East West Bancorp Annual Report 2016

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EAST WEST BANCORP ANNUAL REPORT

1 | East West Bancorp 2016 Annual Report

East West Bank
at a glance

Largest
independent
bank
based in
Southern California

Top 25

largest banks in the U.S.
by market cap

43
years

of operating history

East West Bancorp 2016 Annual Report | 2

116 branches
across the U.S.
California .................................
89
Georgia .......................................
3
Massachusetts .........................
2
Nevada .........................................
1
New York ...................................
6
Texas ...........................................
11
Washington ..............................
4

Offices across
Greater China
Full-service
branches
Hong Kong
Shanghai
Shanghai FTZ
Shantou
Shenzhen

Representative
offices
Beijing
Chongqing
Guangzhou
Taipei
Xiamen

Top 25

largest banks in the U.S.

by market cap

years

of operating history

$35
billion

asset size

2,900

associates to serve
our customers

Top 15

America’s best banks
by Forbes since 2010

12%

10 year loan CAGR*

1 of only 3

U.S. banks with a
license in China

15%

10 year deposit CAGR*

*Compound Annual Growth Rate

15%

EWBC

S&P 500 KBW Bank

Index

15%

annualized TSR* since
going public in 1999

*Compound Annual Growth Rate

*Total Shareholder Return. Source: Bloomberg.

3 | East West Bancorp 2016 Annual Report

A Message from our Chairman and CEO

Dominic
Ng

Dear Shareholders,

In 2016, East West delivered another
year of strong financial performance,
based on solid growth and industry-
leading profitability. Against a backdrop
of persistently low interest rates, our
results stood out favorably. This year,
the general outlook for the banking
industry turned a corner as interest rates
began to move higher in late 2016. East
West’s asset sensitive position makes us
optimistic about the new environment,
and we look forward to producing strong
financial performance in 2017 and beyond,
continuing our track record of creating
long-term shareholder value.

For the coming years, we continue to
see attractive opportunities for growth
in pursuing our cross-border business
banking strategy, which was a key driver
of loan growth in 2016, and in which we
have made substantial investments.
In my view, with the geopolitical noise
between the United States and China,
East West’s expertise in both markets
makes us more valuable to our customers.
In my “Perspectives on China” section of
this report, I discuss in more detail
China’s economic outlook and reform
plans, as well as the evolving relations
between the U.S. and China.

East West Bancorp 2016 Annual Report | 4

Our 2016 returns on assets
and equity were in the
top 10% of publicly traded
banks in the U.S.

As of December 31, 2016, our total assets
reached a record $34.8 billion. We are the
largest independent bank headquartered
in Southern California and one of the top
25 largest banks in the U.S. by market
capitalization. As the largest state economy
and one of the largest economies in the
world, California is a dynamic market that
fuels our domestic business, supporting
broad-based growth in loans and deposits.
Our branch footprint is in some of the
most vibrant metropolitan markets in
the country, including Los Angeles,
San Francisco, New York, Seattle, Dallas,
and Houston.

In addition to cross-border banking, we see
tremendous value in growing our retail and
small business banking franchise, which
are both the basis for our strong deposit
position as well as a profitable and highly
diversified source of commercial loans
and commercial real estate loans. At East
West, we believe that small businesses
are a critical component of the American
economy and we are committed to
supporting their growth.

Looking into the future, I am confident that
the East West value proposition for our
customers will continue to be unparalleled.

5 | East West Bancorp 2016 Annual Report

Strong Financial
Performance in 2016

Our full year 2016 record net income of
$432 million grew by 12% year-over-year,
and our record earnings per share of $2.97
also grew by 12% from 2015. Consistently
achieving industry-leading profitability
metrics is a hallmark of East West’s
financial performance and 2016 did not
disappoint. Our full year 2016 return on
assets of 1.3%, return on equity of 13.1%,
and return on tangible equity of 15.7%
were all in the top 10% of publicly traded
banks in the United States. East West’s
tangible equity per share expanded by
12% year-over-year to $20.27, a growth
rate in the top 15% of publicly traded banks
in the U.S. I am pleased with East West’s
financial performance in a year of increased
investment in technology and infrastructure
to enhance our risk management, product
offerings, and client experience.

As of December 31, 2016, our total loans
reached a record $25.5 billion, up 8% from
a year ago. Total deposits reached a record
$29.9 billion, up 9% from the prior year.

Our loan growth in 2016 was broad-based
across all of our major portfolio segments.
Over the past decade, we diversified our
loan mix to be well balanced between
commercial loans, commercial real estate
loans, and consumer lending. In my view,
this is a prudent approach to achieve
stability through varying macroeconomic
scenarios and credit cycles. I would like to
highlight that over 75% of our loan portfolio

RETURN ON ASSETS

1.25%

1.27%

1.30%

2014 2015 2016

RETURN ON EQUITY

12.7%

13.1%

2014 2015 2016

RETURN ON
TANGIBLE EQUITY*

16.0%

15.6%

15.7%

Peer
median

1.4%

1.2%

1.0%

0.8%

0.6%

14%

12%

10%

18%

14%

10%

2014 2015 2016

* For reconciliation of GAAP to non-GAAP financial
measures, please see the Company's financial
press releases.

Note: Peer group comprised of publicly traded banks
in the U.S. as of December 31, 2016.

SOURCE: S&P Global Market Intelligence.

East West Bancorp 2016 Annual Report | 6

is variable rate, tied largely to short-term interest rate
indices, which is an advantageous position for revenue
growth in a rising interest rate environment.

Strong deposit growth was an important highlight of East
West’s results in 2016, driven by robust core deposit
growth. Core deposits grew by 16% year-over-year,
comprising 81% of total deposits as of December 31, 2016
compared to 48% ten years ago. Noninterest-bearing
deposits reached a record $10.2 billion or 34% of total
deposits at year-end, reflecting a substantial mix shift over
the past ten years. From a funding perspective, we feel
that we are well positioned to navigate a rising interest
rate environment. As of December 31, 2016, our loan-to-
deposit ratio was 85%, giving us ample room for positive
balance sheet leverage and growth in 2017.

2016 was a year of significant investments at East West.
We examined our systems, controls and processes,
actively upgrading them to ensure scalable future growth
and improve operational excellence. We invested in
technology and human capital to strengthen our risk
management infrastructure. To better serve our diverse
client base, we expanded our product capabilities,
enhancing our offerings in foreign exchange and cash
management services.

Making ongoing investments is vital for East West to
maintain our leading position among regional banks.
These investments strengthen our unique cross-border
approach and support our core retail and small business
banking franchise, reinforcing sound and profitable
growth for the future.

Transformation of East West’s Balance Sheet

LOAN MIX

DEPOSIT MIX

Today, our loan portfolio is more diversified across key
categories. Commercial loans grew to 38% at the end of
2016 from 15% a decade ago, and commercial real estate
loans decreased to 34% from 60%.

Core deposits, made up of noninterest-bearing demand
deposits, money market accounts, checking and savings,
comprised 81% of total deposits at the end of 2016,
compared to 48% ten years ago.

15%

25%

2006

60%

38%

34%

28%

2016

19%

34%

29%

52%

19%

47%

2006

2016

Commercial loans Commercial real estate loans

Noninterest-bearing demand deposits Other core deposits

Consumer loans, including single-family & multifamily mortgages

Time deposits

7 | East West Bancorp 2016 Annual Report

Acknowledgements

In conclusion, as we progress on our U.S.
and Greater China strategy, East West
will continue to develop innovative
banking solutions, building infrastructure
and expertise in order to provide superior
service to our clients. We are optimistic
about the future and our ability to grow
profitably and prudently.

On behalf of East West, I would like to
thank our clients for their support and
business, our shareholders for their
trust and confidence in our company,
and our 2,900 associates for their
exceptional efforts.

Sincerely,

Dominic Ng
Chairman and Chief Executive Officer

After more than a decade of serving on our
board of directors, Mr. John M. Lee, Vice
Chairman of East West Bancorp and East
West Bank, is retiring at the end of May
2017. John’s long relationship with East
West began at the bank’s inception – he
was East West’s first general manager
when we opened for business in 1973. In
1980, John co-founded Standard Bank, a
federal savings bank, growing the thrift to
over $900 million in assets. Under his
leadership, Standard Bank was consistently
distinguished as a top 10 best performing
thrift in the U.S. for much of its operating
history. In 2006, East West acquired
Standard Bank, at which point we
welcomed John back to East West as
Vice Chairman of our board.

We sincerely thank John for his many
contributions and years of service to
East West. We will miss his depth of
knowledge about banking, his wisdom
and thoughtful guidance.

In October 2016, we welcomed Greg
Guyett as President and Chief Operating
Officer of East West Bancorp and East
West Bank. Greg brings to East West over
30 years of international, operational and
risk management experience in banking.
I am confident in his ability to lead and
execute on our strategic priorities and
expand our business.

East West Bancorp 2016 Annual Report | 8

Financial Highlights

NET INCOME
($ in millions)

DILUTED EARNINGS
PER SHARE

TANGIBLE COMMON EQUITY
PER SHARE

$500

$400

2 % C A G R *

385

346

432

$300

278

293

$200

$100

2012 2013 2014 2015 2016

Record
Net Income

$432
million

$4.00

$3.00

3 % C A G R

2.66

2.41

$25.00

2.97

$20.00

$2.00

1.87

2.09

$15.00

13.58

14.39

1 % C A G R

20.27

18.15

16.30

$1.00

2012 2013 2014 2015 2016

$10.00

2012 2013 2014 2015 2016

Record
Diluted Earnings
per Share

$2.97

Tangible
Common Equity
per Share**

$20.27

TOTAL ASSETS
($ in billions)

TOTAL LOANS
($ in billions)

TOTAL DEPOSITS
($ in billions)

$40

$30

$20

$10

1 0 % C A G R *

28.7

34.8

32.4

24.7

22.5

2012 2013 2014 2015 2016

Record Assets

$34.8
billion

$40

$30

$20

$10

2 % C A G R *

25.5

23.7

21.8

18.1

15.1

2012 2013 2014 2015 2016

Record Loans

$25.5
billion

$40

$30

1 % C A G R *

24.0

29.9

27.5

$20

18.3

20.4

$10

2012 2013 2014 2015 2016

Record Deposits

$29.9
billion

* CAGR = 5 year Compound Annual Growth Rate from December 31, 2011 through December 31, 2016.
** For reconciliation of GAAP to non-GAAP financial measures, please see the Company's financial press releases.

9 | East West Bancorp 2016 Annual Report

Perspectives on China

By Dominic Ng
March 2017

At the National People’s Congress in March, China outlined
its economic plans for 2017, emphasizing performance
stability and setting the gross domestic product (GDP)
growth target to 6.5%, which compares to growth of
6.7% in 2016. China has stated that it is comfortable with
these growth levels to support target employment and
prosperity development, while enabling implementation
of necessary fiscal and structural reforms.

intellectual property rights protection,
strengthening
which has been a significant hurdle for investment by
international businesses; setting up tech
innovation
hubs, and increasing the tax deductibility of research and
development expenses from 50% to 75%. Continued
efforts to reduce excess capacity in old industrial sectors
such as steel or coal would also support an incremental
shift to cleaner energy.

China’s 2017 plans call for a focus on supply-side structural
reform, expansion of domestic demand, and strengthening
of the role of innovation in driving development, all in the
context of stable economic growth. Cognizant of defusing
potential economic and financial risks, government
plans include taking measures to: moderate inflated
property values in top tier cities and reduce excess real
estate inventory in other markets; advance reforms in the
financial sector; further liberalize the renminbi exchange
rate, and actively reduce leverage in Chinese businesses
by expanding equity financing options.

Reforms to ease the operating environment for businesses
include reducing and streamlining corporate tax rates,
further expanding private sector market access, and
addressing problems of overcapacity by encouraging
mergers, restructurings, or bankruptcy liquidations of
inefficient companies. Industries specifically called out for
improved access to private capital include energy, railways,
aviation, and telecommunications. At East West, over the
last two years, we have made investments to build energy
sector expertise, in anticipation of future cross-border
opportunities following industry liberalization in China.

Economic growth in China continues to shift towards
domestic demand, consumer spending and innovation-
driven emerging industries. Expectations for 2017 include
reforms and policies by the government that would
promote and accelerate this change. Retail sales of
consumer goods are targeted to increase by 10%
in 2017. In 2016, the value of the service sector rose to
52% of Chinese GDP. In 2017, government plans
include establishing a fund to encourage innovation
and international development in service industries.
Service industries highlighted for growth in 2017 include
education, senior care, healthcare, tourism, digital
media, and the arts and entertainment. At East West,
we have focused on diligently monitoring these trends,
and in terms of our cross-border commercial banking
growth, we see emerging opportunities in life sciences
and digital media.

China has placed importance on supporting technology
and innovation in big and small ways: improving and

International direct investment remains very important
to the Chinese government and the Chinese economy:
foreign direct investment in China was $126 billion and
outbound overseas investment by Chinese companies
was $170 billion in 2016, of which $45.6 billion was into
the U.S., a record level and three times the amount in 2015.
In my view, the continued expansion of foreign investment
in China is a positive development that can stimulate
growth internationally. In 2017, the Chinese government
plans to revise its catalog of industries open to foreign
investment, making service industries, manufacturing
and mining more accessible; allowing foreign firms to
participate in national science and technology projects,
and leveling the playing field for foreign firms in regards to
license applications or government procurement.

Domestic challenges to achieving China’s GDP growth
targets continue to be persistent industrial overcapacity,
levels, and capital outflows. Globally,
rising debt
geopolitical uncertainty, sluggish economic growth,

East West Bancorp 2016 Annual Report | 10

and declining trade prospects are also areas of concern.
China views the promotion of regional trade agreements,
policies to ease foreign trade, and domestic infrastructure
investment as potential offsets to these headwinds.

It is important to note that the reforms discussed at the
2017 National People’s Congress are not entirely new.
The implementation of reforms over the past five years
has not been successful in part due to a global economic
slowdown, volatility in the Chinese stock market, and
the struggles of adapting to currency liberalization. As
President Xi Jinping enters his second term, there will
be more opportunities for the Chinese government to
implement reforms to liberalize and strengthen China’s
economy. In my view, the reforms and policies that
the Chinese leadership is proposing are positive for
both China and the rest of the global economy, and are
vital to support high quality growth in China. They are
monumental in scope and will require time to take effect.
Yet, it is my belief that China will have better odds to
accomplish this successfully: a one-party government
system
implementing systemic
in
reform, allowing for a collective view and willingness
to engage in long-term policymaking. The likelihood of
achievable progress is further enhanced by the Confucian
value system of the people in China, who prioritize
societal good and harmony over individual rights.

is advantageous

Domestic developments in the U.S. add an element of
unknown volatility to the Chinese economic outlook and
reform plans. It is too early to tell what path the new U.S.
administration will pursue, in light of concerning rhetoric
from the campaign trail. The Chinese appear open
to bilateral trade discussions and are
interested
in investment in the U.S. through infrastructure
development, greenfield manufacturing projects, and
collaboration with U.S. companies. In particular, tech,
clean tech, biotech and entertainment industries will
benefit from Chinese strategic interest. A deterioration
of trade relations between the two countries would
substantially damage GDP growth in both markets,

for U.S. companies and
with material downside
workers. On the other hand, nimble bargaining between
governments and the further opening up of Chinese
markets would create
for
U.S. businesses and bring advantages to both sides.

favorable opportunities

The inevitability of economic opportunity and growth of
cross-border capital flows between the U.S. and China
has been a core tenet of East West’s vision for many
years. The continued progress in the Chinese economy
strengthens our vision. Nevertheless, we are realistic
about headwinds facing the Chinese markets as reforms
are necessary, economic growth has moderated, and
there are real financial risks that the government will
need to navigate against a backdrop of increased global
uncertainty and a resurgence of trade protectionism.
However, it is important to remember that both the
U.S. and China are already deeply interconnected, and
that the long-term drivers and rewards for greater
economic integration between both countries have not
substantially changed.

It is difficult to make accurate predictions amidst the
noise and uncertainty, but we see favorable prospects for
East West’s cross-border client base. A substantial share
of East West’s cross-border clients are U.S. companies
pursuing a Chinese strategy, and well-executed trade
negotiations between both countries could open
up growth opportunities for American companies.
Furthermore, a growing share of East West’s clients
are Chinese middle market companies expanding their
businesses in the U.S. Although the level of Chinese
overseas investment in 2017 is expected to be lower
than in 2016, the motivations for cross-border expansion
into the U.S. exist independent of trade policy and may
increase in times of volatility. In my view, East West’s
unique value proposition as the financial bridge between
the East and the West allows us to offer our clients
expertise to navigate challenges in both markets, identify
risks arising from volatility and capitalize on emerging
opportunities, coming out ahead.

11 | East West Bancorp 2016 Annual Report

The
Bridge
to Success

From small entities to large enterprises, from local needs to global
transactions and everything in-between, our business products and
professionals connect our customers to success. We craft integrated
solutions that address multi-faceted client needs, providing financing
options, commercial depository and cash management services, foreign
exchange and interest rate risk management. With a branch footprint
in the U.S. and Greater China, our network of experts bridge the gap
between the East and the West to help our customers reach further.

East West Bancorp 2016 Annual Report | 12

Entertainment &
Digital Media

Entertainment

Digital Media

Collaborations in the entertainment industry between
U.S. and Chinese companies have gained momentum at
incredible speeds in recent years, and Chinese companies’
investment into U.S. entertainment content continues to
be strong. East West Bank stands out as a premier lender
in the entertainment industry, one of the few banks with
an active presence in both the U.S. and Greater China,
and the only U.S.-based bank financing film and television
production in China. Our Entertainment Financing Team
has been a pivotal intermediary between Chinese and
American entertainment company partnerships, bolstered
by our expertise in production financing, as well as the
knowledge of legal complexities and cultural nuances in
both markets. This distinctive combination of sector and
market expertise differentiates East West from the
competition, and uniquely supports our entertainment
clients’ cross-border growth and strategic needs.

An intersection between content generation and
innovative technology to support content distribution,
digital media is a new and growing industry. By blending
our entertainment financing experience with venture
capital style lending, East West is strategically positioned
as a leading bank in the emerging digital media space.
We excel at providing tailored, comprehensive commercial
banking solutions and in-depth industry knowledge
through the collaborative, cross-discipline approach of our
dedicated bankers. East West’s presence and experience in
the U.S. and Greater China markets are an attractive value-
add for our digital media clients that are planning their
cross-border strategies and expansion.

East West in Action

Founded in 2004, and now trading on the Shenzhen Stock Exchange, Perfect World Co., Ltd. (Perfect World) is a leading
diversified entertainment company headquartered in Beijing, with multiple locations around the world including California.
Its businesses encompass digital gaming, film and television production and distribution, as well as theatrical exhibition.
Last year, Perfect World entered into a five year, 50 picture co-financing venture with Universal Studios, expanding its
film entertainment business internationally.

East West Bank provided Perfect World with cross-border credit facilities to support the expansion of their entertainment
business in both China and the U.S., as well as cash management services to facilitate their co-investment with
Universal Studios.

13 | East West Bancorp 2016 Annual Report

Technology &
Private Equity

Technology

Private Equity

East West Bank’s Technology Team is uniquely positioned
to provide sector-specific technology banking expertise
with value enhancing cross-border perspectives to help
clients achieve their global growth vision.

Our team of experts can simplify the complicated process
of raising capital, structuring acquisition financing or
syndicating loans to support company expansion, and
help manage cash flow with tailored cash management
and foreign exchange products that adapt to the changing
needs of technology clients as their businesses develop.
Importantly, we have infrastructure and expertise on
both sides of the Pacific, which is a pivotal value-add in
helping businesses formulate their cross-border strategies
in the U.S. and Greater China markets. By bridging the
international gap for customers, we transform possibilities
into realities.

At East West, our Private Equity Team has the deep
expertise to support our clients’ complex and specialized
banking needs. Our team is able to strike the optimal
balance between capacity and responsiveness,
successfully serving clients in a wide range of asset
classes, sizes and company life cycle stages.

Our branch network in Greater China gives us the singular
ability to provide comprehensive solutions, including
funding in local currency, to private equity firms with
interests in Asia. For clients on both sides of the Pacific, we
create robust, integrated solutions that deploy a complete
range of commercial banking products, foreign exchange
and interest rate hedging, electronic banking and letters of
credit to solve multi-faceted banking needs of our private
equity fund clients.

East West in Action

Ultra Clean Holdings, Inc. (UCT) is a leading developer and supplier of critical systems and subsystems for the
semiconductor and flat panel capital equipment markets along with other high precision manufactured products. UCT
maintains operations in both the U.S. and China and is listed on the Nasdaq stock exchange. Although UCT had significant
cash balances in their China operations, historically the funds were not available to quickly respond to acquisition
opportunities or other business needs in the U.S.

Leveraging our extensive knowledge and our branches in China, East West Bank was able to assist UCT in utilizing its
capital in China to support liquidity requirements and acquisition activities globally. Concurrently, our team organized a
lending syndicate that meets UCT’s banking needs on a comprehensive basis. UCT experienced first-hand the cross-border
value that a collaboration with East West can provide in supporting multi-market growth.

East West Bancorp 2016 Annual Report | 14

Foreign Exchange &
Global Transaction Services

Foreign Exchange

Global Transaction Services

Opportunities available for businesses operating globally
can be vast, but can also present additional risks that
need to be managed. Geopolitical fluctuations and
concerns about the global economic landscape can
increase market volatility and unpredictability. East West
Bank's Foreign Exchange (FX) Team offers solutions and
guidance for our clients to help them minimize currency
exchange risk, manage market volatility, and effectively
navigate uncertainties.

With our cross-border expertise in the U.S. and Greater
China and a comprehensive suite of products, we bring
simple, cost-effective solutions to help our clients grow
their businesses internationally with confidence. In
collaboration with our clients, our FX Team develops
customized “best practice” frameworks that meet clients’
currency management objectives related to cross-border
acquisitions, risk management programs, or remittance
procedures, ultimately helping to mitigate cash flow
volatility and improve revenue stability.

East West in Action

The Global Transaction Services (GTS) Team at East
West offers a suite of cash management solutions
with a diverse breadth of capabilities to help our clients
effectively and efficiently manage their working capital.

In 2016, our GTS Team launched businessBridge®Premier,
a powerful digital platform that brings the bank to the
client’s office, elevating the high quality service that we
provide to our commercial depository clients. Featuring
a customizable user interface and advanced fraud
protection, the platform streamlines clients’ operational
needs in managing cash flow, and utilizing various
payment and approval options. For clients with cross-
border requirements, the platform features convenient
access to domestic and overseas accounts, and offers
security verification options adapted to international
travel demands. A growing number of our clients based
in Greater China are adopting businessBridge®Premier for
their global cash management needs.

Flurida Group Inc. (Flurida) is a U.S.-based company that provides essential parts and finished products to global home
appliance companies such as Electrolux, Whirlpool, Haier and General Electric. Flurida’s manufacturing facilities are
located in China, and the company distributes and sells its products in the U.S. and throughout Europe.

With essential expertise in Asian currency transactions and a presence in the U.S. and Hong Kong, East West Bank's
FX Team provided currency exchange and hedging services to Flurida. As part of our advisory services, we provided regular
market updates, insight and outlook, enabling the company to make informed day-to-day currency management decisions.
Offering 24-hour, bilingual client access and frequent communications, East West has become a valued contributor to
Flurida in supporting their global, multi-currency operations.

15 | East West Bancorp 2016 Annual Report

Commercial Real Estate &
Interest Rate Contracts

Commercial Real Estate

Interest Rate Contracts

For decades, East West Bank’s experienced team of
Commercial Real Estate (CRE) professionals have
consistently provided our clients the funds necessary to
acquire, renovate, and develop real estate properties. From
financing ground up construction to bridge loans and term
CRE mortgages, we support property development at all
stages. Our broad client base includes established CRE
developers, small businesses that own their real estate
facilities, and individual real estate investors. With East
West’s knowledge of both the U.S. and Greater China
markets, we are uniquely well positioned to assist U.S.-
based real estate developers in sourcing international
equity financing for their projects, or to support China-
based real estate companies’ investment in the U.S.
property markets.

Navigating changing economic and interest rate
environments adds risks and uncertainties that can distract
many borrowers from efficiently growing their businesses
day-to-day. After nearly a decade of low interest rates,
the newly rising interest rate environment has increased
pressure on businesses to proactively manage interest
rate risk. To help mitigate some of the volatility, East West
offers a broad range of hedging products to minimize
interest rate risk for our commercial and commercial real
estate borrowers, adding stability in an uncertain world.
Working in collaboration with our clients, our Interest
Rate Contracts Team tailors customized solutions to meet
clients’ unique situations and objectives, enabling them to
effectively respond to interest rate fluctuations.

East West in Action

Landsea Green Properties Co., Ltd. (Landsea) is an international homebuilding and real estate development company that
is listed on the Hong Kong stock exchange and ranked among the top 100 Chinese real estate companies. With operations
in the U.S., China and Europe, Landsea brings environmentally responsible designs and technologically advanced innovation
to the global residential marketplace, building communities based on energy conservation, comfort and healthy living.
Landsea’s U.S. subsidiary is developing a 209 unit residential community in Simi Valley, California.

East West Bank provided financing for Landsea’s Simi Valley development, and the breadth of our commercial depository
products and foreign exchange services made it convenient for Landsea to execute banking transactions between
its operating entities in the U.S. and Greater China. East West’s deep experience in the U.S. property markets and
understanding of the intricacies related to Chinese investment in U.S. commercial real estate have been an attractive
value-add in our collaboration with Landsea.

East West Bancorp 2016 Annual Report | 16

Built on a Foundation
of Relationship Banking

Over forty years ago, East West opened its doors as one of the first
thrifts in California to serve the Chinese-American community. Over
time, East West developed into a full-service bank offering a wide range
of loan, deposit, cash management and wealth management services
for our consumer and business customers. Built on a foundation of
relationship banking, East West has grown to be the largest independent
bank based in Southern California.

Evolving and Growing with Our
Customers Over Time

Carrying Relationships Across
Generations

Providing a Smooth Transition for
New Customers

Strong, enduring relationships are at
the heart of our service. We take the
time to know our customers well,
developing a thorough understanding
of their banking needs to provide
personalized solutions for their unique
situations. As our customers’ banking
needs evolve through various business
and life stages, we are there to help
them succeed every step of the way.
Our customers can always count on
East West Bank to stand beside them,
offering financial support and advice
when they need it most.

Passing a small business banking
relationship from one generation to
the next is a delicate banking art that
requires instilling the confidence
cultivated with the first generation
in the successors. At East West, we
recognize the importance of inter-
generational transitions and have the
understanding to smooth the
process culturally and financially.
Our customer-centric approach
not only appeals to our long-term
customers but it is also winning over
their children.

Our relationship-centric approach
helps alleviate the stress of moving
to a new region or country. We
guide our customers beyond
banking in both their personal and
commercial endeavors – from
setting up their home to setting up
their business. With the depth of
our resources and our dedicated
bankers, we make the transition of
moving a seamless one for our
diverse, multi-ethnic customer base.

17 | East West Bancorp 2016 Annual Report

At East West, We Care
About Our Communities

Spirit of Los Angeles
& Model Campaign
of the Year

United Way
Tocqueville Society

AWARD

Community
Leadership

AWARD

United Way
of Greater Los Angeles

United Way
Worldwide

California Journal
for Filipino Americans

1 out of 3

East West Bank branches
are located in low-to-moderate
income areas

$660 million

Small business lending in 2016

$485 million

Financing for affordable housing and
homes in low-to-moderate
income areas in 2016

CONTRIBUTIONS

DONATIONS

VOLUNTEERED HOURS

$22.7 million

Corporate giving since 2010

$5.4 million

By East West and its
associates for our annual
United Way campaign since 2010

20,800+

Dedicated to CRA community
development services
since 2010

East West Bancorp 2016 Annual Report | 18

At East West, we believe that growing and revitalizing our communities
is good business. We promote and support our communities by
providing loans and other financial products that help make dreams
possible, and through volunteering and financial support.

Affordable Housing

Impact, responsiveness and flexibility are the drivers for our affordable housing programs. We understand that it can be
challenging for some individuals and families that live in low-to-moderate income communities to qualify for a home loan.
Our products are designed to help meet and overcome such challenges.

HomeReady: In 2015, East West Bank introduced the HomeReady Loan Program, an affordable mortgage product that
helps qualified low-to-moderate income borrowers buy a home with a down payment of as little as 3%. Subsequently,
in 2016 we introduced a forgivable grant that home buyers can utilize to make the dream of home ownership even
more accessible.

WISH Program: We provide down payment assistance for individuals in our communities by helping homebuyers access
federal grant funds. East West Bank participates in the WISH Program (Workforce Initiative Subsidy for Homeownership),
which provides qualified homebuyers with up to $15,000 of additional down payment funds.

Affordable Housing Financing: For over 20 years, East West Bank has been active in providing financing for affordable
housing projects. One notable project we financed in 2016 was the construction of the Copper Square Apartments in
Lancaster, California, a nine-building complex with 204 units. Rental rates for the units will be approximately 22% to 35%
lower than the market rate in the area, and the units will be available to tenants earning a maximum 60% of the area
median income.

Small Businesses

We believe that the jobs, wealth, and social capital that small businesses create are essential to thriving communities and
sustained economic development. East West Bank responds to the needs of small businesses in several ways.

Micro Loans: In January 2016, we initiated a Micro Loan Program that gives borrowers greater access to affordable capital
to start or expand their businesses. The micro loans range in size from $5,000 to $25,000 and carry flexible terms to
maximize borrower access. These loans are marketed internally and through a partnership with the City of Los Angeles
and the Small Business Administration (SBA).

Small Business Administration Loans: As an SBA National Preferred Lender, we offer SBA 7(a) commercial loans to
finance working capital needs and SBA 504 term loans to finance the purchase of real estate or equipment. The general
benefits of these programs to borrowers include low down payments, longer terms, smaller monthly payments and
full amortization.

19 | East West Bancorp 2016 Annual Report

Across our footprint, our involvement in the community is diverse and
engaged. Here are some ways in which our dedicated associates make a
difference in our communities.

East West Bancorp 2016 Annual Report | 20

United Way

Center for Asian Americans United
for Self Empowerment

20 Years of Partnering with United Way
East West Bank is proud of its partnership with the
United Way. In 2016, we participated in our 20th annual
United Way workplace campaign. This milestone was
marked by our highest amount donated to the campaign
from associates and corporate giving.

10th United Way HomeWalk 5K Family Run/Walk
United Way of Greater Los Angeles’ 10th annual
HomeWalk in 2016 was the most successful since its
inception and also the 10th year East West has participated
in this event. East West Bank’s team of 320 associates
and their family members marched for the cause to end
homelessness in Los Angeles County, ranking as one of the
top three teams based on the dollar amount raised as well
as the number of participants.

Financial Literacy Programs

“Literacy can lead to success” is a value in which we firmly
believe, and the driving force behind our community efforts
in financial literacy programs. The bank has long-standing
collaborations with nonprofit partners such as Operation
Hope, Junior Achievement, Boys & Girls Club and the FDIC
Money Smart Program to provide financial education for
over 2,000 youths across the country.

Our Las Vegas branch associates partnered with
Spread the Word Nevada, a children’s literacy nonprofit
organization whose goal is to inspire reading and introduce
money management to underprivileged students. Through
the “Books & Buddies” program, our associates worked
one-on-one with children to improve their reading
proficiency, comprehension, and oral reading skills. The
“Books & Buddies” program seeks to enhance classroom
literacy efforts by giving children personalized attention.

Villa Esperanza

East West has for many years supported Villa
Esperanza, a Pasadena-based nonprofit organization
focused on services for those in our community who
are developmentally disabled. These services include
education for students and independent living facilities for
adults. Along with English, assistance is provided in both
Spanish and Chinese.

Center for Asian Americans United for Self Empowerment
(CAUSE) is a nonprofit, nonpartisan, community-based
organization with a mission to advance the political
and civic empowerment of the Asian Pacific American
community through nonpartisan voter outreach, education,
and training as well as leadership development. We have
supported and been closely involved with CAUSE for
over 20 years.

Promoting Cultural Exchange In Our Communities

Beyond being a financial bridge for our customers,
East West is also a cultural bridge. We promote
cultural diversity and exchange by fostering a greater
understanding of Chinese language, art and culture in the
United States. In 2016, we were the lead corporate sponsor
of the “Cave Temples of Dunhuang: Buddhist Art on
China’s Silk Road” exhibition at the Getty Center in
Los Angeles. The exhibition featured full-scale,
hand-painted replica caves transported from China,
an immersive 3D tour experience and exhibit halls
showcasing prized artifacts.

Replica cave from the "Cave Temples of Dunhuang" exhibition, Getty Center,

Los Angeles. Photo courtesy of the Getty Center.

21 | East West Bancorp 2016 Annual Report

Board of
Directors

Molly Campbell
Director of the Port Department
Port Authority of New York and New Jersey

Iris S. Chan
Chief Executive Officer
Ameriway, Inc.

Rudolph I. Estrada
Chief Executive Officer
Estradagy Business Advisors

Paul H. Irving
Chairman
Milken Institute Center for the Future of Aging

John M. Lee
Vice Chairman
East West Bancorp, Inc. and East West Bank

Herman Y. Li
Chairman
C&L Restaurant Group, Inc.

Jack C. Liu, Esq.
Senior Attorney
Alliance International Law Offices

Dominic Ng
Chairman and Chief Executive Officer
East West Bancorp, Inc. and East West Bank

Keith W. Renken
Managing Partner
Renken Enterprises

Lester M. Sussman
Senior Practice Director
Resources Global Professionals

East West Bancorp 2016 Annual Report | 22

Summary of Selected Financial Information

($ in millions, except per share data)

2012

2013

2014

2015

2016

SUMMARY OF OPERATIONS

Net interest income

Net income

Diluted earnings per common share

Dividends declared per common share

AT PERIOD END

Total assets

Total loans

Total deposits

Stockholders' equity

FINANCIAL RATIOS

Net interest margin

Return on assets

Return on equity

TOTAL RETURN PERFORMANCE

EWBC KRX S&P 500

300

250

200

150

100

919

278

1.87

0.40

22,540

15,074

18,309

2,386

4.63%

1.27%

11.94%

956

293

2.09

0.60

24,732

18,079

20,413

2,366

4.38%

1.24%

12.50%

1,041

346

2.41

0.72

28,744

21,773

24,009

2,856

4.03%

1.25%

12.72%

950

385

2.66

0.80

32,351

23,692

27,476

3,123

3.35%

1.27%

12.74%

1,033

432

2.97

0.80

34,789

25,525

29,891

3,428

3.30%

1.30%

13.06%

December 31,

2011

2012

2013

2014

2015

2016

EWBC

KRX

$100

$111

$184

$208

$227

$284

$100

$113

$166

$170

$180

$251

S&P 500

$100

$116

$154

$175

$177

$198

This table and graph assume that on December 31, 2011, $100 was
invested in EWBC common stock, the KBW Nasdaq Regional Banking
Index (KRX) and the S&P 500, and that all dividends were reinvested.

SOURCE: S&P Global Market Intelligence and Keefe, Bruyette & Woods, Inc.

2011 2012 2013 2014 2015 2016

EWBC 5-YEAR STOCK PERFORMANCE

TOTAL SHAREHOLDER RETURN
(as of December 31, 2016)

High Year-end Low

EWBC

S&P 500

$51.73

$50.83

$27.25

$46.50

$41.56

$35.68

$35.43

$34.97

$22.11

$39.71

$38.71

$30.50

$24.39

$21.49
$19.58

2012

2013

2014 2015 2016

$60

$40

$20

200%

150%

100%

50%

184%

98%

54%

29%

25%

12%

1-yr

3-yr

5-yr

SOURCE: S&P Global Market Intelligence.

23 | East West Bancorp 2016 Annual Report

Consolidated Balance Sheets

($ in millions)

ASSETS

Cash and cash equivalents

Interest-bearing deposits with banks

Securities purchased under resale agreements (resale agreements)

Investment securities

Loans held-for-sale

Loans held-for-investment

(net of allowance for loan losses of $261 in 2016 and $265 in 2015)

Investment in Federal Home Loan Bank (FHLB) stock, at cost

Investment in Federal Reserve Bank stock, at cost

Investments in qualified affordable housing partnerships, net

Investments in tax credit and other investments, net

Premises and equipment (net of accumulated depreciation of $115 in 2016 and $100 in 2015)

Goodwill

Other assets

Total assets

LIABILITIES

Customer deposits:

Noninterest-bearing

Interest-bearing

Total deposits

Short-term borrowings

FHLB advances

Securities sold under repurchase agreements (repurchase agreements)

Long-term debt

Accrued expenses and other liabilities

Total liabilities

STOCKHOLDERS' EQUITY

Common stock, $0.001 par value, 200,000,000 shares authorized; 164,604,072 and 164,246,517 shares issued

in 2016 and 2015, respectively

Additional paid-in capital

Retained earnings

Treasury stock at cost - 20,436,621 shares in 2016 and 20,337,284 shares in 2015

Accumulated other comprehensive loss, net of tax

Total stockholders' equity

DECEMBER 31,

2016

2015

1,879

323

2,000

3,480

25,243

184

173

160

469

782

34,789

10,184

19,707

29,891

322

350

186

552

31,361

0.2

1,727

2,188

(439)

(48)

3,428

1,361

300

1,600

3,773

23,379

194

187

167

469

805

32,351

8,657

18,819

27,476

—

1,019

—

206

526

29,228

0.2

1,701

1,873

(436)

(15)

3,123

Total liabilities and stockholders' equity

34,789

32,351

East West Bancorp 2016 Annual Report | 24

Consolidated Statements of Income

YEAR ENDED DECEMBER 31,

2016

2015

($ in millions, except per share data)

INTEREST AND DIVIDEND INCOME

Loans receivable, including fees
Investment securities
Resale agreements
Investments in FHLB and Federal Reserve Bank stock
Interest-bearing cash and deposits with banks

Total interest and dividend income

INTEREST EXPENSE

Customer deposits
Federal funds purchased and other short-term borrowings
FHLB advances
Repurchase agreements
Long-term debt

Total interest expense

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Provision for credit losses

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

NONINTEREST INCOME (LOSS)

Branch fees
Letters of credit fees and foreign exchange income
Ancillary loan fees
Wealth management fees
Derivative fees and other income
Net gains on sales of loans
Net gains on sales of available-for-sale investment securities

Changes in Federal Deposit Insurance Corporation indemnification asset and receivable/payable

Other fees and other operating income

Total noninterest income (loss)

NONINTEREST EXPENSE

Compensation and employee benefits
Occupancy and equipment expense
Deposit insurance premiums and regulatory assessments
Other real estate owned expense (income)
Legal expense
Data processing
Consulting expense
Deposit related expenses
Computer software expense
Other operating expense
Amortization of tax credit and other investments
Amortization of premiums on deposits acquired
Repurchase agreements' extinguishment costs

Total noninterest expense

INCOME BEFORE INCOME TAXES
Income tax expense

NET INCOME

EARNINGS PER SHARE

Basic
Diluted

$
$

1,035
53
31
3
15

1,137

84
0.7
6
9
5

105

1,033

1,005

41
46
19
13
17
6
10

—

183

300
61
23
1
3
12
23
10
13
77
83
8
—

616

572
141

432

3.00
2.97

$
$

969
41
20
6
18

1,054

74
0.1
4
21
5

103

950

936

39
39
15
18
16
25
40
(38)

183

262
61
19
(9)
16
10
17
10
9
78
36
9
22

541

579
194

385

2.67
2.66

25 | East West Bancorp 2016 Annual Report

Investor Information

Transfer Agent and Registrar

Stockholders with inquiries about accounts,
lost stock certificates or changes of address
may contact the Computershare customer
service department:

Computershare
250 Royall Street
Canton, MA 02021
(877) 254-8651 (available 24-hrs a day)

Independent Registered Public Accounting Firm
KPMG LLP

Exchange
NASDAQ: EWBC

Number of Shares Outstanding at
December 31, 2016
144,167,451

Financial Information and Mailings

Annual Meeting

You may obtain the Company’s annual reports on
Form 10-K, quarterly financial results and other
financial information by writing or calling:

The 2017 Annual Meeting of Stockholders
will be held at 2:00 p.m. Pacific Time
on Tuesday, May 23, 2017 at:

East West Bancorp, Inc.
Investor Relations
135 N. Los Robles Avenue, 7th Floor
Pasadena, CA 91101
(626) 768-6000

To receive Company news releases via e-mail,
please contact Investor Relations at the
telephone number or address above or sign up at
www.eastwestbank.com/investors

East West Bancorp, Inc.
Corporate Headquarters
135 N. Los Robles Avenue, 6th Floor
Pasadena, CA 91101

Formal notice of the meeting with a proxy card and
proxy statement is being mailed to all stockholders of
record as of March 29, 2017.

The proxy statement, annual report on Form 10-K and
proxy card are available at:
www.eastwestbank.com/annual

East West Bancorp 2016 Annual Report | 26

East and West
Tyrus Wong, 1984
Oil on Canvas
Displayed at:
Corporate Headquarters, Pasadena, CA

Cover Art: Tyrus Wong (1910-2016) was a Chinese-American artist whose tale of perseverance and remarkable
achievements lives on to inspire future artists. Born in Guangdong, China, Wong immigrated to the U.S. in 1920. By junior
high school, Wong’s artistic talents were already apparent, earning him a scholarship at the Otis Art Institute in Los
Angeles. At a time when it was unheard of for a Chinese immigrant to pursue a career as an artist, Wong would go on to
become a painter, designer, muralist, lithographer, ceramicist and kite maker. In 1938, Wong became the first Chinese-
American to work as an illustrator at the Walt Disney Company (Disney). Wong eventually became the lead artist for
Disney’s 1942 animated film classic Bambi, although at the time he was only credited as a background artist. Trained in
classical Chinese calligraphy, Wong brought a poetic quality to the animated film. It was not until 2001 that Wong was
bestowed the honor “Disney Legend” by Disney, in formal recognition for his contributions to the critically acclaimed film.

The back and front covers of this annual report feature a diptych by Tyrus Wong that reads “East” and “West” together.
Commissioned by East West, Wong used bold, sweeping calligraphic strokes to convey the letters that form the two words.
The artwork bridges eastern calligraphy with western movement, creating a balanced harmony that captures Wong’s
heritage and artistic style, and is an apt reflection of the spirit of East West.

CORPORATE HEADQUARTERS
135 N. Los Robles Avenue
Pasadena, CA 91101
(626) 768-6000