90,105 31,615 75,578 167,401 — 14,771 458,570 Criticized (nonaccrual) — — — — 1,756 674 — — 2,430 Subtotal CRE 1,695,420 2,341,320 3,782,603 1,956,835 1,373,773 3,344,525 96,791 64,073 14,655,340 Gross write-offs (2) — — — — — 3 — — 3 Multifamily residential: Pass 386,743 521,754 1,337,599 752,230 613,115 1,242,586 14,640 1,253 4,869,920 Criticized (accrual) — — 43,997 32,042 — 2,911 — — 78,950 Criticized (nonaccrual) — — — — — 4,572 — — 4,572 Subtotal multifamily residential 386,743 521,754 1,381,596 784,272 613,115 1,250,069 14,640 1,253 4,953,442 Gross write-offs — — — — — 10 — — 10 Construction and land: Pass 90,926 328,803 184,792 41,932 — 8,393 — — 654,846 Criticized (nonaccrual) — — 11,316 — — — — — 11,316 Subtotal construction and land 90,926 328,803 196,108 41,932 — 8,393 — — 666,162 Gross write-offs — — 2,289 — — — — — 2,289 Total CRE 2,173,089 3,191,877 5,360,307 2,783,039 1,986,888 4,602,987 111,431 65,326 20,274,944 Total CRE gross write-offs (2) — — 2,289 — — 13 — — 2,302 Total commercial $ 4,817,251 $ 4,781,421 $ 6,441,207 $ 3,513,075 $ 2,244,179 $ 4,939,166 $ 10,847,445 $ 88,358 $ 37,672,102 Total commercial gross write-offs (2) $ 20 $ 47,963 $ 17,137 $ 11,119 $ 1,568 $ 3,025 $ 27,099 $ — $ 107,931 124 December 31, 2024 Term Loans by Origination Year ($ in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Total Consumer: Residential mortgage: Single-family residential: Pass (3) $ 2,360,674 $ 2,762,921 $ 3,074,668 $ 2,079,323 $ 1,407,031 $ 2,437,446 $ — $ — $ 14,122,063 Criticized (accrual) 4,175 3,409 750 5,810 1,548 6,069 — — 21,761 Criticized (nonaccrual) (3) 2,716 9,673 1,929 2,035 2,404 12,865 — — 31,622 Subtotal single-family residential mortgage 2,367,565 2,776,003 3,077,347 2,087,168 1,410,983 2,456,380 — — 14,175,446 Gross write-offs (2) 9 — — — — — — — 9 HELOCs: Pass 7,453 3,288 4,071 3,236 7,570 8,152 1,648,337 99,488 1,781,595 Criticized (accrual) 1,436 — 1,420 — 135 2,064 2,338 594 7,987 Criticized (nonaccrual) 3,161 3,095 2,520 39 418 7,301 — 5,512 22,046 Subtotal HELOCs 12,050 6,383 8,011 3,275 8,123 17,517 1,650,675 105,594 1,811,628 Gross write-offs (2) — 10 — — — — — 5 15 Total residential mortgage 2,379,615 2,782,386 3,085,358 2,090,443 1,419,106 2,473,897 1,650,675 105,594 15,987,074 Total residential mortgage gross write-offs (2) 9 10 — — — — — 5 24 Other consumer: Pass 14,916 — 22,992 132 — 6,800 22,555 — 67,395 Criticized (nonaccrual) — — — — — — 66 — 66 Total other consumer 14,916 — 22,992 132 — 6,800 22,621 — 67,461 Gross write-offs (2) — 3,000 — — — — 890 — 3,890 Total consumer $ 2,394,531 $ 2,782,386 $ 3,108,350 $ 2,090,575 $ 1,419,106 $ 2,480,697 $ 1,673,296 $ 105,594 $ 16,054,535 Total consumer gross write-offs (2) $ 9 $ 3,010 $ — $ — $ — $ — $ 890 $ 5 $ 3,914 Total loans held-for-investment: Pass $ 7,127,517 $ 7,422,477 $ 9,316,206 $ 5,414,088 $ 3,567,683 $ 7,175,711 $ 12,356,727 $ 173,075 $ 52,553,484 Criticized (accrual) 74,566 99,381 197,313 176,822 87,799 209,605 154,085 15,365 1,014,936 Criticized (nonaccrual) 9,699 41,949 36,038 12,740 7,803 34,547 9,929 5,512 158,217 Total $ 7,211,782 $ 7,563,807 $ 9,549,557 $ 5,603,650 $ 3,663,285 $ 7,419,863 $ 12,520,741 $ 193,952 $ 53,726,637 Total loans held-for-investment gross write-offs (2) $ 29 $ 50,973 $ 17,137 $ 11,119 $ 1,568 $ 3,025 $ 27,989 $ 5 $ 111,845 (1) 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. (3) As of each of December 31, 2025 and 2024, $ 1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating. 125 Nonaccrual and Past Due Loans Loans that are 90 or more days past due are generally placed on nonaccrual status unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of December 31, 2025 and 2024: December 31, 2025 ($ in thousands) Current Accruing Loans Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Total Nonaccrual Loans Total Loans Commercial: C&I $ 18,572,467 $ 25,962 $ 82 $ 26,044 $ 52,244 $ 18,650,755 CRE: CRE 15,354,548 10,525 3,469 13,994 38,546 15,407,088 Multifamily residential 5,110,783 1,253 — 1,253 292 5,112,328 Construction and land 714,547 — — — 27,810 742,357 Total CRE 21,179,878 11,778 3,469 15,247 66,648 21,261,773 Total commercial 39,752,345 37,740 3,551 41,291 118,892 39,912,528 Consumer: Residential mortgage: Single-family residential 14,899,224 46,010 27,674 73,684 29,641 15,002,549 HELOCs 1,860,080 23,328 11,322 34,650 17,167 1,911,897 Total residential mortgage 16,759,304 69,338 38,996 108,334 46,808 16,914,446 Other consumer 50,979 56 21 77 142 51,198 Total consumer 16,810,283 69,394 39,017 108,411 46,950 16,965,644 Total $ 56,562,628 $ 107,134 $ 42,568 $ 149,702 $ 165,842 $ 56,878,172 December 31, 2024 ($ in thousands) Current Accruing Loans Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Total Nonaccrual Loans Total Loans Commercial: C&I $ 17,288,138 $ 5,690 $ 17,165 $ 22,855 $ 86,165 $ 17,397,158 CRE: CRE 14,647,270 3,755 1,885 5,640 2,430 14,655,340 Multifamily residential 4,947,939 653 278 931 4,572 4,953,442 Construction and land 653,919 927 — 927 11,316 666,162 Total CRE 20,249,128 5,335 2,163 7,498 18,318 20,274,944 Total commercial 37,537,266 11,025 19,328 30,353 104,483 37,672,102 Consumer: Residential mortgage: Single-family residential 14,088,086 32,841 22,096 54,937 32,423 14,175,446 HELOCs 1,770,218 11,396 7,968 19,364 22,046 1,811,628 Total residential mortgage 15,858,304 44,237 30,064 74,301 54,469 15,987,074 Other consumer 67,288 92 15 107 66 67,461 Total consumer 15,925,592 44,329 30,079 74,408 54,535 16,054,535 Total $ 53,462,858 $ 55,354 $ 49,407 $ 104,761 $ 159,018 $ 53,726,637 126 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. ($ in thousands) December 31, 2025 December 31, 2024 Commercial: C&I $ 21,723 $ 79,591 CRE 33,705 — Multifamily residential — 4,210 Construction and land 27,810 11,316 Total commercial 83,238 95,117 Consumer: Single-family residential 6,095 6,279 HELOCs 4,081 15,380 Total consumer 10,176 21,659 Total nonaccrual loans with no related ALLL $ 93,414 $ 116,776 Foreclosed Assets The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession). Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $ 21 million of foreclosed assets as of December 31, 2025, compared with $ 35 million as of December 31, 2024. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $ 16 million as of both December 31, 2025 and 2024. Loan Modifications to Borrowers Experiencing Financial Difficulty As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer loan borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure. 127 The following tables present the amortized cost of loans that were modified during the years ended December 31, 2025, 2024 and 2023 by loan class and modification type: Year Ended December 31, 2025 Modification Type Combination: ($ 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 Commercial: 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 % Consumer: Single-family residential — — 29,545 2,402 — — 31,947 0.21 % HELOCs — — 14,883 909 407 1,172 17,371 0.91 % Total consumer — — 44,428 3,311 407 1,172 49,318 0.29 % Total $ 6,057 $ 254,051 $ 96,332 $ 36,761 $ 407 $ 20,751 $ 414,359 0.73 % Year Ended December 31, 2024 Modification Type Combination: ($ 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 Commercial: C&I $ 57,102 $ 26,420 $ — $ — $ — $ 83,522 0.48 % CRE 86,258 — — 6,052 — 92,310 0.63 % Total commercial 143,360 26,420 — 6,052 — 175,832 0.47 % Consumer: Single-family residential — 15,397 222 — 140 15,759 0.11 % HELOCs — 14,303 — — 517 14,820 0.82 % Total consumer — 29,700 222 — 657 30,579 0.19 % Total $ 143,360 $ 56,120 $ 222 $ 6,052 $ 657 $ 206,411 0.38 % 128 Year Ended December 31, 2023 Modification Type Combination: ($ in thousands) Term Extension Payment Delay Term Extension/ Payment Delay Rate Reduction/ Term Extension Reduction/ Payment Delay Total Modification as a % of Loan Class Commercial: 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 % Consumer: 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) Commercial: 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 Consumer: 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 (in years) Commercial: C&I — % 2.1 1.7 CRE 1.28 % 2.7 0.0 Consumer: Single-family residential 1.63 % 10.0 1.3 HELOCs 0.25 % 0.0 1.7 129 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 (in years) Commercial: C&I $ 371 (1) — % (1) 1.3 0.9 CRE — 3.00 % 2.1 0.0 Consumer: Single-family residential — — % 9.3 1.8 HELOCs — 0.11 % 14.2 4.6 Total $ 371 (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 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: Rate Reduction/ Payment Delay Combination: Term Extension/ Payment Delay Total Commercial: C&I $ 206 $ 5,073 $ — $ — $ 5,279 CRE 29,991 — — — 29,991 Total commercial 30,197 5,073 — — 35,270 Consumer: Single-family residential — 3,706 — 1,038 4,744 HELOCs — 3,869 746 483 5,098 Total consumer — 7,575 746 1,521 9,842 Total $ 30,197 $ 12,648 $ 746 $ 1,521 $ 45,112 Loans Modified that Subsequently Defaulted During the Year Ended December 31, 2024 ($ in thousands) Term Extension Payment Delay Combination: Rate Reduction/ Payment Delay Combination: Term Extension/ Payment Delay Total Commercial: C&I $ 3,684 $ 4,937 $ — $ — $ 8,621 Total commercial 3,684 4,937 — — 8,621 Consumer: Single-family residential — 10,223 141 2,462 12,826 HELOCs — 4,690 517 — 5,207 Total consumer — 14,913 658 2,462 18,033 Total $ 3,684 $ 19,850 $ 658 $ 2,462 $ 26,654 130 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 Consumer: 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, 2025, 2024 and 2023. Payment Performance as of December 31, 2025 ($ in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total Commercial: C&I $ 185,058 $ 806 $ 2,165 $ 188,029 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 Consumer: Single-family residential 25,119 5,577 1,251 31,947 HELOCs 13,217 2,886 1,268 17,371 Total consumer 38,336 8,463 2,519 49,318 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 ($ in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total Commercial: C&I $ 71,324 $ 12,198 $ — $ 83,522 CRE 92,310 — — 92,310 Total commercial 163,634 12,198 — 175,832 Consumer: Single-family residential 9,082 4,218 2,459 15,759 HELOCs 8,591 3,069 3,160 14,820 Total consumer 17,673 7,287 5,619 30,579 Total $ 181,307 $ 19,485 $ 5,619 $ 206,411 Total nonaccrual loans included above $ 9,209 $ 142 $ 5,619 $ 14,970 131 Payment Performance as of December 31, 2023 ($ in thousands) Current 30-89 Days Past Due 90+ Days Past Due Total Commercial: 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 Consumer: Single-family residential 11,197 2,425 547 14,169 HELOCs 4,207 177 749 5,133 Total consumer 15,404 2,602 1,296 19,302 Total $ 113,900 $ 10,755 $ 10,602 $ 135,257 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 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. The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense. The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis. 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 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. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the ALLL. 132 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: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Age percentage, size at origination, delinquency status, sector and risk rating Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, GDP, and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and Home Price Indices Other consumer Loss rate approach Immaterial - Macroeconomic variables are included in the qualitative estimate. Quantitative Component — 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. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter, immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected probabilities of default (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period. To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Quantitative Component — 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. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the single-family residential and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach. Qualitative Component — The Company considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to: – loan growth trends; – the volume and severity of past due financial assets, and criticized or adversely classified financial assets; – the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices; – knowledge of a borrower’s operations; – the quality of the Company’s credit review system; – the experience, ability and depth of the Company’s management and associates; – the effect of other external factors such as the regulatory and legal environments, or changes in technology; – actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and – risk factors in certain industry sectors not captured by the quantitative models. 133 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 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. 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: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. • Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of December 31, 2025, collateral-dependent commercial and consumer loans totaled $ 69 million and $ 10 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $ 45 million and $ 23 million, respectively, as of December 31, 2024. The Company's collateral-dependent loans were secured by real estate. As of both 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 ALLL by portfolio segments for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, 2025 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total 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 Gross charge-offs ( 44,996 ) ( 24,237 ) ( 8 ) ( 1,996 ) ( 57 ) ( 6 ) ( 152 ) ( 71,452 ) Gross recoveries 10,721 229 60 12 306 22 263 11,613 Total net (charge-offs) recoveries ( 34,275 ) ( 24,008 ) 52 ( 1,984 ) 249 16 111 ( 59,839 ) Foreign currency translation adjustment 453 — — — — — — 453 ALLL, end of period $ 475,613 $ 221,494 $ 36,555 $ 15,468 $ 53,463 $ 5,804 $ 1,376 $ 809,773 134 Year Ended December 31, 2024 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total 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 Gross charge-offs ( 125,413 ) ( 14,236 ) ( 10 ) ( 2,289 ) ( 35 ) ( 15 ) ( 4,259 ) ( 146,257 ) Gross recoveries 6,505 413 436 203 9 73 — 7,639 Total net (charge-offs) recoveries ( 118,908 ) ( 13,823 ) 426 ( 2,086 ) ( 26 ) 58 ( 4,259 ) ( 138,618 ) Foreign currency translation adjustment ( 249 ) — — — — — — ( 249 ) 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 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Residential Construction and Land Single-Family Residential HELOCs Other Consumer Total 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 Gross charge-offs ( 36,573 ) ( 7,048 ) ( 3 ) ( 10,413 ) — ( 138 ) ( 197 ) ( 54,372 ) Gross recoveries 6,803 432 545 236 69 33 — 8,118 Total net (charge-offs) recoveries ( 29,770 ) ( 6,616 ) 542 ( 10,177 ) 69 ( 105 ) ( 197 ) ( 46,254 ) Foreign currency translation adjustment ( 247 ) — — — — — — ( 247 ) 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: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 12 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-K for additional information related to unfunded credit commitments. The following table summarizes the activity in the allowance for unfunded credit commitments for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Unfunded credit facilities Allowance for unfunded credit commitments, beginning of period $ 39,526 $ 37,699 $ 26,264 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 on loans, leases and unfunded credit commitments (a) + (b) $ 158,100 $ 174,000 $ 125,000 135 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, 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 The Company’s primary business focus is on directly originated loans. The Company also purchases loans from and participates in loan financing with other banks. In the normal course of business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to 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 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Construction and Land Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 282,252 $ 39,475 $ 9,500 $ — $ 331,227 Sales (2)(3) $ 264,445 $ 39,475 $ 11,316 $ 1,232 $ 316,468 Purchases (4) $ 450,314 $ — $ — $ 515,390 $ 965,704 Year Ended December 31, 2024 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Construction and Land Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 649,187 $ 9,417 $ 718 $ — $ 659,322 Sales (2)(3) $ 650,256 $ 9,417 $ 718 $ 2,997 $ 663,388 Purchases (4) $ 612,364 $ — $ — $ 387,629 $ 999,993 136 Year Ended December 31, 2023 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Construction and Land Single-Family Residential Total Loans transferred from held-for-investment to held-for-sale (1) $ 647,943 $ 83,282 $ 8,154 $ — $ 739,379 Sales (2)(3) $ 674,919 $ 86,749 $ 8,154 $ — $ 769,822 Purchases (4) $ 106,493 $ — $ — $ 493,282 $ 599,775 (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 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. (4) C&I loan purchases were comprised of syndicated C&I term loans. Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the affordable housing regulatory requirements for a 15 -year minimum compliance period. The Company also invests in small business investment companies and new markets tax credit projects that qualify for CRA consideration, as well as eligible projects that qualify for production, historic and renewable energy tax credits. Investments in new markets tax credits promote development in low-income communities; investments in production and renewable energy tax credits help promote the development of renewable energy sources; and investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. The majority of 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 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. 137 The following table presents the investments and unfunded commitments of the Company’s affordable housing partnership, tax credit, and CRA investments, net as of December 31, 2025 and 2024: December 31, 2025 2024 ($ in thousands) Assets Liabilities - Unfunded Commitments (1) Assets Liabilities - Unfunded Commitments (1) PAM: Affordable housing partnership investments $ 483,021 $ 172,343 $ 500,217 $ 280,919 Tax credit and CRA investments 140,723 43,878 160,429 21,202 Equity method of accounting and other: Tax credits and CRA investments 345,748 (2) 121,275 265,994 (2) 105,743 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: Year Ended December 31, ($ in thousands) 2025 2024 2023 Tax credits and benefits (1) : PAM: Affordable housing partnership investments $ 87,214 $ 70,335 $ 60,939 Tax credit and CRA investments 111,906 110,260 — Equity method of accounting and other: Tax credit and CRA investments 119,098 64,720 124,433 Total tax credits and benefits $ 318,218 $ 245,315 $ 185,372 Amortization (2) : PAM: Affordable housing partnership investments (3) $ 60,078 $ 46,113 $ 43,041 Tax credit and CRA investments (4) 88,883 90,113 — Equity method of accounting and other: Tax credit and CRA investments (5) (6) 74,795 54,242 120,299 Total amortization $ 223,756 $ 190,468 $ 163,340 (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. (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. (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. 138 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: ($ in thousands) Amount 2026 $ 279,856 2027 43,982 2028 6,034 2029 1,440 2030 1,931 Thereafter 4,253 Total $ 337,496 The Company also held equity securities without readily determinable fair values totaling $ 117 million and $ 118 million as of December 31, 2025 and 2024, respectively. These equity securities without readily determinable fair values are included in Other Assets on the Consolidated Balance Sheet. Note 8 — Goodwill 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 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. 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 The following table presents the composition of the Company’s deposits as of December 31, 2025 and 2024: December 31, ($ in thousands) 2025 2024 Deposits: Noninterest-bearing demand $ 16,697,099 $ 15,450,428 Interest-bearing checking 7,989,255 7,940,692 Money market 15,439,729 14,816,511 Savings: Domestic office 1,503,006 1,583,657 Foreign office 168,798 167,963 Time deposits (1) : Domestic office 22,694,862 21,128,657 Foreign office 2,589,952 2,087,115 Total deposits $ 67,082,701 $ 63,175,023 (1) The aggregate amount of time deposits that met or exceeded the deposit insurance limit was $ 18.3 billion and $ 16.5 billion as of December 31, 2025 and 2024, respectively. 139 The following table presents the scheduled maturities of time deposits for the five years succeeding December 31, 2025: ($ in thousands) Amount 2026 $ 24,796,653 2027 415,251 2028 68,605 2029 2,908 2030 1,397 Total $ 25,284,814 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: December 31, 2025 2024 ($ in thousands) Interest Rate Maturity Dates Amount Amount Parent company Junior subordinated debt (1) — floating 5.53 % 12/15/2035 $ 32,320 $ 32,001 Bank FHLB advances (2) : Floating (3) 3.87 % — 3.96 % 2026 $ 2,000,000 $ 3,000,000 Fixed 3.87 % — 4.01 % 2026 750,000 500,000 Overnight (4) 4.02 % 1/2/2026 250,000 — Total FHLB advances $ 3,000,000 $ 3,500,000 (1) As of December 31, 2025, the outstanding junior subordinated debt was issued by MCBI Statutory Trust I and had a stated interest rate of 3-month CME Term Secured Overnight Financing Rate ("SOFR") + 1.81 %. The contractual interest rates for junior subordinated debt were 5.53 % and 6.17 % as of December 31, 2025 and 2024, respectively. (2) The weighted-average interest rate for FHLB advances was 3.94 % as of December 31, 2025. (3) Floating interest rates are based on the SOFR plus the established spread. (4) Overnight interest rates are based on the Standard Credit Program’s Advance Rate, as published by the FHLB. FHLB Advances The Bank’s available borrowing capacity from FHLB advances totaled $ 11.8 billion as of December 31, 2025. The Bank’s available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB, reduced by any outstanding FHLB advances. As of December 31, 2025, all advances were secured by real estate loans. Long-Term Debt — Junior Subordinated Debt As of December 31, 2025, East West had one statutory business trust for the purpose of holding junior subordinated debt issued to third party investors. The proceeds from these issuances represent liabilities of East West to the Trust and are reported as a component of L o ng-term debt on the Consolidated Balance Sheet. Interest payments on these securities are disbursed quarterly and are deductible for tax purposes. Outstanding principal amounts included $ 35 million of junior subordinated debt and $ 1 million of t rust preferred securities as of December 31, 2025. 140 Note 11 — Income Taxes The following table presents the components of income before income taxes and income tax expense (benefit) for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Income before income taxes: U.S. $ 1,686,561 $ 1,429,104 $ 1,425,756 Foreign 38,899 52,757 34,014 Total income before income taxes 1,725,460 1,481,861 1,459,770 Current income tax expense: Federal 250,521 166,268 172,428 State 149,291 153,891 173,080 Foreign 8,235 10,399 2,240 Total current income tax expense 408,047 330,558 347,748 Deferred income tax (benefit) expense: Federal ( 20,242 ) ( 6,467 ) ( 24,319 ) State 12,897 ( 5,582 ) ( 23,415 ) Foreign ( 430 ) ( 2,234 ) ( 1,405 ) Total deferred income tax benefit ( 7,775 ) ( 14,283 ) ( 49,139 ) Total income tax expense: Federal 230,279 159,801 148,109 State 162,188 148,309 149,665 Foreign 7,805 8,165 835 Total income tax expense $ 400,272 $ 316,275 $ 298,609 141 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: Year Ended December 31, 2025 2024 2023 ($ in thousands) Amount Percent Amount Percent Amount Percent Statutory U.S. federal tax rate $ 362,347 21.0 % $ 311,191 21.0 % $ 306,552 21.0 % U.S. federal Tax credits (1) Tax credits and benefits under the PAM, net of amortization ( 29,268 ) ( 1.7 ) ( 26,147 ) ( 1.8 ) ( 4,299 ) ( 0.3 ) Energy tax credit — solar ( 42,406 ) ( 2.5 ) ( 52,722 ) ( 3.5 ) ( 70,364 ) ( 4.8 ) Energy tax credit — 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 ) U.S. 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 State California 120,000 102,061 100,000 New York 67,001 59,049 36,732 Other states 12,080 11,278 14,953 Foreign 13,120 6,186 — Total $ 278,182 $ 246,945 $ 291,685 142 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: December 31, ($ in thousands) 2025 2024 Deferred tax assets: Allowance for credit losses and nonperforming assets valuation allowance $ 251,494 $ 233,879 Net unrealized losses on AFS debt and transferred securities 142,141 223,814 Stock compensation and other accrued compensation 46,825 41,118 Lease liabilities 40,714 27,644 Tax credit and capital loss carryforwards 51,193 11,122 Basis difference in investments 16,430 17,708 Nonaccrual loans’ interest income 8,306 8,809 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: Operating lease right-of-use assets $ 37,225 $ 25,647 Basis difference in investments 26,203 25,587 Net unrealized gains on derivative hedges 14,704 — Equipment lease financing 7,206 10,395 Other 7,006 26,437 Total deferred tax liabilities $ 92,344 $ 88,066 Net deferred tax assets $ 474,004 $ 513,344 The Company has not repatriated and does not intend to repatriate earnings from its foreign subsidiary. The Company determined such earnings are to be indefinitely reinvested in the local jurisdiction. The related unrecognized deferred tax liability on these earnings is immaterial. 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. 143 The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Beginning balance $ 4,670 $ 1,193 $ 477 Additions for tax positions related to prior years — 2,698 (1) 459 Deductions for tax positions related to prior years ( 446 ) — — Additions for tax positions related to current year 547 779 257 Settlements with taxing authorities ( 2,019 ) (2) — — Ending balance $ 2,752 $ 4,670 $ 1,193 (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 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 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. We are routinely examined by tax authorities in these various jurisdictions. The Company is subject to federal income tax examination for the tax years 2022 and forward. 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 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. Note 12 — Commitments and Contingencies Commitments to Extend Credit — In the normal course of business, the Company provides loan commitments and letters of credit to customers on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. The following table presents the Company’s credit-related commitments as of December 31, 2025 and 2024: December 31, 2025 2024 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Loan commitments $ 4,927,242 $ 3,887,543 $ 716,718 $ 92,460 $ 9,623,963 $ 9,128,040 Commercial letters of credit and SBLCs 1,265,040 560,517 153,113 977,620 2,956,290 2,917,029 Total $ 6,192,282 $ 4,448,060 $ 869,831 $ 1,070,080 $ 12,580,253 $ 12,045,069 Loan commitments are agreements to lend to customers provided there are no violations of any conditions established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require commitment fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. 144 Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset existing accounts. As of December 31, 2025, total letters of credit of $ 3.0 billion consisted of SBLCs of $ 2.9 billion and commercial letters of credit of $ 31 million. In comparison, as of December 31, 2024, total letters of credit of $ 2.9 billion consisted of SBLCs of $ 2.9 billion and commercial letters of credit of $ 29 million. As of both December 31, 2025 and 2024, substantially all letters of credit were graded “Pass” using the Bank’s internal credit risk rating system. The Company applies the same credit underwriting criteria to extend loans, commitments, and conditional obligations to customers. Each customer’s creditworthiness is evaluated on a case-by-case basis. Collateral and financial guarantees may be obtained based on management’s assessment of a customer’s credit risk. Collateral may include cash, accounts receivable, inventory, personal property, plant and equipment, and real estate property. Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments, and amounted to $ 49 million and $ 39 million as of December 31, 2025 and 2024, respectively. 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. The following table presents the maximum potential future payments and carrying value of loans sold or securitized with recourse as of December 31, 2025 and 2024: Maximum Potential Future Payments Carrying Value (1) December 31, December 31, 2025 2024 2025 2024 ($ in thousands) Expire After One Year Through Three Years Expire After Three Years Through Five Years Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 15 $ 323 $ 2,799 $ 3,137 $ 4,375 $ 3,137 $ 4,375 Multifamily residential loans sold or securitized with recourse 124 40 14,832 14,996 14,996 15,895 17,770 Total $ 139 $ 363 $ 17,631 $ 18,133 $ 19,371 $ 19,032 $ 22,145 (1) Represents the unpaid principal balance. 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. In accordance with ASC 450, Contingencies , the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more than the amounts accrued. 145 While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information known to the Company as of December 31, 2025, the Company does not believe there are any pending legal proceedings to which the Company is a party that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company’s financial condition. In light of the inherent uncertainty in legal proceedings, however, there can be no assurance that the ultimate resolution will not exceed established reserves and it is possible that the outcome of a particular matter, or a combination of matters, may be material to the Company’s financial condition for a particular period, depending upon the size of the loss and the Company’s income for that particular period. Note 13 — Stock Compensation Plans Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stock, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of East West and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of December 31, 2025, 2024 and 2023. The total number of shares available for grant under the 2021 Stock Incentive Plan was approximately 3 million as of December 31, 2025. The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2025, 2024 and 2023: Year Ended December 31, ($ in thousands) 2025 2024 2023 Stock compensation costs $ 76,189 $ 45,535 $ 39,867 Related net tax benefits for stock compensation plans $ 3,041 $ 997 $ 8,959 Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle in shares of the Company’s common stock. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of 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- 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: Time-Based RSUs Performance-Based RSUs Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Outstanding, January 1, 2025 1,348,612 $ 75.70 282,061 $ 79.48 Granted 473,818 $ 95.20 88,660 $ 95.34 Vested ( 359,890 ) $ 78.17 ( 87,992 ) $ 81.35 Forfeited ( 110,516 ) $ 80.18 — $ — Outstanding, December 31, 2025 1,352,024 $ 81.51 282,729 $ 83.87 146 The weighted-average grant date fair value of the time-based RSUs granted during the years ended December 31, 2025, 2024, and 2023 was $ 95.20 , $ 76.44 , and $ 73.13 , respectively. The weighted-average grant date fair value of the performance-based RSUs granted during the years ended December 31, 2025, 2024 and 2023 was $ 95.34 , $ 80.28 and $ 79.93 , respectively. The total fair value of time-based RSUs that vested during the years ended December 31, 2025, 2024 and 2023 was $ 34 million, $ 25 million and $ 39 million, respectively. 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, 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. Employees can purchase shares at 90 % of the fair market price subject to an annual purchase limitation of $ 22,500 per employee. As of December 31, 2025, the Purchase Plan qualifies as a non-compensatory plan under Section 423 of the Internal Revenue Code and, accordingly, no compensation expense has been recognized. 2,000,000 shares of the Company’s common stock were authorized for sale under the Purchase Plan. During the years ended December 31, 2025 and 2024, 36,863 shares totaling $ 3 million and 41,563 shares totaling $ 3 million, respectively, were sold to employees under the Purchase Plan. As of December 31, 2025, there were 73,388 shares available under the Purchase Plan. Note 14 — Stockholders’ Equity and Earnings Per Share The following table presents the basic and diluted EPS calculations for the years ended December 31, 2025, 2024 and 2023. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in this Form 10-K. Year Ended December 31, ($ and shares in thousands, except per share data) 2025 2024 2023 Basic: Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 Basic weighted-average number of shares outstanding 138,342 (1) 138,898 141,164 Basic EPS $ 9.58 $ 8.39 $ 8.23 Diluted: Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 Less: Fair value changes of liability-classified equity contracts, net of tax (2) ( 996 ) — — Net income, diluted $ 1,324,192 $ 1,165,586 $ 1,161,161 Basic weighted-average number of shares outstanding 138,342 (1) 138,898 141,164 Add: 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. 147 Note 15 — Accumulated Other Comprehensive (Loss) Income The following table presents the changes in the components of AOCI balances for the years ended December 31, 2025, 2024 and 2023: ($ in thousands) Debt Securities (1) Cash Flow Hedges Foreign Currency Translation Adjustments (2) Total Balance, December 31, 2022 $ ( 694,815 ) $ ( 49,531 ) $ ( 21,283 ) $ ( 765,629 ) 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 Changes, net of tax 92,934 52,155 ( 56 ) 145,033 Balance, December 31, 2023 $ ( 601,881 ) $ 2,624 $ ( 21,339 ) $ ( 620,596 ) Net unrealized gains (losses) arising during the period 50,302 ( 87,447 ) ( 982 ) ( 38,127 ) Amounts reclassified from AOCI 9,427 64,036 — 73,463 Changes, net of tax 59,729 ( 23,411 ) ( 982 ) 35,336 Balance, December 31, 2024 $ ( 542,152 ) $ ( 20,787 ) $ ( 22,321 ) $ ( 585,260 ) 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 Changes, net of tax 188,920 48,996 1,734 239,650 Balance, December 31, 2025 $ ( 353,232 ) $ 28,209 $ ( 20,587 ) $ ( 345,610 ) (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 investments in non-U.S. operations, including related hedges. 148 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: Year Ended December 31, 2025 2024 2023 ($ in thousands) Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax Debt securities: 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 losses (gains) on AFS debt securities reclassified into net income (1) 937 ( 277 ) 660 ( 2,069 ) 612 ( 1,457 ) 6,862 (2) ( 2,029 ) 4,833 Amortization of unrealized losses on transferred securities (3) 15,038 ( 4,446 ) 10,592 15,452 ( 4,568 ) 10,884 15,860 ( 4,689 ) 11,171 Net change 268,341 ( 79,421 ) 188,920 84,642 ( 24,913 ) 59,729 131,938 ( 39,004 ) 92,934 Cash flow hedges: 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) 20,959 ( 6,071 ) 14,888 91,083 ( 27,047 ) 64,036 79,843 ( 23,411 ) 56,432 Net change 68,975 ( 19,979 ) 48,996 ( 33,299 ) 9,888 ( 23,411 ) 74,076 ( 21,921 ) 52,155 Foreign currency translation adjustments, net of hedges: 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 $ 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 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. In 2023, pre-tax amount also includes the terminated cash flow hedge where the forecasted cash flows were no longer probable to occur and was reported in Noninterest income on the Consolidated Statement of Income. Note 16 — Regulatory Requirements and Matters The Company and the Bank are subject to regulatory capital adequacy requirements administered by the respective federal banking agencies that are based largely under the Basel III Capital Rules. As standardized approaches institutions, the Basel III Capital Rules require that banking organizations, such as the Company and the Bank, to maintain a minimum Common Equity Tier 1 (“CET1”) capital ratio of at least 4.5 %, a Tier 1 capital ratio of at least 6.0 %, a total capital ratio of at least 8.0 %, and a Tier 1 leverage ratio of a least 4.0 % to be considered adequately capitalized. Failure to meet the minimum capital requirements can result in certain mandatory actions and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. The Company and the Bank are also subject to maintaining a capital conservation buffer of 2.5 % above the minimum risk-based capital ratios under the Basel III Capital Rules. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but which does not exceed the capital conservation buffer will face constraints on dividends, share repurchases and executive compensation based on the amount of the shortfall. 149 The Federal Deposit Insurance Corporation Improvement Act of 1991 requires that the federal regulatory agencies adopt regulations defining capital categories for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Under the agencies’ Prompt Corrective Action regulations, failure of a bank to be well capitalized results in an escalating series of adverse regulatory consequences. As of both December 31, 2025 and 2024, the Company and the Bank were both categorized as well capitalized based on applicable U.S. regulatory capital ratio requirements in accordance with Basel III standardized approaches, as set forth in the table below. The Company believes that no changes in conditions or events have occurred since December 31, 2025, which would result in changes that would cause the Company or the Bank to fall below the well capitalized level. The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2025 and 2024: Basel III December 31, 2025 December 31, 2024 (1) ($ in thousands) Amount Ratio Amount Ratio Minimum Regulatory Requirements Minimum Regulatory Requirements including Capital Conservation Buffer (3) Well-Capitalized Requirement Total capital (to risk-weighted assets) Company $ 9,480,208 16.4 % $ 8,561,797 15.6 % 8.0 % 10.5 % 10.0 % East West Bank $ 8,694,701 15.1 % $ 8,053,389 14.7 % 8.0 % 10.5 % 10.0 % Tier 1 capital (to risk-weighted assets) Company $ 8,721,523 15.1 % $ 7,839,816 14.3 % 6.0 % 8.5 % 6.0 % East West Bank $ 7,973,536 13.9 % $ 7,367,996 13.4 % 6.0 % 8.5 % 8.0 % CET1 capital (to risk-weighted assets) Company (2) $ 8,721,523 15.1 % $ 7,839,816 14.3 % 4.5 % 7.0 % N/A East West Bank $ 7,973,536 13.9 % $ 7,367,996 13.4 % 4.5 % 7.0 % 6.5 % Tier 1 leverage capital (to adjusted quarterly average assets) Company (2) $ 8,721,523 10.9 % $ 7,839,816 10.4 % 4.0 % 4.0 % N/A East West Bank $ 7,973,536 10.0 % $ 7,367,996 9.8 % 4.0 % 4.0 % 5.0 % N/A — Not applicable. (1) Reflected a delay of the estimated impact of CECL on regulatory capital in accordance with regulatory capital rules. (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, where applicable. Note 17 — Business Segments The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels where customers are served, and the products and services provided. The chief operating decision maker (“CODM”) is the Chairman and Chief Executive Officer of the Company. The CODM regularly reviews the Company’s operating results to allocate resources and assess performance. Operating segment results are also based on the Company’s internal management reporting process, which reflects the allocations of certain balance sheet and income statement line items. The CODM uses certain performance measures such as segment net income and considers variances of actual results from forecast results on a quarterly basis when making decisions on resource allocations between segments. The segment information presented is not indicative of how the segments would perform if they operated as independent entities. The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services. 150 The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance, equipment financing, and loan syndication. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging. The remaining centralized functions, including the corporate treasury activities of the Company, tax credit investment activity, eliminations of inter-segment amounts, and centrally managed departments, have been aggregated and included in the Treasury and Other segment. The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The Company’s internal reporting process consists of certain allocation methodologies for revenues and expenses, and the internal funds transfer pricing (“FTP”) process. The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of business segment net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Treasury and Other segment. The corporate treasury function within the Treasury and Other segment is responsible for the Company’s liquidity and interest rate management and manages the corporate interest rate risk exposure. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. Each segment’s net interest income represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s FTP process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Loan charge-offs and provision for credit losses are recorded to the segments, where the loans are recorded. Significant corporate overhead expenses incurred by centralized support areas in the Treasury and Other segment are allocated to the Consumer and Business Banking and Commercial Banking segments based on the segment’s estimated usage factors including, but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Amortization of tax credit and CRA investments and certain types of administrative expenses are generally not allocated to segments. 151 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: ($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other Total Year Ended December 31, 2025 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 (reversal of) credit losses 1,200,067 1,246,491 485,298 2,931,856 Provision for (reversal of) credit losses 26,044 152,085 ( 18,129 ) 160,000 Compensation and employee benefits 240,500 246,303 131,950 618,753 Other noninterest expense (1) 229,833 157,616 40,194 427,643 Total noninterest expense 470,333 403,919 172,144 1,046,396 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 Average balances: Loans $ 20,313,671 $ 34,000,936 $ 310,352 $ 54,624,959 Deposits $ 33,384,458 $ 27,137,950 $ 4,326,953 $ 64,849,361 As of December 31, 2025 Segment assets $ 21,384,121 $ 37,393,886 $ 21,656,990 $ 80,434,997 ($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other Total Year Ended December 31, 2024 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 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 Other noninterest expense (1) 234,494 161,969 10,876 407,339 Total noninterest expense 452,106 396,209 109,758 958,073 Segment income (loss) before income taxes 800,009 760,549 ( 78,697 ) 1,481,861 Segment net income $ 563,218 $ 535,652 $ 66,716 $ 1,165,586 Average balances: Loans $ 18,966,662 $ 32,996,221 $ 405,897 $ 52,368,780 Deposits $ 30,815,912 $ 25,820,956 $ 3,036,171 $ 59,673,039 As of December 31, 2024 Segment assets $ 20,084,814 $ 35,646,939 $ 20,244,722 $ 75,976,475 152 ($ in thousands) Consumer and Business Banking Commercial Banking Treasury and Other Total Year Ended December 31, 2023 Net interest income (loss) before provision for credit losses $ 1,225,954 $ 1,116,013 $ ( 29,713 ) $ 2,312,254 Noninterest income 103,210 168,502 21,400 293,112 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 Other noninterest expense (1) 261,406 158,949 91,703 512,058 Total noninterest expense 464,793 376,612 179,191 1,020,596 Segment income (loss) before income taxes 842,917 807,512 ( 190,659 ) 1,459,770 Segment net income (loss) $ 594,965 $ 570,153 $ ( 3,957 ) $ 1,161,161 Average balances: Loans $ 17,739,984 $ 31,365,547 $ 439,605 $ 49,545,136 Deposits $ 28,174,781 $ 23,304,066 $ 3,483,884 $ 54,962,731 As of December 31, 2023 Segment assets $ 19,165,172 $ 35,020,106 $ 15,427,606 $ 69,612,884 (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 The following tables present the Parent Company-only condensed financial statements: CONDENSED BALANCE SHEET December 31, ($ in thousands) 2025 2024 ASSETS Cash and cash equivalents $ 664,002 $ 394,919 Investments in subsidiaries: Bank 8,151,065 7,251,084 Nonbank 11,003 10,423 Other assets 130,535 125,552 TOTAL $ 8,956,605 $ 7,781,978 LIABILITIES AND STOCKHOLDERS’ EQUITY Long-term debt $ 32,320 $ 32,001 Other liabilities 25,083 26,923 Stockholders’ equity 8,899,202 7,723,054 TOTAL $ 8,956,605 $ 7,781,978 153 CONDENSED STATEMENT OF INCOME Year Ended December 31, ($ in thousands) 2025 2024 2023 Dividends from subsidiaries: Bank $ 750,000 $ 540,000 $ 704,000 Nonbank 66 127 322 Other investment income (losses) (1) 2,115 ( 954 ) ( 2,738 ) Other income 714 31 — Total income 752,895 539,204 701,584 Interest expense on long-term debt 2,527 4,507 10,889 Compensation and employee benefits 11,132 7,283 7,204 Other expense (income) (2) 1,850 1,839 ( 1,086 ) Total expense 15,509 13,629 17,007 Income before income tax benefit and equity in undistributed income of subsidiaries 737,386 525,575 684,577 Income tax benefit 3,510 4,143 5,844 Undistributed earnings of subsidiaries, primarily bank 584,292 635,868 470,740 Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 (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 Year Ended December 31, ($ in thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 1,325,188 $ 1,165,586 $ 1,161,161 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiaries, principally bank ( 584,292 ) ( 635,868 ) ( 470,740 ) Deferred income tax expense 62 2,788 948 Net change in other assets ( 5,549 ) ( 6,912 ) ( 4,160 ) Net change in other liabilities ( 1,686 ) ( 802 ) ( 47 ) Other operating activities, net 1,083 1,265 2,443 Net cash provided by operating activities 734,806 526,057 689,605 CASH FLOWS FROM INVESTING ACTIVITIES AFS debt securities: Proceeds from maturities 1,945,000 — — Purchases ( 1,944,333 ) — — Redemption of trust preferred securities — 3,558 — Other investing activities, net ( 732 ) ( 494 ) ( 95,095 ) Net cash (used in) provided by investing activities ( 65 ) 3,064 ( 95,095 ) CASH FLOWS FROM FINANCING ACTIVITIES Long-term debt: Repayment of junior subordinated debt — ( 116,558 ) — Common stock: Proceeds from issuance pursuant to various stock compensation plans and agreements 3,212 3,023 3,208 Stock tendered for payment of withholding taxes ( 19,239 ) ( 14,877 ) ( 23,751 ) Repurchase of common stock pursuant to the stock repurchase program ( 115,590 ) ( 143,082 ) ( 82,174 ) Cash dividends paid ( 334,041 ) ( 308,478 ) ( 274,554 ) Net cash used in financing activities ( 465,658 ) ( 579,972 ) ( 377,271 ) Net increase (decrease) in cash and cash equivalents 269,083 ( 50,851 ) 217,239 Cash and cash equivalents, beginning of year 394,919 445,770 228,531 Cash and cash equivalents, end of year $ 664,002 $ 394,919 $ 445,770 154 Note 19 — Subsequent Events 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. 155 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.