East West Bancorp Annual Report 2018

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FY2018 Annual Report · East West Bancorp

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2018

East West Bancorp
Annual Report

East West Bank at a Glance

Largest independent bank
headquartered in Southern California

108 U.S. branches

81 California
11 Texas
6 New York
4 Washington

3 Georgia
2 Massachusetts
1 Nevada

3,200 associates

to serve our customers

$ 41 billion

asset size

Top 25*

largest banks in the U.S.
by market cap and asset size

* Based on independent commercial banks.

2018 — East West Bancorp Annual Report10 offices in Greater China

Branches
1 Hong Kong
2 Shanghai
3 Shanghai FTZ
4 Shantou
5 Shenzhen

Representative Offices

6 Beijing
7 Chongqing
8 Guangzhou
9 Taipei
10 Xiamen

5
1

45YEARS

of operating
history

Top 10 on Forbes'

2019 Best Banks in America

15%

10-year loan CAGR*

16%

10-year deposit CAGR*

* CAGR = compound annual growth rate, December 31, 2008 to December 31, 2018.

2018 — East West Bancorp Annual Report

A Message from Our Chairman, President and CEO
Dominic Ng

Dear Shareholders,

On February 11, 2019, I was joined
by our board of directors and senior
management to ring the Nasdaq
opening bell in celebration of East
West’s 20th anniversary as a publicly
traded company. I am proud of the
milestones and growth that East West
achieved throughout its history. We have

a long, well-established track record of
strong financial performance. But more
meaningfully, as our customers have
grown in size and complexity, so has
our banking expertise. This evolution of
our capabilities enabled us to grow and
succeed alongside our customers.

2018 — East West Bancorp Annual ReportEast West was founded in 1973 as a
savings and loan association with one
branch in Chinatown, Los Angeles.
Our mission was to provide access
to banking to the Chinese-American
community, whose needs were not
being met by mainstream banks.
Offering checking and savings accounts,
auto loans and home mortgages, we
served as a bridge for immigrants to
integrate and prosper in America. Highly
entrepreneurial, many of our customers
started family-owned businesses that
they grew with the help of small business
loans from East West. We converted
our charter into a commercial bank in
1995, to keep pace with our customers’
increasing commercial banking needs.

Our vision to be the bridge
between the East and the
West was fundamental to our
founding, and has evolved
over the years.

Over time, as many of our customers
started businesses that imported or
exported goods between the U.S. and
Greater China, our capabilities broadened
to provide international trade financing
and currency exchange for remittances.
Establishing a presence in China was
the next step in serving as the financial
bridge between the East and the West
for our customers. Our first entry into
Greater China was in 2003, through a
representative office in Beijing. This was
followed by the opening of our first branch
in Hong Kong in 2007, and the addition
of a local currency commercial banking
license in China in 2009. Our Greater China
presence now comprises five branches
and five representative offices in cities key
for cross-border commerce.

The increase in bilateral foreign direct
investment between the U.S. and China
created new and different business
opportunities for our customers – and
East West – to pursue. Accordingly,
based on our assessment of which
sectors would offer the greatest scope
for commercial growth between the two
economies, we built expertise in industry
verticals such as entertainment, private
equity, and technology.

As our customers’ businesses expanded
domestically and internationally, so did
their banking requirements. To help our
customers manage market volatility, we
added interest rate, foreign currency
and commodity risk hedging. To service
the business operating accounts of our
customers, we elevated the capabilities
of our cash management products.
Whether to invest in or start a company,
build manufacturing facilities, or diversify
supply chains – we have the products and
services to meet our customers’ needs.

From our roots as a bank for immigrants,
we have grown to serve a diverse
customer base in the United States and in
Greater China. Our customers reflect the
successive waves of Chinese immigration
to the United States, the profile of which
now includes multinational corporations
and global citizens. Over the years, as
we grew in size to a regional bank, our
customer base broadened beyond the
Chinese-American community to reflect
the demographics of the geographic
markets that we serve.

Today, our vision to be the bridge between
the East and the West means providing a
seamless banking experience for customers
on both sides of the Pacific, with a
comprehensive suite of lending, deposit,
and fee-based products and services.

2018 — East West Bancorp Annual Reportis reflected in the products that we offer,
and in the investments that we are
making for the future. A major initiative
for us is developing a digital consumer
banking platform tailored to the unique
needs of customers that have family,
homes and wealth in both the U.S. and in
Greater China.

Celebrating 20 Years of Public Listing

The artwork featured on the cover of
this report is Peony in Full Bloom by
Cai Guo-Qiang. The peony traditionally
symbolizes prosperity and good fortune
in the Chinese culture. We consider it an
auspicious symbol to celebrate our 20th
anniversary as a public company.

By publicly listing on Nasdaq in 1999,
we gained greater access to capital to
support the growth of our balance sheet,
organically and through acquisitions.
Compared to when we went public, our
assets have grown 20 times, from $2.1
billion to $41.0 billion. Our footprint
expanded from California to seven states
across the U.S., covering some of the
most dynamic metropolitan areas in the
country, and to Greater China. The size
of our workforce increased from 370 to
3,200 employees.

In the past 20 years, we completed 11
bank acquisitions including, most notably,
the acquisition of United Commercial
Bank in 2009, which nearly doubled our
asset size at the time from $12.5 billion
to $20.6 billion. When we went public,
our market capitalization was just $229
million. On the 20th anniversary of our
listing, our market capitalization was
$7.5 billion. Today, we are one of the 25
largest banks in the United States by
both market capitalization and asset size.

Unique among U.S.-based
regional banks, we have a
presence in Greater China and
capabilities to provide cross-
border banking solutions
between the U.S. and China.

Our dedicated cross-border team of
experienced bankers in the U.S. and
Greater China works together with
primary relationship managers to
identify the cross-border needs of each
client and craft customized solutions.
Beyond banking, we bring to the table
an extensive understanding of the local
business environment, regulations and
culture essential for our customers’
success in both countries. By identifying
partners, investors and resources
for our customers, we broaden their
opportunities, helping them enter new
markets or expand existing operations.

In our view, the two-way flow of capital
between the U.S. and China is inevitable.
We do not see the two largest economies
in the world decoupling. Therefore, we
are confident that our distinctive bridge
banking positioning will support our
business growth, differentiating us com-
petitively from other banks. Geopolitical
uncertainty creates opportunities for us
to reinforce the value we provide to our
customers and deepen our relationships.
Now more than ever, our clients need us
to interpret a changing environment and
provide banking support to adapt to and
take advantage of circumstances offered
by market disruption.

East West’s value proposition applies
to personal banking needs, too. Our
appreciation for multicultural consumers

2018 — East West Bancorp Annual ReportFinancial Highlights

Net Income ($ in millions)

Diluted Earnings per Share

1 9 % C A G R *

$704

$506

$432

$346

$385

1 8 % C A G R *

$4.81

$3.47

$2.97

$2.41

$2.66

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Record Income

$704 million

Record Earnings per Share

$4.81

Total Assets ($ in billions)

Stockholders' Equity ($ in billions)

1 1 % C A G R *

$34.8

$37.1

$41.0

$32.4

$28.7

1 3 % C A G R *

$3.8

$3.4

$4.4

$2.9

$3.1

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Record Assets

$41.0 billion

Record Equity

$4.4 billion

Total Loans ($ in billions)

Total Deposits ($ in billions)

1 2 % C A G R *

$32.4

$29.1

$23.7

$25.5

$21.8

1 2 % C A G R *

$27.5

$29.9

$35.4

$32.2

$24.0

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Record Loans

$32.4 billion

Record Deposits

$35.4 billion

* CAGR = 5-year compound annual growth rate, December 31, 2013 to December 31, 2018.

2018 — East West Bancorp Annual Report

Financial Performance in 2018

We delivered a ninth consecutive year of
record net income in 2018, earning $704
million, or $4.81 per share, an increase of
39% from 2017. Our total assets reached
a record $41.0 billion.

Total loans grew 11% year-over-year to a
record $32.4 billion as of December 31,
2018, driven by growth in commercial
loans, commercial real estate and single-
family mortgages. Total deposits grew
10% year-over-year to a record $35.4
billion as of December 31, 2018.

Record net interest income of $1.4
billion grew 17% year-over-year, buoyed
by a net interest margin expansion of
30 basis points to 3.78% for the full
year. Non-interest expense of $0.7
billion increased 8% year-over-year.
Revenue growth outpaced the growth
in expenses, and we improved our
operating efficiency.

We continue to generate attractive
profitability for our shareholders and
simultaneously strengthen capital levels.

Return on Assets

Return on Equity

1.83%

17.0%

1.25%

1.27%

1.30%

1.41%

12.7%

13.1%

13.7%

2014

2015

2016

2017

2018

2014

2015

2016

2017

2018

Return on Assets 1.83%

Return on Equity 17.0%

In Conclusion

Peony in Full Bloom was created by
Cai Guo-Qiang, a singular force in the
international art world today. Born in
China, Cai now lives in New York. He is
truly a global citizen and through his art,
a bridge between the East and the West.
Cai is renowned for the use of gunpowder
in his art, a Chinese invention that is more
than 1,000 years old. To me, the path

of his success is a parallel to the path of
many Chinese immigrants, whose success
both in the U.S. and internationally
bridges cultures and markets. At East
West, we are proud to serve as the bridge
for their financial needs.

I am honored to lead such a high-
performing bank with associates
that go above and beyond in helping
our customers achieve their goals.

2018 — East West Bancorp Annual Report

Ringing of the Nasdaq opening bell in celebration of the 20th anniversary of EWBC’s public listing.

Relationship-centric banking is at the
heart of East West’s approach, and the
longevity of our customer relationships is
a testament to its success. In this report,
we highlight three customers that have
banked with us since before our public
listing, who have built thriving businesses
that benefit their communities through
their growth.

On behalf of East West, I would like
to thank all of our customers for their
business, our shareholders for their
confidence, and our 3,200 associates
for their extraordinary efforts.

As we celebrate our 20th anniversary as
a public institution and reflect on how
far we have come, we look forward to
another 20 years of success.

Sincerely,

Dominic Ng

2018 — East West Bancorp Annual ReportWe Have Been Busy Since Going Public in 1999

$18 mm

>$100 mm

Public listing

In-store branches:
partnership with
99 Ranch Market

Stock split: 2:1

>$10 bn

$2 bn

FCB

AIB

Prime
Bank

PBB

Trust
Bank

UNB

Standard
Bank

DCB

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Enter China:
Beijing

Enter:
TX

Enter:
Hong Kong
Shanghai

370

>1,000

net income

total assets

bank acquisition

asset size of bank acquisition

number of employees

Market Capitalization

Annual Dividend

3 3 x

$229

million

$7.5

billion

$0.92**

1 5 x

$0.06*

Feb 8, 1999

Feb 8, 2019

1999

2018

* Adjusted for 2:1 stock split on June 21, 2004.
** Annualized, based on 4Q18 dividend.

2018 — East West Bancorp Annual ReportLocal currency
commercial
banking license
in China

>$200 mm

$704 mm

>$500 mm

>$400 mm

$41 bn

>$300 mm

>$30 bn

>$20 bn

UCB

WFIB

Metro

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Enter:

Hong Kong

Shanghai

Expand: WA

>2,000

Expand: TX

Enter:
NV

Enter:
Chongqing | Xiamen

Locations

Workforce

130+

locations*

branches

370

3,200

1998

2018

1998

2018

* Includes U.S. branches, offices and China locations.

2018 — East West Bancorp Annual ReportThank You
to Our Valued
Customers

As we celebrate our 20th anniversary
as a public company, we extend a
warm thank you to our customers.

Our growth and success have come
from your trust in us.

2018 — East West Bancorp Annual ReportDowntown Properties

Downtown Properties is a Los Angeles-
based real estate investment company
that is affiliated with Gaw Capital
Partners, a real estate private equity
group with over $18 billion of assets under
management. Downtown Properties’ first
project was the revitalization of the iconic
Roosevelt Hotel in Hollywood. It was at the
Roosevelt that the first Academy Awards
ceremony took place. Goodwin Gaw, the
founder of Downtown Properties and
Gaw Capital, purchased the then-derelict
Roosevelt in 1995 and turned it into one of
the hottest spots in Los Angeles, a place
to see and be seen, restoring the landmark
hotel to its glamour.

The Roosevelt provided Downtown
Properties with a blueprint for many
other successful projects: renovating
distressed heritage properties, taking
care to preserve their historical
importance. Notably, Downtown
Properties was one of the pioneers in
rehabilitating downtown Los Angeles

by acquiring many neglected buildings
with architectural significance and
transforming them into trendy places to
live, work and dine. Currently, Downtown
Properties is converting The MacArthur,
a historic, Art Deco building in Los
Angeles, into a boutique hotel and stylish
entertainment destination.

Today, Downtown Properties owns and
manages a portfolio of 15 acclaimed
properties across the U.S.

Ever since East West helped us

finance the acquisition of the Roosevelt
Hotel, a mutual trust was established.
When working with the East West
team, processes are streamlined and
layers eliminated. Therefore, we are
able to act with speed and urgency, a
key component to success in our line of
business.

Goodwin Gaw
Managing Principal, Downtown Properties

2018 — East West Bancorp Annual ReportRed Chamber Co.

Attuned to our business model and

operating requirements, East West
has supported many aspects of our
business development and growth for
more than two decades. By providing
commercial real estate loans to expand
our facilities, working capital for product
procurement and distribution, and daily
cash management services, East West
ensures that our financial needs are met
efficiently. This enables our operations to
run seamlessly.

Ming Shin Kou
Chief Financial Officer, Red Chamber Co.

Red Chamber Co. (Red Chamber) is a
wholesale distributor of seafood and
seafood-related products to retailers and
restaurant chains throughout the U.S.
The company was founded as a family-
owned restaurant in Los Angeles in
1973. Since its founding, Red Chamber
and its group of operating companies,
collectively known as the Red Chamber
Group (RCG), have expanded and evolved

their business from one restaurant into
a complete sea to table enterprise:
sourcing, processing, distributing and
exporting seafood.

From its roots as a small, family-owned
company, RCG has grown to employ over
1,200 people. It is ranked as one of the
largest seafood companies in the U.S.

Dedication to innovation and supply
chain excellence is a key to RCG’s
success. The company holds several
U.S. patents in the field of seafood
processing. Each year, the group
invests millions of dollars in equipment
purchases to better compete in the
marketplace. To source the highest
quality of seafood, RCG maintains its
own fleet of fishing vessels in California,
Costa Rica and Argentina. RCG owns
and operates its own processing facilities
on both coasts of the U.S., in Canada,
Argentina and throughout Asia.

2018 — East West Bancorp Annual ReportDr. Bill Yee, M.D.

Affectionately known as “Dr. Bill” to
his patients, Dr. Yee, Senior Managing
Partner and President of Reproductive
Partners Medical Group (RPMG), has
helped thousands of women realize their
dream of motherhood. Born in China,
Dr. Yee immigrated to the U.S. as a child,
where he went on to pursue a career in
medicine, focusing on infertility. Dr. Yee
has been in private practice for more
than 30 years and is an expert in his field.

As a pioneer in the techniques of in
vitro fertilization and embryo freezing,
Dr. Yee’s early work contributed to the
first successful frozen human embryo
transfer resulting in a healthy baby in
the U.S. Dr. Yee has also applied his
expertise to help save the lowland gorilla
from extinction, leading to successful in
vitro fertilization in this species.

RPMG is a group of four fertility
treatment centers located in the greater
Los Angeles area and one office in
Beijing, China. RPMG’s fertility specialists
are recognized as innovators in their
field, committed to ensuring that their
patients benefit from the most recent
advancements in infertility research.

Since I opened my first East West

bank account at my local branch in 1978,
East West has taken very good care of
my personal and business financial needs.
The staff at the Rolling Hills branch treats
me like family, and the bank's values are
aligned with my own. Thanks to East
West, I can focus on what I do best –
taking care of my patients.

Dr. Bill Yee, M.D.
Senior Managing Partner and President of
Reproductive Partners Medical Group

2018 — East West Bancorp Annual ReportCommitted to Our Communities

At East West Bank, commitment to serving the local community has always been
part of our core beliefs. Increasing the availability of affordable housing, providing
community development loans and lending to small businesses are some of the ways
that we are proud to fulfill that commitment. As active participants in our communities,
our associates work alongside local organizations to promote financial literacy, cultural
enrichment and enhance community wellbeing.

1 out of 3

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

$866 million

financing for affordable
housing and homes in
low-to-moderate income
areas in 2018

$569 million

small business lending
in 2018

$38.4 million

corporate giving
contributions since 2010

$7.2 million

raised by East West Bank
and its associates for
our annual United Way
campaign since 2010

32,600

volunteered hours
dedicated to CRA
community development
services since 2010

East West Promotes Financial Literacy

The knowledge to make financially
responsible decisions can have
a great impact on one’s future.
Through our partnerships with non-
profit organizations such as Junior
Achievement and Operation Hope, our

associates regularly host sessions for
grade-school students to educate them
about a range of financial literacy topics,
including basic banking, budgeting,
borrowing and income planning.

2018 — East West Bancorp Annual Report

East West Promotes Affordable Housing

Building Affordable Housing for
Families in Seattle

Preserving Low-Income Housing for
Seniors in San Francisco

Targeted for completion in 2019,
Redmond Ridge Apartments is located
just 15 miles from downtown Seattle
in the highly desirable neighborhood
of Redmond. This 109-unit townhome
community is oriented toward families
and their needs, offering larger units, an
outdoor pool, an indoor sports court, and
a children’s playground. The average rental
rate is less than half that of comparable
market rate apartments, and all units are
limited to tenants that earn less than 60%
of the average area median income.

East West is the lender for this project,
providing a construction loan and long-
term financing, as well as helping our
customer enter into an interest rate swap
to hedge against interest rate risk.

As one of the nation’s most expensive
places to live, San Francisco is a city
with a critical need for affordable
housing. A joint initiative between East
West, the Mayor’s Office of Housing
and Community of San Francisco, and
the non-profit Chinatown Community
Development Center resulted in the
purchase and designation of two buildings
in the Richmond District as permanent
affordable housing. The two adjoining
buildings are home to long-term tenants,
who are predominantly Chinese-American
seniors, with an income of less than 20% of
the average area median income.

2018 — East West Bancorp Annual ReportBoard of Directors

Molly Campbell
2019 Fellow Harvard University

Advanced Leadership Initiative

Herman Y. Li
Chairman

C&L Management Group, Inc.

Iris S. Chan
Chief Executive Officer

Ameriway Inc.

Jack C. Liu, Esq.
Senior Attorney

Alliance International Law Offices

Rudolph I. Estrada
Lead Director

Dominic Ng
Chairman, President and Chief Executive Officer

East West Bancorp, Inc. and East West Bank

Paul H. Irving
Chairman

Lester M. Sussman
Vice President, Advisory Services

Milken Institute Center for the Future of Aging

Resources Global Professionals

2018 — East West Bancorp Annual ReportSummary of Selected Financial Information

($ in millions, except per share data)

2014

2015

2016

2017

2018

Summary of operations
Net interest income

Net income

Diluted earnings per share

Dividends per share

Summary balance sheet
Total assets

Total loans

Total deposits*

Stockholders' equity

Financial ratios
Net interest margin

Return on assets
Return on equity

1,041

346

2.41

0.72

$ 28,744

$ 21,776

$ 24,009

2,856

4.03%

1.25%
12.7%

950

385

2.66

0.80

32,351

23,676

27,476

3,123

3.35%

1.27%
12.7%

1,033

432

2.97

0.80

34,789

25,526

29,891

3,428

3.30%

1.30%
13.1%

* Includes deposits held-for-sale as of December 31, 2017.

Total Return Performance

1,185

$ 1,387

506

3.47

0.80

$ 37,122

$ 29,054

$ 32,220

3,842

3.48%

1.41%
13.7%

704

4.81

0.86

$ 41,042

$ 32,385

$ 35,440

$ 4,424

3.78%

1.83%
17.0%

EWBC KRX S&P 500

December 31, 2013 2014 2015 2016 2017 2018

EWBC

KRX

$100 $113 $124 $154 $187 $136

$100 $102 $109 $151 $153 $127

S&P 500

$100 $114 $115 $129 $157 $150

This table and graph assume that on December 31, 2013,
$100 was invested in EWBC common stock, KBW Nasdaq Regional
Banking Index (KRX), and the S&P 500 Index, and that all dividends
were reinvested.

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

$200

$180

$160

$140

$120

$100

2013

2014

2015

2016

2017

2018

EWBC 5-Year Stock Performance

High Year-end Low

Capital Strength

EWBC 12.31.18

$73.98
$43.53
$40.05

$63.92
$60.83
$48.07

$46.50
$41.56
$35.68

$51.73
$50.83
$27.25

$39.71
$38.71
$30.50

$80

$60

$40

$20

Basel III Fully Phased-in Minimum Regulatory Requirements

12.2%

13.7%

10.5%

9.9%

8.5%

7.0%

4.0%

2014

2015

2016

2017

2018

CET1
capital ratio

Tier 1 risk-based
capital ratio

Total risk-based
capital ratio

Tier 1 leverage
capital ratio

2018 — East West Bancorp Annual Report

Consolidated Balance Sheet

Year ended December 31,
($ in millions, except shares)

ASSETS
Cash and cash equivalents

Interest-bearing deposits with banks

Securities purchased under resale agreements (“resale agreements”)

Available-for-sale investment securities, at fair value

Restricted equity securities, at cost

Loans held-for-sale

2018

2017

$ 3,001

$ 2,175

371

1,035

2,742

0.275

398

1,050

3,017

0.085

Loans held-for-investment (net of allowance for loan losses of $311 million in 2018

and $287 million in 2017)

32,074

28,689

Investments in qualified affordable housing partnerships, net

Investments in tax credit and other investments, net

Premises and equipment

Goodwill

Branch assets held-for-sale

Other assets

TOTAL ASSETS

LIABILITIES
Deposits:

Noninterest-bearing deposits

Interest-bearing deposits

Total deposits

Deposits held-for-sale

Short-term borrowings

Federal Home Loan Bank (“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;

165,867,587 and 165,214,770 shares issued in 2018 and 2017, respectively

Additional paid-in capital

Retained earnings

Treasury stock, at cost: 20,906,224 shares in 2018 and 20,671,710 shares in 2017

Accumulated other comprehensive loss, net of tax

185

232

119

466

—

744

163

225

121

469

650

$ 41,042

$ 37,122

$ 11,377

24,063

35,440

$ 10,887

20,728

31,615

—

326

147

598

605

—

324

172

514

$ 36,618

$ 33,280

0.166

1,790

3,160

(468)

(58)

0.165

1,755

2,576

(452)

(38)

Total stockholders’ equity

$ 4,424

$ 3,842

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 41,042

$ 37,122

2018 — East West Bancorp Annual ReportConsolidated Statement of Income

Year ended December 31,
($ in millions, except per share data)

INTEREST AND DIVIDEND INCOME
Loans receivable, including fees
Investment securities
Resale agreements
Restricted equity securities
Interest-bearing cash and deposits with banks

Total interest and dividend income

INTEREST EXPENSE
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
Branch fees
Letters of credit fees and foreign exchange income
Ancillary loan fees and other income
Wealth management fees
Derivative fees and other income
Net gains on sales of loans
Net gains on sales of available-for-sale investment securities
Net gains on sales of fixed assets
Net gain on sale of business
Other fees and operating income

2018

2017

$ 1,504
61
29
3
55

$ 1,652

235
1
10
12
6

265

1,387
64

$ 1,322

40
56
24
14
19
7
3
7
31
11

$ 1,198
59
32
3
33

$ 1,325

116
1
8
9
5

140

1,185
46

$ 1,139

41
44
23
14
18
9
8
77
4
19

Total noninterest income

$ 211

$ 258

NONINTEREST EXPENSE
Compensation and employee benefits
Occupancy and equipment expense
Deposit insurance premiums and regulatory assessments
Legal expense
Data processing
Consulting expense
Deposit related expense
Computer software expense
Other operating expense
Amortization of tax credit and other investments

Total noninterest expense

Income before income taxes
Income tax expense

NET INCOME

EARNINGS PER SHARE
Basic
Diluted

380
69
21
9
13
12
11
22
88
90

$ 714

$ 819
115

$ 704

$ 4.86
$ 4.81

335
65
24
11
12
15
10
18
83
88

$ 661

$ 735
229

$ 506

$ 3.50
$ 3.47

2018 — East West Bancorp Annual ReportInvestor 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, 2018
144,961,363

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 2019 Annual Meeting of Stockholders
will be held at 2:00 p.m. Pacific Time
on Tuesday, May 21, 2019 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, 2019.

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

2018 — East West Bancorp Annual ReportCover Art

Peony in Full Bloom

Cai Guo-Qiang, 2012
Gunpowder on paper, mounted on three
wooden panels 88 9/16 x 74 13/16 in.

Displayed at East West Bank’s
New York Regional Office, NY

Cai Guo-Qiang is a contemporary painter, installation and performance artist who
was born in 1957 in Quanzhou, Fujian, China. Cai is considered to be one of the most
influential contemporary Chinese artists today. By utilizing the unusual mediums
of gunpowder and fireworks in his art, the force of Cai’s work transcends the two
dimensional plane to engage the participants with the larger universe around them.
Cai has won many awards, including the Golden Lion at the 48th Venice Biennale in 1999.
In 2012, Cai was the first Chinese national to receive the Praemium Imperiale, a prestigious
award recognizing artists for their excellence and international impact in the arts.

In 2008, as director of visual and special effects of the Summer Olympics in Beijing,
Cai orchestrated the “giant footprints” fireworks display. Cai’s 2015 Sky Ladder, a project
that involved a 1,650-foot ladder rigged with gunpowder, was the subject of a Netflix
documentary by Academy Award-winning director Kevin Macdonald.

Most recently, Cai created a series of exhibitions for major European museums as
part of a tour titled An Individual’s Journey through Western Art History. Each distinct
exhibition juxtaposes Cai’s work, including pyrotechnical explosions, against a different
period of western art. The exhibitions have been shown at the Pushkin State Museum of
Fine Arts in Moscow, Russia, the Prado Museum in Madrid, Spain, the Uffizi Galleries in
Florence, Italy, and the National Archaeological Museum of Naples, Italy.

CORPORATE HEADQUARTERS

135 N. Los Robles Avenue, Pasadena, CA 91101

626.768.6000