INVESTOR PRESENTATION August 2017 Safe Harbor Statement This - - PowerPoint PPT Presentation

SLIDE 1

Second Quarter 2017

INVESTOR PRESENTATION

August 2017

SLIDE 2

Safe Harbor Statement

2

This presentation may include forward-looking statements that involve inherent risks and uncertainties. East West Bancorp, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in any forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which East West Bancorp and its subsidiaries operate, inflation or deflation, fluctuation in interest rates, legislation and governmental regulations, investigation of acquired banks and other factors discussed in the Company’s filings with the SEC.

SLIDE 3

East West Profile

GREATER CHINA

10 Locations

5 Full-service branches 5 Representative offices 3 Seattle Las Vegas Los Angeles San Diego Houston Dallas Atlanta New York Boston Across 60+ cities in 10 metropolitan areas

UNITED STATES

120+ Locations 89 U.S. branches in California

Chongqing Beijing Taipei Guangzhou Xiamen Shanghai & Shanghai FTZ Hong Kong Shantou Shenzhen

East West Bank is the largest independent bank based in Los Angeles, CA.

With $36 billion in total assets, 44 years of operating history, and 2,900 associates, East West Bank is the leading bank serving the Asian community in the U.S.

130+ LOCATIONS

THROUGHOUT

San Francisco

SLIDE 4

East West Bank Milestones

4

1973

First EWB Branch

• pens for business.

First S&L bank serving the Asian American market in Southern California.

1999

EWBC begins to trade on Nasdaq.

2009

Acquired $10 billion United Commercial Bank and doubled asset size to over $20 billion. Acquired China banking license.

2017 1H

Net income: $288 million and assets of $36 billion.

1991

Assets exceed $1 billion.

1995

Converted to state chartered commercial Bank.

1998

Initiated management- led buyout.

2005

Annual net income exceeds $100 million.

2007

First full-service branch in Greater China opened in Hong Kong.

2014

Presence expanded in TX and CA with acquisition of $2 billion in assets MetroCorp. Opened new branches in Shanghai FTZ and Shenzhen.

1980s

Branch network expanded in CA.

The Beginning Going Public Size Doubles Expansion in TX and CA Today

SLIDE 5

East West Bank’s Advantage

• China is the 2nd largest

world economy.

• Foreign direct investment in

the U.S. continues to rise.

• Cross-border trade between

U.S. and Greater China companies is strong.

• EWB is 1 of 3 U.S. banks

with a banking license in China.

• 10 locations in Greater

China.

• Largest U.S. bank serving

the Asian community.

• Among the top 30 largest

public banks.

• Bank of choice for new

Chinese-American immigrants.

• Ranked by Forbes as top

15 of America’s best banks since 2010.

• Knowledge and

experience in:

• Culture
• Geography
• Economics
• Business practices
• Well-connected with

business leaders and service professionals.

• Cross-border products

and services.

• Long-term relationship

building.

THE U.S. FACTOR THE CHINA FACTOR BRIDGE BANKING EXPERTISE VALUE FOR CUSTOMERS

5

• Help navigate complicated

business transactions.

• Broaden opportunities with
• ur partners and resources.
• Customized solutions meet

the unique financial needs across various industries.

• Beyond banking approach

helps customers assimilate seamlessly into a new country.

SLIDE 6

Rank Total Assets (as of 06.30.17) Ticker $ Billion Rank Market Cap (as of 07.31.17) Ticker $ Billion 1 JPMorgan Chase & Co. JPM 2,563.2 1 JPMorgan Chase & Co. JPM 323.0 2 Bank of America Corporation BAC 2,254.5 2 Wells Fargo & Company WFC 267.9 3 Wells Fargo & Company WFC 1,930.9 3 Bank of America Corporation BAC 238.3 4 Citigroup Inc. C 1,864.1 4 Citigroup Inc. C 186.5 5 U.S. Bancorp USB 463.8 5 U.S. Bancorp USB 88.6 6 PNC Financial Services Group, Inc. PNC 372.2 6 PNC Financial Services Group, Inc. PNC 61.8 7 Bank of New York Mellon Corporation BK 354.8 7 Bank of New York Mellon Corporation BK 54.8 8 Capital One Financial Corporation COF 350.6 8 Capital One Financial Corporation COF 41.7 9 State Street Corporation STT 238.3 9 BB&T Corporation BBT 38.2 10 BB&T Corporation BBT 221.2 10 State Street Corporation STT 34.9 11 SunTrust Banks, Inc. STI 207.2 11 SunTrust Banks, Inc. STI 27.6 12 Citizens Financial Group, Inc. CFG 151.4 12 M&T Bank Corporation MTB 24.9 13 Fifth Third Bancorp FITB 141.1 13 Northern Trust Corporation NTRS 20.0 14 KeyCorp KEY 135.8 14 Fifth Third Bancorp FITB 19.7 15 Northern Trust Corporation NTRS 125.6 15 KeyCorp KEY 19.7 16 Regions Financial Corporation RF 124.7 16 Citizens Financial Group, Inc. CFG 17.7 17 M&T Bank Corporation MTB 120.9 17 Regions Financial Corporation RF 17.5 18 Huntington Bancshares Incorporated HBAN 101.4 18 First Republic Bank FRC 15.8 19 First Republic Bank FRC 81.0 19 Huntington Bancshares Incorporated HBAN 14.4 20 Comerica Incorporated CMA 71.4 20 Comerica Incorporated CMA 12.7 21 Zions Bancorporation ZION 65.4 21 SVB Financial Group SIVB 9.4 22 SVB Financial Group SIVB 48.4 22 Zions Bancorporation ZION 9.2 23 People's United Financial, Inc. PBCT 43.0 23 East West Bancorp, Inc. EWBC 8.2 24 Popular, Inc. BPOP 41.2 24 Signature Bank SBNY 7.6 25 Signature Bank SBNY 40.7 25 People's United Financial, Inc. PBCT 6.0 26 East West Bancorp, Inc. EWBC 35.9 26 Commerce Bancshares, Inc. CBSH 5.9 27 First Citizens BancShares, Inc. FCNCA 34.8 27 PacWest Bancorp PACW 5.8 28 BOK Financial Corporation BOKF 32.3 28 Cullen/Frost Bankers, Inc. CFR 5.8 29 F.N.B. Corporation FNB 30.8 29 BOK Financial Corporation BOKF 5.6 30 Synovus Financial Corp. SNV 30.7 30 Bank of the Ozarks OZRK 5.5

Bank Rankings by Total Assets and Market Cap

6

Source: S&P Global Market Intelligence (SNL Financial).

SLIDE 7

Strong Balance Sheet Growth

7

Total Assets Stockholders' Equity Total Loans

* CAGR from December 31, 2007 – June 30, 2017.

Total Deposits

($ in billions)

SLIDE 8

Diluted EPS

Strong Earnings Growth

8

UCBH acquisition

• Nov. 2009

doubles bank size

Net Earnings ($ in millions)

+12% +11% +15% +12% +18% +12% +11% +18% +6% +14%

+17% y-o-y (oper.*)

$288 $1.98

* YTD 2017 includes 1Q17 gain on sale of commercial property, which is considered non-operating. See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release.

+17% y-o-y (oper.*)

SLIDE 9

Steadily Growing Equity While Maintaining Robust TCE

9 +32 bps +14 bps +11 bps (42) bps (9) bps +11% +6% +13% +11% +12%

UCBH acquisition

• Nov. 2009

doubles bank size

+8% +43 bps

SLIDE 10

10% 1%

Outperforming Peers on Key Profitability Metrics

10

Note: Industry average based on FDIC’s 1Q17 Quarterly Banking Profile for FDIC insured banks with asset size $10bn to $250bn. Source: FDIC and S&P Global Market Intelligence (SNL Financial). * See reconciliation of GAAP to non-GAAP financials in the Company’s Earnings Press Releases. 1Q17 results exclude the impact from gain on sale of commercial property.

2% 50%

SLIDE 11

Highlights of Second Quarter 2017 Results

Strong earnings results.

• Net income increased 15% Y-o-Y and EPS increased 14% Y-o-Y
• Net interest income growth: 2Q17 NII of $290mm was up 7% Q-o-Q
• Asset sensitivity: loan yield expansion outpaced deposit cost increase and 2Q17

NIM of 3.49% was up by 16 bps.

• Excluding discount accretion, adj.* NIM of 3.41% was up by 12 bps Q-o-Q.
• Excluding discount accretion, adj.* loan yield of 4.30% was up by 13 bps Q-o-Q.
• Cost of deposits increased a modest 4 bps Q-o-Q.
• Pre-tax, pre-provision income growth: Driven by revenue growth, adj.* pre-tax, pre-

provision income of $198mm grew by 10% Q-o-Q.

Solid balance sheet growth.

• Loans grew 11% linked quarter annualized (“LQA”).
• Deposits grew 8% LQA.

Steady credit quality.

• Annualized net recoveries of 4 bps in 2Q17.
• NPAs decreased by $12mm, or 8%, Q-o-Q to $133mm; equivalent to 0.37% of total

assets as of 06.30.17.

11

Net income $118.3 million Diluted EPS $0.81 Tangible equity*/share $21.93 Record loans $27.2 billion Record deposits $31.2 billion

* See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release.

SLIDE 12

Updated Management Outlook: Full Year 2017

12

Earnings drivers Revised full year 2017

• utlook

(after 2Q17) Change from prior

• utlook

(after 1Q17) 2016 FY actual 1H17 actual

End of Period Loans

• Increase at a percentage rate in

the low double digits. Unchanged. $25.5 billion, +8% Y-o-Y $27.2 billion, +13% YTD annualized NIM (excl. impact of ASC 310-30 discount accretion)

• In the range of 3.35% to 3.45%.
• Favorable asset sensitivity

position to support NIM expansion. Unchanged. 3.15% 3.35% Noninterest Expense (excl. tax credit investment & core deposit intangible amortization)

• Increase at a percentage rate in

the low single digits. Unchanged. $538 million, +14% Y-o-Y $276 million, +3% YTD annualized Provision for Credit Losses

• In the range of $40mm to

$50mm. Unchanged. $27 million $18 million Tax Items (renewable energy & historical tax credits)

• Tax credit investments of

$115mm.

• Associated tax credit amortization
• f $95mm.
• Effective tax rate of 26%.
• Prior tax credit

investments: $95mm.

• Prior tax credit

amortization: $75mm.

• Prior tax rate range: 26%

to 29%. Effective tax rate: 24.6% Effective tax rate: 25.3% Interest Rates

• Outlook incorporates the current

forward rate curve.

• Anticipates one more Fed Funds

rate increase in Dec. 2017. Previously, anticipated additional Fed Funds rate increases in Jun. & Nov. 2017. Fed Funds increased +25bps in Dec. 2016. Fed Funds increased +25bps each in Mar. & Jun. 2017.

SLIDE 13

$103.3 $110.1 $110.7 $128.2 $118.3 $41.5 12.7% 13.1% 12.9% 14.9% 13.0% 15.3% 15.6% 15.3% 17.6% 15.3% 10% 13% 16% 19% 22% 25% $0 $40 $80 $120 $160 $200 2Q16 3Q16 4Q16 1Q17* 2Q17 $ in millions

Net Income & ROE* and Tangible ROE*

Net income (LH axis) 1Q17: Gain on commercial property (LH axis) Return on Avg. Equity (RH axis)

• Tang. Return on Avg. Tang. Eq. (RH axis)

$103.3 $110.1 $110.7 $128.2 $118.3 $41.5 1.27% 1.33% 1.27% 1.49% 1.36% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% $0 $40 $80 $120 $160 $200 2Q16 3Q16 4Q16 1Q17* 2Q17 $ in millions

Net Income & ROA*

Net income (LH axis) 1Q17: Gain on commercial property (LH axis) Return on Avg. Assets (RH axis)

2Q17 Earnings Growth and Profitability

13

• 2Q17 net income of $118mm, EPS of $0.81, ROA of

1.36%, ROE of 13.0% and tangible ROE* of 15.3%.

• Consistently attractive profitability:
• 5-quarter range of ROA*: 1.27% to 1.49%.
• 5-quarter range of ROE*: 12.7% to 14.9%.
• 5-quarter range of tangible ROE*: 15.3% to 17.6%.

* See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release. 1Q17 adjusted for the impact of the commercial property sale.

$1.16 $169.7 $169.7 0%

SLIDE 14

9.1 9.3 9.6 10.0 10.2 8.5 8.5 8.7 9.0 9.1 1.4 1.5 1.6 1.7 1.8 3.2 3.4 3.5 3.7 4.0 2.1 2.1 2.1 2.1 2.1 0% 20% 40% 60% $0 $10 $20 $30 2Q16 3Q16 4Q16 1Q17 2Q17 $ in billions

Total Loans*

C&I CRE MFR SFR Consumer LQA growth rate

38% 38% 38% 38% 37% 35% 34% 34% 34% 34% 6% 6% 6% 6% 6% 13% 14% 14% 14% 15% 8% 8% 8% 8% 8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2Q16 3Q16 4Q16 1Q17 2Q17

Loan Portfolio Mix

C&I CRE MFR SFR Consumer

2Q17 Record Loans of $27.2 billion

14

$24.3 $24.8 $25.5 $26.5

* Total loans held for investment and held for sale, with HFS by category. CRE = CRE, construction and land. Consumer = predominantly HELOCs.

Q-o-Q Difference

• Total loans increased $732mm or 3% (+11% LQA).
• SFR: +8.1%, or +33% LQA.
• C&I: +2.7%, or +11% LQA.
• CRE (with land & construction): +1.5%, or +6% LQA.
• MFR: +2.3%, or +9% LQA.
• Consumer: flat growth.
• 2Q growth rate in line with full year 2017 outlook of

low double digit loan growth.

• Stable loan portfolio mix, balanced between

commercial, commercial real estate, and consumer categories.

$27.2

SLIDE 15

Specialized Industry Verticals: Cross-Border Growth

15

Total Loans $27.2 bn C&I loans $10.2 bn or 37% Specialized Industry $3.7 bn or 37%

Includes Includes

Portfolio distribution data as of June 30, 2017. * Other Specialized Lending comprises Agriculture, Clean Tech, Equipment Finance, Health Care and Life Science.

• Specialized Industry lending verticals have grown

to $3.7 bn. Growth in these niches is driven by Bridge Banking, EWBC’s strategy of facilitating cross-border commercial opportunities.

SLIDE 16

• CRE concentration under FFIEC guidelines as of 06.30.17 was 261%, compared to 260% as of 12.31.16,

and 265% as of 06.30.16.

• Room to prudently grow CRE loans for high quality projects, while remaining below the 300% FFIEC

exposure threshold.

16

Diversified Commercial Real Estate Portfolio

* Total CRE portfolio of $9.1 billion includes construction & land loans, which were $661 million as of 06.30.17. Construction & land excluded from LTV distribution chart.

1 LTV based on current loan balance and appraisal value at origination or renewal.

CRE* Property Type Distribution (as of 06.30.17) CRE* LTV Distribution (as of 06.30.17)

$9.1 billion

CRE loan portfolio

$2.2 million

• Avg. outstanding

CRE loan size

53%

• Avg. LTV1

SLIDE 17

9.5 9.5 10.2 10.7 10.5 7.4 7.7 8.2 8.0 8.2 5.6 5.8 5.9 6.0 6.4 5.7 5.6 5.6 5.8 6.1 0% 20% 40% 60% $0 $10 $20 $30 $40 2Q16 3Q16 4Q16 1Q17 2Q17 $ in billions

Total Deposits

DDA MMDA IB checking & Savings Time LQA growth rate

2Q17 Record Deposits of $31.2 billion

17

DDA = Noninterest-bearing checking deposits. MMDA = Money market deposits. IB checking = Interest-bearing checking deposits.

$28.2 $29.9 $30.5 $28.6

Q-o-Q Difference

• Total deposits increased $611mm or 2% (+8% LQA).
• IB checking & savings: +6.2%, or +25% LQA.
• Time deposit: +4.0%, or +16% LQA.
• MMDA: +2.5%, or +10% LQA.
• DDA: -1.9%, or -7% LQA.
• DDAs comprised 34% of total deposits as of

06.30.17, similar to 35% as of 03.31.17.

• Over past 5 quarters, share of DDAs in total deposits

ranged from 33% to 35%.

• Over past 5 quarters, share of time deposits in total

deposits ranged from 19% to 20%.

• EOP loan-to-deposit ratio of 87.4%.
• Room to support organic loan growth and to maintain

discipline in deposit pricing.

$31.2 34% 33% 34% 35% 34% 26% 27% 27% 26% 26% 20% 20% 20% 20% 21% 20% 20% 19% 19% 19% 0% 20% 40% 60% 80% 100% 2Q16 3Q16 4Q16 1Q17 2Q17

Deposit Portfolio Mix

DDA MMDA IB checking & Savings Time

SLIDE 18

2Q17 Summary Income Statement

18 % Change vs.

($ in millions, except per share data)

2Q17 1Q17 2Q16

2Q17 Comments

Adjusted net interest income (excl. accretion) $ 283.8 5.6% 18.1%

• Loan growth & higher interest rates.

ASC 310-30 discount accretion income $ 6.3 NM NM

• Increase due to interest recoveries.

Net interest income $ 290.1 6.6% 14.4% Fees & operating income $ 42.1 8.5% 15.9%

• Broad-based across categories.

Net gains on sales of fixed assets $ 1.0 NM NM

• Sale of commercial property in 1Q17

resulted in $72mm pre-tax gain. Net gains on sales of loans & securities $ 4.3 (18.4)% (25.4)% Total Noninterest income $ 47.4 (59.1)% 7.1% Adjusted noninterest expense $ 139.5 1.9% 5.0%

• Lower comp. (seasonally high in 1Q).

Tax credit and other investments amortization $ 27.9 94.1% 99.0%

• Additional tax credit closed in 2Q

increased amortization expense.

• Expecting $25mm/qtr. rest of year.

Amortization of core deposit intangibles $ 1.8 (3.0)% (14.1)% Total Noninterest expense $ 169.1 10.5% 13.6% Provision for credit losses $ 10.7 51.2% 76.5% Income tax expense $ 39.4 (32.5)% (0.7)%

• Effective tax rate of 25.0% in 2Q.

Net income $118.3 (30.3)% 14.6% Diluted EPS $ 0.81 (30.2)% 14.1%

Note: 1Q17 results include gain on commercial property sale. See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release.

SLIDE 19

240.3 247.0 261.1 268.9 283.8 13.3 7.1 11.6 3.2 6.3 $220 $240 $260 $280 $300 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

Net Interest Income

• Adj. net interest income*

Accretion income

• 2Q17 NIM of 3.49% expanded by 16 bps Q-o-Q, and

excluding the impact of accretion, adjusted* NIM of 3.41% expanded by 12 bps Q-o-Q.

• NIM benefitted from balance sheet asset sensitivity and rising

short-term interest rates.

• 2Q17 loan yield of 4.40% expanded by 17 bps Q-o-Q, and

adjusted* loan yield of 4.30% expanded by 13 bps Q-o-Q.

• 2Q17 cost of deposits of 0.36% increased by 4 bps Q-o-Q.

2Q17 Net Interest Income & Net Interest Margin

19

$253.6 $254.1 $272.7 $272.1

• 2Q17 NII of $290mm increased Q-o-Q by $18mm, or 7%.
• Increase in adjusted* NII of $15mm or 6%.
• ASC 310-30 discount accretion income increase of $3mm.
• Remaining ASC 310-30 discount of $43mm as of 06.30.17,
• f which approx. $29mm expected to accrete as income.
• Adjusted NII, excluding accretion income, of $284mm

increased by 6% Q-o-Q.

• Driven by loan growth & higher loan yields in 2Q17.

* See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release.

$290.1 3.13% 3.16% 3.17% 3.29% 3.41% 4.05% 4.05% 4.13% 4.17% 4.30% 0.29% 0.30% 0.31% 0.32% 0.36% 3.00% 3.20% 3.40% 3.60% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2Q16 3Q16 4Q16 1Q17 2Q17

NIM (ex. accretion) (RH axis) Loans yield (ex. accretion) (LH axis) Total cost of deposits (LH axis)

Adjusted* NIM: Adj.* Loans Yield & Cost of Deposits

SLIDE 20

10.4 10.4 10.2 10.3 10.7 2.8 4.0 3.4 4.5 3.5 4.3 6.1 5.3 5.0 5.9 10.9 10.9 14.4 11.1 12.0 1.4 5.8 7.0 2.5 3.8 6.5 7.7 7.2 5.4 6.2 $0 $10 $20 $30 $40 $50 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

Total Fees and Other Operating Income

Branch fees Wealth management fees Ancillary loan fees & other income LC fees & FX income Derivative fees & other income Other fees & operating income

Q-o-Q Difference

• Excluding net gains on sale of loans,

securities, and fixed assets, fees and other

• perating income of $42mm increased by

$3mm or 9%.

• Most customer-related fee income categories

increased linked quarter.

• Adjusted for interest rate valuation marks and

valuation changes associated with currency hedges, customer-related fee income increased by 6% linked quarter and 25% year-

• ver-year.

2Q17 Fees & Other Operating Income

20 $36.3 $44.9 $47.5 $38.8 $42.1

SLIDE 21

• 2Q17 total noninterest expense: $169mm.
• Excluding tax credit amortization and core deposit intangible

amortization, 2Q17 adjusted* noninterest expense of $139.5mm increased by a modest 2% Q-o-Q.

• Compensation expense lower in 2Q, after seasonally higher 1Q.
• 2Q17 adj. noninterest expense growth rate in line with full

year 2017 outlook of low single digit growth.

• 2Q17 adj.* efficiency ratio of 41.3%.

2Q17 Efficiency and PTPP Profitability

21

1

• Growing adjusted* pre-tax, pre-provision (PTPP) income.
• 2Q17 adj. PTPP income of $198mm grew by 10% Q-o-Q

and 20% Y-o-Y.

• NII growth driven by loan growth and higher interest rates.
• Growth in customer-related fee income categories.
• Disciplined expense management.
• 2Q17 adj.* PTPP profitability ratio of 2.27% increased by

18 bps Q-o-Q.

• 5-quarter adj.* PTPP profitability ratio range of 2.03% to

2.27%.

* See reconciliation of GAAP to non-GAAP financials on slides 29-32 and in the Company’s 2Q17 Earnings Press Release.

$165.0 $167.6 $182.8 $179.6 $198.0 2.04% 2.03% 2.10% 2.09% 2.27% 1.00% 1.32% 1.64% 1.96% 2.28% $0 $50 $100 $150 $200 $250 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

• Adj. PTPP income* (LH axis)
• Adj. PTPP profitability ratio* (RH axis)

Adj.* PTPP Income & PTPP Profitability Ratio

$132.8 $135.9 $138.7 $136.9 $139.5 44.6% 44.8% 43.2% 43.3% 41.3% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% $100 $120 $140 $160 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

• Adj. noninterest expense* (LH axis)
• Adj. efficiency ratio* (RH axis)

Adj.* Noninterest Expense & Efficiency Ratio

SLIDE 22

• Allowance for loan losses to loans HFI was 1.02% as of

06.30.17.

• Annualized net recoveries of 4 bps in 2Q17.
• Net recoveries across all loan categories.
• Greatest impact from net recoveries in C&I: $1.7mm or 7 bps,

annualized.

• NPAs decreased by $12mm, or 8%, Q-o-Q to $133mm;

equivalent to 0.37% of total assets as of 06.30.17.

• 5-quarter NPA to total assets range of 0.37% to 0.54%.

2Q17 Asset Quality Metrics

22

* Nonperforming assets and net charge-offs exclude purchased credit impaired loans. HFI represents held-for-investment.

$6.1 $9.5 $10.5 $7.1 $10.7 0.01% 0.37% 0.13% 0.08%

• 0.04%
• 0.10%

0.00% 0.10% 0.20% 0.30% 0.40%

• $3

$0 $3 $6 $9 $12 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

Provision Expense and Net Charge-offs* Ratio

Provision expense (LH axis) Annualized NCOs (net recoveries) / Avg. loans HFI* (RH axis)

$176.7 $130.8 $129.6 $144.8 $133.0 0.54% 0.39% 0.37% 0.41% 0.37% 0.00% 0.20% 0.40% 0.60% $100 $120 $140 $160 $180 $200 2Q16 3Q16 4Q16 1Q17 2Q17 $ in millions

Nonperforming Assets*

Nonperforming assets (LH axis) NPAs / Total assets (RH axis)

$24,236 $24,732 $25,503 $26,461 $27,211 1.10% 1.03% 1.02% 0.99% 1.02% 0.00% 1.00% 2.00% 3.00% 4.00% $20,000 $22,000 $24,000 $26,000 $28,000 2Q16 3Q16 4Q16 1Q17 2Q17 $ in milions

Allowance for Loan Losses

Gross loans HFI* (LH axis) ALLL / Gross loans HFI* (RH axis)

SLIDE 23

$20.27 $21.93 7.0% 8.5% 10.5% 4.0% 8.52% 10.9% 10.9% 12.4% 8.7% 8.95% 11.3% 11.3% 12.8% 9.3%

0.02 0.04 0.06 0.08 0.1 0.12 0.14 $5.00 $10.00 $15.00 $20.00 $25.00

Tangible equity per share Tangible equity to tangible assets ratio CET1 risk-based capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio Tier 1 leverage capital ratio

EWBC's Solid Capital Position

Basel III Fully Phased-in Minimum Regulatory Requirement EWBC 12.31.16 EWBC 06.30.17

23

2Q17 Capital Ratios

• Regulatory capital ratios increased by 21 to 27 bps in 2Q17 from 1Q17, and 39 to 58 bps year-to-date.
• Current capital levels are sufficient to support continued organic growth.

SLIDE 24

Providing a Healthy Dividend to Stockholders

24

400% or $0.64 per share increase in dividends since 2011

*Annualized based on dividend rate for the first three quarters of 2017.

EWBC has consistently paid an annual dividend on the common stock since going public in 1999

SLIDE 25

Net Interest Income Volatility as of 6/30/17 Given a 12-Month Demand Deposit Migration of: $1.0 billion $2.0 billion $3.0 billion Change in Interest Rates : % change $ in mm in EPS % change $ in mm in EPS % change $ in mm in EPS +200 bps 17.7% $199.0 + $ 1.02 15.3% $172.0 + $ 0.88 12.8% $143.9 + $ 0.74 +100 bps 9.7% $109.1 + $ 0.56 8.1% $91.1 + $ 0.47 6.5% $73.1 + $ 0.37 Net Interest Income Volatility: 30-Jun-2017 31-Dec-2016 Change in Interest Rates : % change $ in mm in EPS % change $ in mm in EPS + 200 bps 20.1% $226.0 + $ 1.16 22.4% $231.3 + $ 1.20 + 100 bps 11.2% $125.9 + $ 0.65 12.0% $123.9 + $ 0.64

• 100 bps
• 9.5%

($106.8)

• $ (0.55)
• 6.8%

($70.2)

• $ (0.36)
• 200 bps
• 11.7%

($131.6)

• $ (0.67)
• 7.5%

($77.4)

• $ (0.40)

Interest Rate Sensitivity

25

EWBC’s deposit mix has been stable: CDs ranging from 19% to 20%, and DDAs ranging from 33% to 35% over the past 5 quarters.

• Brokered deposits are 5% of total deposits, and institutional deposits are 8% of total, trending down from the year-ago

quarter.

• Due to the growth in core deposits, a surge deposit study was conducted to identify the amount of volatile deposits and

to estimate the likelihood of run-off in various interest rate environments.

• Betas: Retail Money Market – 62%; Commercial MMA – 69%; NOW – 26%; and Savings – 14%.

EWBC’s Net Interest Income Sensitivity to Selected Interest Rate Scenarios (as of June 30, 2017)

Note: NII sensitivity translated into $ and EPS using annualized YTD17 NII and FY 2016 NII, and the effective tax rate in each period.

SLIDE 26

Loan Portfolio: Underlying Interest Rate Detail

26

EWBC’s loan portfolio is predominantly linked to Prime Rate and short-term LIBOR, a profile that has been consistent

• ver time.
• Nearly 80% of EWBC’s loan

portfolio is variable rate (this includes hybrid loans in variable period), and <10% is fixed rate.

• Less than $850mm of variable rate

and hybrid loans, or 3.1% of total loans, have an index rate below

• floors. Approximately 30% of these

would cross above floor rates with the next 25bps move in interest rates, and another 25% would cross with a second 25bps move. The weighted average distance below floors is 77bps.

• Weighted avg. next

repricing/maturity date of the total loan portfolio is <1.25 years. The weighted avg. date of repricing for loans below floors is 6 months. EWBC’s Loan Portfolio Breakdown: Fixed, Hybrid, & Variable Rate Loans (as of June 30, 2017)

% of % of $ in mm. total loans $ in mm. category True Fixed rate loans 2,335.2 8.6% Hybrid: no floors 178.7 0.7% Hybrid: Interest rates above floors 2,847.8 10.5% Of which, linked to Prime 547.4 19.2% Of which, linked to 1M Libor 1.9 0.1% Of which, linked to Other Libor 534.7 18.8% Hybrid: Interest rates below floors 123.1 0.5% Hybrid: Interest rates at floors 46.3 0.2% Subtotal: Hybrid loans 3,195.9 11.7% Variable: no floors 14,764.8 54.2% Of which, linked to Prime 5,571 38% Of which, linked to 1M Libor 4,947 34% Of which, linked to Other Libor 2,037 14% Variable: Interest rate above floors 6,120.1 22.5% Of which, linked to Prime 3,978 65% Of which, linked to 1M Libor 1,160 19% Of which, linked to Other Libor 548 9% Variable: Interest rate at floors 29.0 0.1% Variable: Interest rate below floors 707.6 2.6% Of which, linked to Prime 412 58% Of which, linked to 1M Libor 110 16% Of which, linked to Other Libor 100 14% Subtotal: Variable rate loans 21,621.6 79.4% Other (NPLs, premiums, discounts) 69.6 0.3% Total gross loans 27,222.3 100.0%

Note: Hybrid loans shows those still in fixed rate period. Hybrid loans already subject to variable rate are shown in Variable loans. Note: Loans (HFI & HFS) net of deferred fees, premiums, or discounts, and gross of ALLL.

SLIDE 27

Key Focus Areas

27

Expand

MARKET OPPORTUNITY

LONG-TERM SHAREHOLDER VALUE

Grow

CORE DEPOSITS

Maintain good

ASSET QUALITY

Maintain solid

NII* & NIM*

Enhance

RISK MANAGEMENT

Build

FEE-BASED

businesses Focus on

BRIDGE BANKING

*NII = Net Interest Income. NIM = Net Interest Margin

Control

EXPENSES

Deliver

HIGH PROFITABILITY

SLIDE 28

APPENDIX

SLIDE 29

Appendix: GAAP to Non-GAAP Reconciliation

29

As previously disclosed on the March 30, 2017 Form 8-K, the Company consummated a sale and leaseback transaction on a commercial property and recognized a pre-tax gain on sale of $71.7 million during the first quarter of 2017. The table below shows the computation of the diluted earnings per common share excluding the after-tax effect of the gain on sale of the commercial property, return on average assets excluding the after-tax effect of the gain on sale of the commercial property and return on average equity excluding the after-tax effect of the gain on sale of the commercial property. Management believes that eliminating the effects of the gain on sale of the commercial property makes it easier to analyze the results by presenting them on a more comparable basis. (1) Applied statutory tax rate of 42.05%. (2) Annualized. Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Net income (a) $ 118,330

$

169,736

$

103,284 Less: Gain on sale of the commercial property, net of tax (1) (b) — (41,526 ) — Adjusted net income (c) $ 118,330

$

128,210

$

103,284 Diluted weighted average number of shares outstanding (d) 145,740 145,732 145,078 Diluted EPS (a)/(d) $ 0.81

$

1.16

$

0.71 Diluted EPS impact of gain on sale of the commercial property, net of tax (b)/(d) — (0.28 ) — Adjusted diluted EPS

$

0.81

$

0.88

$

0.71 Average total assets (e) $ 34,994,935

$

34,928,031

$

32,591,398 Average stockholders’ equity (f) $ 3,637,695

$

3,493,396

$

3,267,936 Return on average assets (2) (a)/(e) 1.36 % 1.97 % 1.27 % Adjusted return on average assets (2) (c)/(e) 1.36 % 1.49 % 1.27 % Return on average equity (2) (a)/(f) 13.05 % 19.71 % 12.71 % Adjusted return on average equity (2) (c)/(f) 13.05 % 14.88 % 12.71 %

SLIDE 30

30

Adjusted pre-tax, pre-provision profitability ratio represents the aggregate of net interest income and adjusted noninterest income less adjusted noninterest expense, divided by average total assets. Adjusted noninterest income excludes the gain on sale of the commercial property (where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments and the amortization of core deposit intangibles. The ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.

Appendix: GAAP to Non-GAAP Reconciliation (cont’d)

(1) Annualized. Adjusted efficiency ratio represents adjusted noninterest expense divided by the aggregate of net interest income and adjusted noninterest income. The Company believes that presenting the adjusted efficiency ratio shows the trend in recurring overhead-related noninterest expense relative to recurring net revenues. This provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods. Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Net interest income before provision for credit losses (a) $ 290,091

$

272,122

$

253,584 Total noninterest income 47,400 116,023 44,264 Less: Gain on sale of the commercial property — (71,654 ) — Adjusted noninterest income (b) $ 47,400

$

44,369

$

44,264 Net interest income and adjusted noninterest income

(a)+(b) = (c) $

337,491

$

316,491

$

297,848 Total noninterest expense

$

169,121

$

153,073

$

148,879 Less: Amortization of tax credit and other investments (27,872 ) (14,360 ) (14,006 ) Amortization of core deposit intangibles (1,762 ) (1,817 ) (2,050 ) Adjusted noninterest expense (d) $ 139,487

$

136,896

$

132,823 Adjusted pre-tax, pre-provision income (c)-(d) = (e) $ 198,004

$

179,595

$

165,025 Average total assets (f) $ 34,994,935

$

34,928,031

$

32,591,398 Adjusted pre-tax, pre-provision profitability ratio (1) (e)/(f) 2.27 % 2.09 % 2.04 % Adjusted noninterest expense (1)/average assets (d)/(f) 1.60 % 1.59 % 1.64 % Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Adjusted noninterest expense (m) $ 139,487

$

136,896

$

132,823 Net interest income and adjusted noninterest income (n) $ 337,491

$

316,491

$

297,848 Adjusted efficiency ratio (m)/(n) 41.33 % 43.25 % 44.59 %

SLIDE 31

31

The Company believes that presenting the adjusted average loan yield and adjusted net interest margin that exclude the ASC 310-30 discount accretion impact provides clarity to financial statement users regarding the change in loan contractual yields and allows comparability to prior periods.

Appendix: GAAP to Non-GAAP Reconciliation (cont’d)

(1) Annualized. Three Months Ended Six Months Ended Yield on Average Loans June 30, 2017 March 31, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Interest income on loans (a) $ 293,039

$

272,061

$

254,331

$

565,100

$

507,873 Less: ASC 310-30 discount accretion income (6,261 ) (3,233 ) (13,312 ) (9,494 ) (26,659 ) Adjusted interest income on loans (b) $ 286,778

$

268,828

$

241,019

$

555,606

$

481,214 Average loans (c) $ 26,698,787

$

26,087,178

$

23,888,867

$

26,403,545

$

23,854,070 Add: ASC 310-30 discount 45,398 48,566 65,957 46,973 71,347 Adjusted average loans (d) $ 26,744,185

$

26,135,744

$

23,954,824

$

26,450,518

$

23,925,417 Average loan yield (1) (a)/(c) 4.40 % 4.23 % 4.28 % 4.32 % 4.28 % Adjusted average loan yield (1)

(b)/(d)

4.30 % 4.17 % 4.05 % 4.24 % 4.04 % Net Interest Margin Net interest income (e) $ 290,091

$

272,122

$

253,584

$

562,213

$

505,788 Less: ASC 310-30 discount accretion income (6,261 ) (3,233 ) (13,312 ) (9,494 ) (26,659 ) Adjusted net interest income (f) $ 283,830

$

268,889

$

240,272

$

552,719

$

479,129 Average interest-earning assets (g) $ 33,295,012

$

33,095,396

$

30,783,445

$

33,204,629

$

30,690,954 Add: ASC 310-30 discount 45,398 48,566 65,957 46,973 71,347 Adjusted average interest-earning assets (h) $ 33,340,410

$

33,143,962

$

30,849,402

$

33,251,602

$

30,762,301 Net interest margin (1)

(e)/(g)

3.49 % 3.33 % 3.31 % 3.41 % 3.31 % Adjusted net interest margin (1) (f)/(h) 3.41 % 3.29 % 3.13 % 3.35 % 3.13 %

SLIDE 32

32

The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratios are non-GAAP disclosures. Tangible equity represents stockholders’ equity which has been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios are more prevalent in the banking industry, and used by banking regulators and analysts, the Company has included them for discussion.

Appendix: GAAP to Non-GAAP Reconciliation (cont’d)

Adjusted tangible return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax effect of the amortization of core deposit intangibles, the after-tax effect of the amortization of mortgage servicing assets and the after-tax effect of the gain on sale of the commercial property. (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 42.05%. (3) Annualized. June 30, 2017 March 31, 2017 June 30, 2016 Stockholders’ equity $ 3,670,261 $ 3,565,954 $ 3,296,910 Less: Goodwill (469,433 ) (469,433 ) (469,433 ) Other intangible assets (1) (32,012 ) (33,843 ) (37,696 ) Tangible equity (a) $ 3,168,816

$

3,062,678

$

2,789,781 Total assets

$

35,917,617

$

35,342,126

$

32,952,212 Less: Goodwill (469,433 ) (469,433 ) (469,433 ) Other intangible assets (1) (32,012 ) (33,843 ) (37,696 ) Tangible assets (b) $ 35,416,172

$

34,838,850

$

32,445,083 Tangible equity to tangible assets ratio (a)/(b) 8.95 % 8.79 % 8.60 % Three Months Ended June 30, 2017 March 31, 2017 June 30, 2016 Net Income $ 118,330 $ 169,736 $ 103,284 Add: Amortization of core deposit intangibles, net of tax (2) 1,021 1,053 1,188 Amortization of mortgage servicing assets, net of tax (2) 241 266 377 Tangible net income (c) $ 119,592

$

171,055

$

104,849 Less: Gain on sale of the commercial property, net of tax(2) — (41,526 ) — Adjusted tangible net income (d) $ 119,592

$

129,529

$

104,849 Average stockholders’ equity

$

3,637,695

$

3,493,396

$

3,267,936 Less: Average goodwill (469,433 ) (469,433 ) (469,433 ) Average other intangible assets (1) (33,101 ) (34,987 ) (38,867 ) Average tangible equity (e) $ 3,135,161

$

2,988,976

$

2,759,636 Tangible return on average tangible equity (3) (c)/(e) 15.30 % 23.21 % 15.28 % Adjusted tangible return on average tangible equity (3) (d)/(e) 15.30 % 17.57 % 15.28 %