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

First Quarter 2017

INVESTOR PRESENTATION

May 2017

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.

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 $35 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

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.

2016

Net income: $432 million and assets of $35 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

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.

Rank Total Assets (as of 03.31.17) Ticker $ Billion Rank Market Cap (as of 05.01.17) Ticker $ Billion 1 JPMorgan Chase & Co. JPM 2,546.3 1 JPMorgan Chase & Co. JPM 309.3 2 Bank of America Corporation BAC 2,247.7 2 Wells Fargo & Company WFC 272.1 3 Wells Fargo & Company WFC 1,951.6 3 Bank of America Corporation BAC 235.5 4 Citigroup Inc. C 1,821.6 4 Citigroup Inc. C 163.7 5 U.S. Bancorp USB 449.5 5 U.S. Bancorp USB 87.5 6 PNC Financial Services Group, Inc. PNC 370.9 6 PNC Financial Services Group, Inc. PNC 58.8 7 Capital One Financial Corporation COF 348.5 7 Bank of New York Mellon Corporation BK 49.1 8 Bank of New York Mellon Corporation BK 337.5 8 Capital One Financial Corporation COF 39.4 9 State Street Corporation STT 236.8 9 BB&T Corporation BBT 35.4 10 BB&T Corporation BBT 220.5 10 State Street Corporation STT 31.6 11 SunTrust Banks, Inc. STI 205.6 11 SunTrust Banks, Inc. STI 28.0 12 Citizens Financial Group, Inc. CFG 150.3 12 M&T Bank Corporation MTB 24.1 13 Fifth Third Bancorp FITB 140.2 13 Northern Trust Corporation NTRS 20.7 14 KeyCorp KEY 134.5 14 KeyCorp KEY 20.4 15 Regions Financial Corporation RF 124.5 15 Citizens Financial Group, Inc. CFG 18.9 16 M&T Bank Corporation MTB 123.2 16 Fifth Third Bancorp FITB 18.6 17 Northern Trust Corporation NTRS 121.5 17 Regions Financial Corporation RF 16.7 18 Huntington Bancshares Incorporated HBAN 100.0 18 First Republic Bank FRC 14.7 19 First Republic Bank FRC 76.5 19 Huntington Bancshares Incorporated HBAN 14.2 20 Comerica Incorporated CMA 73.0 20 Comerica Incorporated CMA 12.6 21 Zions Bancorporation ZION 65.5 21 SVB Financial Group SIVB 9.5 22 SVB Financial Group SIVB 46.4 22 Zions Bancorporation ZION 8.2 23 People's United Financial, Inc. PBCT 40.3 23 East West Bancorp, Inc. EWBC 8.0 24 Signature Bank SBNY 40.3 24 Signature Bank SBNY 7.7 25 Popular, Inc. BPOP 40.3 25 PacWest Bancorp PACW 6.1 26 East West Bancorp, Inc. EWBC 35.3 26 Cullen/Frost Bankers, Inc. CFR 6.1 27 First Citizens BancShares, Inc. FCNCA 34.0 27 People's United Financial, Inc. PBCT 6.0 28 BOK Financial Corporation BOKF 32.6 28 Commerce Bancshares, Inc. CBSH 5.6 29 Synovus Financial Corp. SNV 30.7 29 BOK Financial Corporation BOKF 5.5 30 Cullen/Frost Bankers, Inc. CFR 30.5 30 Synovus Financial Corp. SNV 5.2

Bank Rankings by Total Assets and Market Cap

6

Source: S&P Global Market Intelligence.

Strong Balance Sheet Growth

7

Total Assets Stockholders' Equity Total Loans

* CAGR from December 31, 2007 – March 31, 2017.

Total Deposits

($ in billions)

$77 $165 $243 $278 $293 $346 $385 $432

$128 $42

2009 2010 2011 2012 2013 2014 2015 2016 1Q17*

Net Earnings Gain on sale of building

$0.33 $0.83 $1.58 $1.87 $2.09 $2.41 $2.66 $2.97

$0.88 $0.28

2009 2010 2011 2012 2013 2014 2015 2016 1Q17*

Diluted EPS Gain on sale of building

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% $170 $1.16

* 1Q17 comprised of operating earnings and gain on sale of commercial property. See reconciliation of GAAP to non-GAAP financials in the Company’s 1Q17 earnings release.

+19% y-o-y (oper.*) +19% y-o-y (oper.*)

5.65% 7.96% 8.46% 8.60% 8.71% 8.29% 8.20% 8.52% 8.79%

2009 2010 2011 2012 2013 2014 2015 2016 1Q17

Tangible Equity to Tangible Assets Ratio

$7.75 $10.87 $12.22 $13.58 $14.39 $16.30 $18.15 $20.27 $21.20 2009 2010 2011 2012 2013 2014 2015 2016 1Q17

Tangible Equity per Share

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

+5% +27 bps

2.18% 2.04% 2.09% 1.89% 2015 Full- Year 2016 Full- Year 2017 First Quarter (adjusted*) 2016 Industry Average

Adjusted* Pre-tax, Pre-provision Profitability Ratio

12.7% 13.1% 14.9% 8.9% 2015 Full- Year 2016 Full- Year 2017 First Quarter (adjusted*) 2016 Industry Average

Return on Average Equity

1.27% 1.30% 1.49% 1.06% 2015 Full- Year 2016 Full- Year 2017 First Quarter (adjusted*) 2016 Industry Average

Return on Average Assets

Outperforming Peers on Key Profitability Metrics

10

Note: Industry average based on FDIC’s 4Q16 Quarterly Banking Profile for FDIC insured banks with asset size $10bn to $250bn. Source: FDIC and S&P Global Market Intelligence. * 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.

10% 2% 50% 1%

41.8% 44.2% 43.3% 56.0% 2015 Full- Year 2016 Full- Year 2017 First Quarter (adjusted*) 2016 Industry Average

Adjusted* Efficiency Ratio

Highlights of First Quarter 2017 Results

Solid operating results

• Net income of $170mm and diluted EPS of $1.16 up by 53% Q-o-Q.
• Adjusted net income1,2 and adj. diluted EPS1,2 grew 16% Q-o-Q.
• NII increase driven by strong loan growth and impact of recent interest rate

rise, offset by decreased accretion income. 1Q17 NII of $272mm down <$1mm from $273mm in 4Q16. 1Q17 NIM of 3.33% up +2 bps Q-o-Q.

• Excluding discount accretion, adj. NII2 of $269mm was up 12% LQA

annualized and adj. NIM2 was up 12 bps.

• Disciplined expense management: industry-leading adj. efficiency 2 ratio of

43.3%, up by 9 bps linked quarter.

• Controlled credit costs: annualized NCO ratio of 8 bps in 1Q17.

Loans grew 15% LQA

• Broad-based growth: increases across all commercial and retail categories.

Deposits grew 9% LQA

• Non-IB demand deposits reached a record $10.7bn, or 35% of deposit mix.

Sale & leaseback of commercial property in 1Q

• Strengthened capital ratios: after-tax gain of $41.5mm or $0.28/share.
• Sale price: $120.6mm. Pre-tax gain: $85.4mm, of which $71.7mm recognized

in 1Q17 and $13.7mm deferred over the term of the lease.

11

Net income $169.7 million

• Adj. net

income1,2 $128.2 million Diluted EPS $1.16

• Adj. diluted

EPS1,2 $0.88 Tangible equity2/share $21.20 Record loans $26.5 billion Record deposits $30.5 billion

1 Adjusted net income and adjusted diluted EPS exclude the impact of the commercial property sale in 1Q17. 2 See reconciliation of GAAP to non-GAAP financials in the Company’s 1Q17 earnings release.

Updated Management Outlook: Full Year 2017

12

Earnings drivers Revised full year 2017 outlook (after 1Q17) Change from prior

• utlook

(at year-end) 2016 FY actual 1Q17 actual

End of Period Loans

• Increase at a percentage rate in the low

double digits.

• Loan growth supported by deposit growth.

Raise from high single digit growth. $25.5 billion, +8% Y-o-Y $26.5 billion, +15% LQA NIM (excl. impact of ASC 310-30 discount accretion)

• 3.35% to 3.45%.
• Favorable asset sensitivity position to

support NIM expansion. Increase from 3.20%- 3.40%. 3.15% 3.29% 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 $137 million,

• 5% LQA

Provision for Credit Losses

• In the range of $40 mm to $50 mm.

Unchanged. $27 million $7 million Tax Items (renewable energy & historical tax credits)

• Tax credit investments of $95mm.
• Associated tax credit amortization of $75mm.
• Effective tax rate ranging from 26% to 29%.

Tax credit investments

• f $90mm and tax credit

amortization of $80mm. Effective tax rate: 24.6% Effective tax rate: 25.6% Interest Rates

• Outlook incorporates the current forward rate

curve.

• Two additional Fed Funds rate increases in

2017: in June and Nov. Three Fed Funds rate increases in June, Sep., and Dec. Fed Funds increased +25bps in Dec. 2016. Fed Funds increased +25bps in Mar. 2017.

$107.5 $103.3 $110.1 $110.7 $128.2 $41.5

1.33% 1.27% 1.33% 1.27% 1.49%

1.0% 1.2% 1.4% 1.6% 1.8% 2.0% $0 $40 $80 $120 $160 $200 1Q16 2Q16 3Q16 4Q16 1Q17 *

Net Income & ROA

1Q17: Gain on sale of building (LH axis) Net income (LH axis) (oper. in 1Q17) Return on Avg. Assets (RH axis) (oper. in 1Q17)

$107.5 $103.3 $110.1 $110.7 $128.2 $41.5 13.6% 12.7% 13.1% 12.9% 14.9% 10% 12% 14% 16% 18% 20% $0 $40 $80 $120 $160 $200 1Q16 2Q16 3Q16 4Q16 1Q17 *

Net Income & ROE

1Q17: Gain on sale of building (LH axis) Net income (LH axis) (oper. in 1Q17) Return on Avg. Equity (RH axis) (oper. in 1Q17)

$0.74 $0.71 $0.76 $0.76 $0.88 $0.28

0% 5% 10% 15% 20% 25% 30% 35% 40%

$0.40 $0.60 $0.80 $1.00 $1.20 1Q16 2Q16 3Q16 4Q16 1Q17 *

Diluted EPS & EPS Growth

1Q17: Gain on building sale (LH axis) Diluted EPS (LH axis) (oper. in 1Q17) Diluted EPS growth (RH axis) (oper. in 1Q17)

1Q17 Earnings Growth and Profitability

13

In $ $ in millions * 1Q17 financials adjusted for the impact of the commercial property sale. See reconciliation of GAAP to non-GAAP financial measures in the Company’s 1Q17 earnings release. 0% $ in millions

• 1Q17 GAAP net income of $170mm, EPS of $1.16, ROA
• f 1.97% and ROE of 19.7%.
• Excluding the commercial property sale gain in 1Q17,

adjusted EPS of $0.88 grew by 16% Q-o-Q.

• Consistently attractive profitability:
• 5-quarter range of ROA*: 1.27% to 1.49%.
• 5-quarter range of ROE*: 12.7% to 14.9%.
• Return on average tangible equity of 23.2% in 1Q17.
• Excluding the property sale gain, 17.6% in 1Q17*,

compared to 15.3% in 4Q16 and 16.5% in 1Q16.

$1.16 $169.7 $169.7

8.8 9.1 9.3 9.6 9.9 8.4 8.5 8.5 8.7 9.0 1.3 1.3 1.4 1.6 1.7 3.1 3.2 3.4 3.5 3.7 2.1 2.1 2.1 2.1 2.1

0% 20% 40% 60% $0 $10 $20 $30 1Q16 2Q16 3Q16 4Q16 1Q17 C&I CRE MFR SFR Consumer LQA growth rate

1Q17 Record Loans of $26.5 billion

14 Q-o-Q Difference

• Total loans increased $964mm or 4% (+15% LQA).
• Broad-based growth across commercial and retail

business segments.

• Growth by loan category: CRE (+3%), C&I (+3%),

SFR (+5%), and MFR (+9%).

• Strong performance from specialty verticals in

Energy, Entertainment, and Private Equity Funds.

• Good growth in traditional C&I with expanding line

utilizations in 1Q: typically, a seasonally weaker quarter.

• Strong 1Q growth rate supports increased full year 2017
• utlook.
• Loan portfolio mix balanced between commercial,

commercial real estate, and consumer loans (which includes SFR & MFR).

• Regulatory CRE to total capital: 265% as of 03.31.17.

* Totals may not add up due to rounding. CRE = CRE, construction and land. Consumer = predominantly HELOCs.

Loan Portfolio Mix

$ in billions

EOP Total Loans

$26.5* $25.5* $24.8* $24.3* $23.8*

37% 38% 38% 38% 37% 35% 35% 34% 34% 34% 6% 6% 6% 6% 7% 13% 13% 14% 14% 14% 9% 8% 8% 8% 8%

1Q16 2Q16 3Q16 4Q16 1Q17 C&I CRE MFR SFR Consumer

Specialized Industry Verticals: Cross-Border Growth

15

Total Loans $26.5 bn C&I loans $9.9 bn or 37% Specialized Industry $3.7 bn or 37%

Includes Includes

Portfolio distribution data as of March 31, 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, or 32% YoY, from $2.8 bn as of 03.31.16. Growth in these niches is driven by Bridge Banking, EWBC’s strategy of facilitating cross-border commercial opportunities.

Less than 50%: 36% 51% to 55%: 15% 56% to 60%: 17% 61% to 65%: 18% 66% to 70%: 7% 71% to 75%: 3% Over 75%: 4%

• CRE concentration under FFIEC guidelines as of 03.31.17 was 265%, compared to 260% as of 12.31.16,

and down from 279% as of 03.31.16.

• Room in 2017 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 $9.0 billion includes construction & land loans, which were $685 million as of 03.31.17. 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 03.31.17) CRE* LTV Distribution (as of 03.31.17) $9.0 billion

CRE loan portfolio

$2.2 million

• Avg. outstanding

CRE loan size

52%

• Avg. LTV1

Retail, 34% Industrial, 17% Offices, 16% Hotel/Motel, 14% Other, 11% Construction & land, 8%

1Q17 Record Deposits of $30.5 billion

17 Q-o-Q Difference

• Total deposits increased $652mm or 2% (+9% LQA).
• Back-end loaded deposit growth: avg. deposits

modestly decreased by 0.4%.

• DDA growth: +5% EOP / -0.5% avg.
• IB checking & savings growth: +2% EOP / -1% avg.
• MMDA growth: -2% EOP / -3% avg.
• Time deposit growth: +4% EOP / +3% avg.
• DDAs grew to a record $10.7 billion as of 03.31.17.
• Stable deposit mix throughout year, with gradually

increasing share of demand deposits.

• 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 21%.

• EOP loan-to-deposit ratio of 86.7%.
• Avg. loan-to-deposit ratio of 87.8%. Decreased by

quarter-end with timing of deposit growth.

• Room to support organic loan growth, and room to

maintain discipline in deposit pricing. $30.5* $29.9* $28.6* $28.2* $28.6*

33% 34% 33% 34% 35% 27% 26% 27% 27% 26% 19% 20% 20% 20% 20% 21% 20% 20% 19% 19%

1Q16 2Q16 3Q16 4Q16 1Q17 DDA MMDA IB checking & Savings Time

9.5 9.5 9.5 10.2 10.7 7.6 7.4 7.7 8.2 8.0 5.4 5.6 5.8 5.9 6.1 6.1 5.7 5.6 5.6 5.8

0.0% 20.0% 40.0% 60.0% $0 $10 $20 $30 $40 1Q16 2Q16 3Q16 4Q16 1Q17 DDA MMDA IB checking & Savings Time LQA growth rate $ in billions

EOP Deposits Deposit Portfolio Mix

* Totals may not add up due to rounding.

1Q17 Summary Income Statement

18 % Change vs.

($ in millions, except per share data)

1Q17 4Q16 1Q16

1Q17 Comments

Adjusted net interest income (excl. accretion) $ 268.9 3.0% 12.6%

• Loan growth & higher interest rates.

ASC 310-30 discount accretion income $ 3.2 (72.1) (75.8)

• Declined, as anticipated.

Net interest income $ 272.1 (0.2) 7.9 Fees & operating income $ 38.8 (18.4) 12.3

• Decrease from MTM adjustments.

Customer-related fee income grew Q-o-Q. Net gains on sales of fixed assets $ 72.0 NM NM

• Sale of commercial property in SF.

Net gains on sales of loans & securities $ 5.2 415.6 (9.4) Total Noninterest income $ 116.0 137.8 186.4 Adjusted noninterest expense $ 136.9 (1.3) 5.0

• Q-o-Q reduction in consulting expenses.

Tax credit and other investment amortization $ 14.4 (36.6) 1.4

• Expecting $20mm/qtr. rest of year.

Amortization of core deposit intangibles $ 1.8 (4.8) (13.6) Total Noninterest expense $ 153.1 2.1 4.4 Provision for credit losses $ 7.1 (32.4) 390.8

• Low level of charge-offs and limited

downward loan risk rating migration. Income tax expense $ 58.3 15.6 56.8

• New stock-based comp. accounting: lower

tax expense by $4.4mm or $0.03/sh. Net income $169.7 53.3% 57.9%

• Effective tax rate of 25.6%.

Diluted EPS $ 1.16 52.6% 56.8% Adjusted diluted EPS * $ 0.88 15.5% 18.5%

• Excludes commercial property sale.

* Adjusted EPS exclude the impact from the commercial property sale. See reconciliation of GAAP to non-GAAP financial measures on slides 14-17 and in the Company’s 1Q17 Earnings Release.

• 1Q17 NIM of 3.33% expanded by 2 bps Q-o-Q.

1Q17 loans yield of 4.23% declined by 10 bps Q-o-Q because of decreased accretion income.

• Excluding the impact of accretion income, adjusted NIM
• f 3.29% expanded by 12 bps Q-o-Q.
• Benefitted from a rising interest rate environment.
• Impact from change in adj. loan yields: +3 bps Q-o-Q.
• Impact from change in earning asset yields: +4 bps Q-o-Q.
• Impact from change in deposit costs: -1 bp Q-o-Q from

MMDA, offset by +1 bp Q-o-Q from CDs.

• Earning assets mix shift (more loans): +7 bps Q-o-Q.
• Funding mix shift (more borrowings): -2 bps Q-o-Q.

238.9 240.3 247.0 261.1 268.9 13.3 13.3 7.2 11.6 3.2 $220 $240 $260 $280 1Q16 2Q16 3Q16 4Q16 1Q17

• Adj. net interest income *

Accretion income

1Q17 Net Interest Income & Net Interest Margin

19

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

* See reconciliation of GAAP to non-GAAP financials in the Company’s 1Q17 earnings release. $252.2 $253.6 $254.1 $272.7 $272.1

• 1Q17 total NII of $272mm decreased by <$1mm Q-o-Q

due to declining ASC 310-30 discount accretion income.

• Anticipating quarterly accretion run-rate of $3mm going

forward.

• Remaining ASC 310-30 accretion discount of $47mm as
• f 03.31.17, of which approx. $32mm expected to

accrete as income.

• Adjusted NII, excluding accretion income, of $269mm

increased by 12% LQA.

• Driven by loan growth & higher loan yields in 1Q17.

$ in millions

Net Interest Income

10.2 10.4 10.4 10.2 10.3 3.1 2.8 4.0 3.4 4.5 3.6 4.3 6.1 5.4 5.0 9.6 10.9 10.9 14.4 11.1 2.5 1.4 5.8 7.0 2.5 5.6 6.5 7.6 7.2 5.4 $0 $10 $20 $30 $40 $50 1Q16 2Q16 3Q16 4Q16 1Q17 Branch fees Wealth management fees Ancillary loan fees LC fees & FX income Derivative fees & other income Other fees & operating income

1Q17 Fees & Other Operating Income

20

Total Fees and Other Operating Income

Q-o-Q Difference

• Excluding net gains on sale of loans, securities, and

fixed assets, fees and other operating income of $39mm decreased by $8.7mm or 18%.

• Most customer-related fee income categories increased;

decrease in total fee income reflects mark-to-market and valuation changes.

• Branch fees increased by $0.1mm.
• Letters of credit fees increased by $0.7mm to

$8.4mm in 1Q17.

• Customer-related FX income increased in 1Q17, but

total FX income declined largely due to valuation changes associated with currency hedges.

• Ancillary loan fees declined by $0.4mm.
• Wealth management fees increased by $1.2mm.
• Fees from assisting customers to hedge interest

rates increased by $1.4mm to $3.6mm in 1Q17, but total derivative fees and other income of $2.5mm declined by $4.5mm primarily due to a mark-to- market valuation adjustments related to changes in interest rates. $34.6 $36.3 $44.9 $47.5 $38.8 $ in millions

1Q17 Efficiency and PTPP Profitability

21

Adj.* Operating Expense & Efficiency Ratio

$ in millions

1

Adj.* PTPP Income & PTPP Profitability Ratio

$ in millions * See reconciliation of GAAP to non-GAAP financials in the Company’s 1Q17 Earnings Release.

• 1Q17 total noninterest expense: $153mm.
• Excluding tax credit amortization and core deposit

intangible amortization, 1Q17 noninterest expense of $137mm decreased by 1% Q-o-Q.

• Declining consulting and other expenses offset

seasonal increases in compensation expense.

• Industry-leading, adj.* efficiency ratio a key bank strength.
• 43.3% in 1Q17, up by 9 bps Q-o-Q.
• 5-quarter adj. efficiency ratio range of 44.8% to 43.2%.
• Consistent adjusted* pre-tax, pre-provision profitability

ratio.

• 5-quarter PTPP profitability range of 2.01% to 2.10%.
• 1Q17 adj.* PTPP profitability ratio of 2.09% essentially

stable Q-o-Q and increased by 8 bps Y-o-Y.

• NII growth driven by loan growth and higher interest

rates, fully offsetting decline from accretion income.

• Disciplined expense management and industry-

leading efficiency ratio.

• Customer fee income growth, excluding mark-to-

market adjustments.

$130.3 $132.8 $135.9 $138.7 $136.9 44.5% 44.6% 44.8% 43.2% 43.3%

20% 30% 40% 50%

$100 $120 $140 $160 1Q16 2Q16 3Q16 4Q16 1Q17

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

$162.4 $165.0 $167.6 $182.8 $179.6 2.01% 2.04% 2.03% 2.10% 2.09% 1.20% 1.40% 1.60% 1.80% 2.00% 2.20% $0 $50 $100 $150 $200 $250 1Q16 2Q16 3Q16 4Q16 1Q17 *

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

• Allowance coverage of loans HFI ticked down to 0.99% as
• f 03.31.17, reflecting limited downward migration of loans

into substandard risk categories.

• Annualized NCO ratio of 8 bps in 1Q17 near historically low

levels, down by 5 bps Q-o-Q and down 1 bp Y-o-Y.

• NPAs increased by $15mm linked quarter to $145mm or

0.41% of total assets at the end of 1Q17, up from 0.37% at the end of 4Q16 but down from 0.51% at the end of 1Q16.

• Two unrelated loans (a C&I and a CRE) drove the

increase in NPAs.

• Both loans fully collateralized at 03.31.17.

1Q17 Asset Quality Metrics

22

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

Provision Expense and Net Charge-offs* Ratio

$ in millions

Nonperforming Assets* Allowance for Loan Losses

$ in millions

23

1Q17 Capital Ratios

EWBC’s Solid Capital Position

• Capital ratios increased by 20 to 30 bps in 1Q17.
• Our core earnings and the sale of the commercial property during the quarter strengthened capital ratios across the

board.

• Current capital levels are sufficient to support continued organic growth.

7.0% 8.5% 10.5% 4.0% 8.52% 10.9% 10.9% 12.4% 8.7% 8.79% 11.1% 11.1% 12.6% 9.0% Tangible equity to tangible assets ratio CET1 capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio Tier 1 leverage capital ratio Basel III Fully Phase-in Minimum Regulatory Requirement EWBC 12.31.16 EWBC 03.31.17 $ 20.27 $ 21.20 Tangible equity per share

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 and second quarters of 2017.

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

Net Interest Income Volatility as of 12/31/16 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 19.7% $203.4 + $ 1.06 17.0% $175.5 + $ 0.91 14.2% $146.6 + $ 0.76 +100 bps 10.3% $106.4 + $ 0.55 8.5% $87.8 + $ 0.46 6.8% $70.2 + $ 0.36 Net Interest Income Volatility: 31-Dec-2016 31-Dec-2015 Change in Interest Rates : % change $ in mm in EPS % change $ in mm in EPS + 200 bps 22.4% $231.3 + $ 1.20 18.5% $175.8 + $ 0.81 + 100 bps 12.0% $123.9 + $ 0.64 9.6% $91.2 + $ 0.42

• 100 bps
• 6.8%

($70.2)

• $ (0.36)
• 4.0%

($38.0)

• $ (0.17)
• 200 bps
• 7.5%

($77.4)

• $ (0.40)
• 4.6%

($43.7)

• $ (0.20)

Interest Rate Sensitivity

25

The increase in EWBC’s interest rate sensitivity between 12/31/16 and 12/31/15 was primarily due to growth in core deposits, which now make up 81% of total deposits.

• Brokered deposits are 5% of total deposits, and institutional deposits are 10% of total, both essentially stable relative to

the past several quarters.

• 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 – 53%; Commercial MMA – 65%; NOW – 28%; and Savings – 15%.

EWBC’s Net Interest Income Sensitivity to Selected Interest Rate Scenarios (as of December 31, 2016)

Note: NII sensitivity translated into $ and EPS using annualized YTD16 NII and FY 2015 NII, and the effective tax rate in each period.

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.
• Over 80% of EWBC’s loan

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

• Less than $1.0bn of variable rate

and hybrid loans, or 3.5% of total loans, have an index rate below

• floors. Approximately 34% of these

would cross above floor rates with the next 25bps move in interest rates, and another 24% would cross with a second 25bps move. The weighted average distance below floors is 75bps.

• 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 5 months, stable linked quarter. EWBC’s Loan Portfolio Breakdown: Fixed, Hybrid, & Variable Rate Loans (as of March 31, 2017)

Note: Hybrid loans shows those still in fixed rate period. Hybrid loans already subject to variable rate are shown in Variable loans. Note: Loans gross of deferred fees, premiums, or discounts.

Gross Loans: Fixed, Hybrid, & Variable Rate Loans (as of 03.31.17) % of % of $ in mm. total loans $ in mm. category True Fixed rate loans 2,232.8 8.4% Hybrid: no floors 174.5 0.7% Hybrid: Interest rates above floors 2,431.4 9.2% Of which, linked to Prime 567.6 23.3% Of which, linked to 1M Libor 1.9 0.1% Of which, linked to Other Libor 486.8 20.0% Hybrid: Interest rates below floors 110.9 0.4% Hybrid: Interest rates at floors 41.8 0.2% Subtotal: Hybrid loans 2,758.6 10.4% Variable: no floors 14,243.5 53.7% Of which, linked to Prime 5,553 39% Of which, linked to 1M Libor 4,481 31% Of which, linked to Other Libor 1,894 13% Variable: Interest rate above floors 6,013.5 22.7% Of which, linked to Prime 3,750 62% Of which, linked to 1M Libor 1,248 21% Of which, linked to Other Libor 545 9% Variable: Interest rate at floors 318.9 1.2% Variable: Interest rate below floors 825.5 3.1% Of which, linked to Prime 386 47% Of which, linked to 1M Libor 210 25% Of which, linked to Other Libor 125 15% Subtotal: Variable rate loans 21,401.3 80.6% Other (NPLs, premiums, discounts) 154.1 0.6% Total gross loans 26,548.1 100.0%

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

Appendix: GAAP to Non-GAAP Reconciliation

28 Quarter Ended March 31, 2017

December 31, 2016

March 31, 2016 Net income (a) $ 169,736

$

110,734

$

107,516 Less: Gain on sale of the commercial property, net of tax (1) (b) (41,526 ) — — Adjusted net income (c) $ 128,210

$

110,734

$

107,516 Diluted weighted average number of shares outstanding (d) 145,732 145,428 144,803 Diluted EPS (a)/(d) $ 1.16

$

0.76

$

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

$

0.88

$

0.76

$

0.74 Average total assets (e) $ 34,928,031

$

34,679,137

$

32,486,723 Average stockholders’ equity (f) $ 3,493,396

$

3,423,405

$

3,181,368 Return on average assets (2) (a)/(e) 1.97 % 1.27 % 1.33 % Adjusted return on average assets (2) (c)/(e) 1.49 % 1.27 % 1.33 % Return on average equity (2) (a)/(f) 19.71 % 12.87 % 13.59 % Adjusted return on average equity (2) (c)/(f) 14.88 % 12.87 % 13.59 % (1) Applied statutory tax rate of 42.05%. (2) Annualized.

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 assets excluding the after-tax effect of the gain on sale of the commercial property and return on 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.

29

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 reversal of a legal accrual (where applicable), 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. Quarter Ended March 31, 2017

December 31, 2016

March 31, 2016 Net interest income before provision for credit losses (a) $ 272,122

$

272,702

$

252,204 Total noninterest income 116,023 48,800 40,513 Less: Gain on sale of the commercial property (71,654 ) — — Adjusted noninterest income (b) $ 44,369

$

48,800

$

40,513 Net interest income and adjusted noninterest income (a)+(b) = (c) $ 316,491

$

321,502

$

292,717 Total noninterest expense

$

153,073

$

149,904

$

146,606 Less: Legal accrual reversal — 13,417 — Amortization of tax credit and other investments (14,360 ) (22,667 ) (14,155 ) Amortization of core deposit intangibles (1,817 ) (1,909 ) (2,104 ) Adjusted noninterest expense (d) $ 136,896

$

138,745

$

130,347 Adjusted pre-tax, pre-provision income (c)-(d) = (e) $ 179,595

$

182,757

$

162,370 Average total assets (f) $ 34,928,031

$

34,679,137

$

32,486,723 Adjusted pre-tax, pre-provision profitability ratio (1) (e)/(f) 2.09 % 2.10 % 2.01 % Adjusted noninterest expense (1)/average assets (d)/(f) 1.59 % 1.59 % 1.61 % 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. Quarter Ended March 31, 2017

December 31, 2016

March 31, 2016 Adjusted noninterest expense (g) $ 136,896

$

138,745

$

130,347 Net interest income and adjusted noninterest income (h) $ 316,491

$

321,502

$

292,717 Adjusted efficiency ratio (g)/(h) 43.25 % 43.16 % 44.53 % (1) Annualized.

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

30

The Company believes that presenting the adjusted average loan yields and adjusted net interest margin that exclude the ASC 310-30 impacts provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods.

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

Quarter Ended Yield on Average Loans March 31, 2017 December 31, 2016 March 31, 2016 Interest income on loans (a) $ 272,061

$

272,188

$

253,542 Less: ASC 310-30 discount accretion income (3,233 ) (11,601 ) (13,347 ) Adjusted interest income on loans (b) $ 268,828

$

260,587

$

240,195 Average loans (c) $ 26,087,178

$

25,033,196

$

23,819,273 Add: ASC 310-30 discount 48,566 54,664 76,736 Adjusted average loans (d) $ 26,135,744

$

25,087,860

$

23,896,009 Average loan yields (1) (a)/(c) 4.23 % 4.33 % 4.28 % Adjusted average loan yields (1) (b)/(d) 4.17 % 4.13 % 4.04 % Net Interest Margin Net interest income (e) $ 272,122

$

272,702

$

252,204 Less: ASC 310-30 discount accretion income (3,233 ) (11,601 ) (13,347 ) Adjusted net interest income (f) $ 268,889

$

261,101

$

238,857 Average interest-earning assets (g) $ 33,095,396

$

32,736,669

$

30,598,462 Add: ASC 310-30 discount 48,566 54,664 76,736 Adjusted average interest-earning assets (h) $ 33,143,962

$

32,791,333

$

30,675,198 Net interest margin (1) (e)/(g) 3.33 % 3.31 % 3.32 % Adjusted net interest margin (1) (f)/(h) 3.29 % 3.17 % 3.13 % (1) Annualized.

31

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)

March 31, 2017 December 31, 2016 March 31, 2016 Stockholders’ equity $ 3,565,954 $ 3,427,741 $ 3,216,781 Less: Goodwill (469,433 ) (469,433 ) (469,433 ) Other intangible assets (1) (33,843 ) (35,670 ) (39,676 ) Tangible equity (a) $ 3,062,678

$

2,922,638

$

2,707,672 Total assets

$

35,342,126

$

34,788,840

$

33,109,169 Less: Goodwill (469,433 ) (469,433 ) (469,433 ) Other intangible assets (1) (33,843 ) (35,670 ) (39,676 ) Tangible assets (b) $ 34,838,850

$

34,283,737

$

32,600,060 Tangible equity to tangible assets ratio (a)/(b) 8.79 % 8.52 % 8.31 %

Adjusted 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.

Quarter Ended March 31, 2017 December 31, 2016 March 31, 2016 Net Income $ 169,736 $ 110,734 $ 107,516 Add: Amortization of core deposit intangibles, net of tax (2) 1,053 1,106 1,219 Amortization of mortgage servicing assets, net of tax (2) 266 106 763 Tangible net income (c) $ 171,055

$

111,946

$

109,498 Less: Gain on sale of the commercial property, net of tax(2) (41,526 ) — — Adjusted tangible net income (d) $ 129,529

$

111,946

$

109,498 Average stockholders’ equity

$

3,493,396

$

3,423,405

$

3,181,368 Less: Average goodwill (469,433 ) (469,433 ) (469,433 ) Average other intangible assets (1) (34,987 ) (36,354 ) (40,946 ) Average tangible equity (e) $ 2,988,976

$

2,917,618

$

2,670,989 Return on average tangible equity (3) (c)/(e) 23.21 % 15.26 % 16.49 % Adjusted return on average tangible equity (3) (d)/(e) 17.57 % 15.26 % 16.49 % (1) Includes core deposit intangibles and mortgage servicing assets. (2) Applied statutory tax rate of 42.05%. (3) Annualized.