East West Bancorp
Annual Report 2021

Plain-text annual report

East West Bancorp ANNUAL REPORT 2021 A N C H O R E D I N G R O W T H 111 ABO UT E AST WEST BANK East West Bancorp, Inc., with total assets of more than $60 billion, is the publicly traded parent company of East West Bank. The Bank opened its doors in 1973 in the heart of Chinatown in Los Angeles, California, as the first federally chartered savings institution focused primarily on serving the financial needs of Chinese Americans. Over the years, this market has grown and flourished, and the Bank has grown and flourished right along with it. Today, the Bank is a full-service commercial bank with more than 120 locations in key cities in the U.S. and China, serving consumer and commercial interests. The largest independent bank headquartered in Southern California, East West Bank was recognized with the “Best Board of Directors” distinction in Bank Director’s 2022 RankingBanking study. The Bank was also recognized as the “No. 1 Performing Bank” in the $50 billion and above asset category in Bank Director’s 2021 Bank Performance Scorecard. East West Bank is the financial institution of choice for entrepreneurs and industry leaders around the world. The Bank continues to innovate to meet our clients’ needs, including enhanced digital solutions. We work every day alongside our clients to provide innovative solutions to complex global challenges, from clean energy to e-commerce. As one of the few U.S. banks focused on the U.S. and China markets, we are proud to do this important work, creating a better future for generations to come. EAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T A M E S S A G E F R O M O U R C H A I R M A N & C E O In 2021, East West Bank came back together continued to drive peer-leading financial under a new normal, with new ways to performance. Our Return-to-Office process persevere through Year 2 of the pandemic was implemented thoughtfully with utmost and new ways of doing business. One thing deliberation and care. We returned to a post- remained the same: our unwavering focus isolation business environment where we to put our people first. Our impressive recognized that as a people-driven business, financial outcomes reflect this people- how we interact and collaborate in-person centered commitment. Despite pandemic- reinforces our sense of common purpose. driven challenges, we concluded the year with record revenue of $1.8 billion, assets of $60.9 billion, record loans of $41.7 billion, and record deposits of $53.4 billion. As I predicted for the year, vaccine distribution and government stimulus bolstered economic recovery, enabling us to generate robust net interest income and fee income growth, industry-leading efficiency, and substantially improved asset quality. Our shared purpose of people empowerment is anchored in East West’s heritage and founding philosophy. The past year has been an exclamation point on my three decades at the Bank, which began in 1991 when Sjamsul and Itjih Nursalim purchased the East-West Federal Savings Bank with a $40 million capital investment. My vision for the new East West was that we would expand beyond Los Angeles’ Chinese immigrant community and For our remarkable results, we were ranked the support our customers to achieve financial No. 1 performing bank among the 300 largest inclusion and fully participate in America’s publicly traded U.S. banks by the Bank Director socioeconomic and civic progress. It was a scorecard. East West’s operational excellence bold aspiration for a small savings and loan association to grow into a global bank that serves as a bridge between East and West. The Nursalims embraced this direction unequivocally and persuaded me to lead the organization into this new vision. With their seed capital, our small banking operation soared 100x from $600 million in assets to $60 billion in three decades. Reflecting on my 30-year tenure at East West Bank, I am grateful to the Nursalims for their enduring legacy. Our shared purpose of people empowerment is anchored in East West’s heritage and founding philosophy. 2 2 E A S T W E S T B A N K I N 2 0 2 1 $1.8 billion record revenue $41.7 billion record loans $60.9 billion total assets $53.4 billion record deposits 3 3 In this report, you will read about East West’s bridge-building forte bringing positive impact to our people and communities. The common thread is high satisfaction grounded in authentic partnerships. Our team expertly anticipates, responds and guides the financial needs of our customers and nonprofit partners. We assisted Simwon, a leader in electric vehicles in its expansion and supported e-commerce pioneer Newegg’s going public. Madison Resource Funding relied on our daily communication to coordinate backend services for their clients in the staffing industry, while our financing for the Apple Tower Theatre helped catalyze the historic preservation of Los Angeles’ Broadway Theatre District. 2021 also marked the commemoration of our 25-year partnership with the United Way of Greater Los Angeles. Our steadfast community commitment helped combat anti-Asian hate, honor first responders and build housing units for individuals and families transitioning out of homelessness alongside other impact-driven charitable giving. Since our founding in 1973, East West has consistently enriched the lives of the people we touch. To chart our direction in the next three years, we mapped out a rigorous strategic plan to set goals and explore growth through innovative products and processes. Our goals will remain balanced between performing in the present and transforming into the future. To perform, we’ll continue exceeding financial targets. To transform, we’ll incubate new growth, change ways of working, and develop talent and skills. Key growth priorities will be centered in Commercial Banking, Bridge Banking, Omni-channel Retail Banking and Wealth Management. Resembling the compass in our corporate logo, this strategic plan will help our team pin a destination, set the course of navigation and course-correct should we get slowed by headwinds. East West is starting 2022 from a position of strength with another Bank Director top ranking for the “Best Board.” Our broad-based, diversified loan growth momentum from 2021 is expected to continue into the new year. We are also encouraged by the favorable credit environment with our balance sheet well positioned to benefit from rising rates expectations. Further, the investments we have made over the last several years in cash management and payment-related products and services have helped strengthen our core deposit base. Navigating with purpose as our true north and an experienced crew following a strategic plan compass, East West is well equipped to sail through any rough passage to help our people reach the shores of economic recovery and financial stability. As we secure near-term results for our shareholders, we also create long-term value for all our stakeholders. In enriching the lives of all our constituents, we leverage the financial system as a force for good and forge sustainable solutions for the world’s most pressing challenges. Thank you for the opportunity to serve as your partner. Dominic Ng EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T 5 5 2 0 2 1 H I G H L I G H T S On the following pages are examples of the Bank’s work to support renowned customers at the forefront of their industries. The Bank looks forward to continuing this work in 2022, improving local communities, diversifying its portfolio and providing excellent customer service to innovators around the world. P R O F E S S I O N A L S E R V I C E S In 2021, East West Bank provided support services, helping clients achieve unique goals, including the restoration of the beautiful and historic Apple Tower Theatre in Los Angeles. C L E A N E N E R G Y This year, East West Bank continued to support clients across the clean energy space, helping leading luxury electric vehicle company NIO. M A N U FA C T U R I N G East West Bank continued to build our manufacturing portfolio, which includes Simwon, a leading manufacturer of electric vehicle parts. H O S P I TA L I T Y East West Bank helped many restaurants, including the Paris-inspired bistro and restaurant Bicyclette, flourish in the face of unprecedented challenges. T E C H N O L O G Y As technology advances, East West Bank supported e-commerce pioneer Newegg, helping them expand third-party logistics. S M A L L B U S I N E S S East West Bank’s partner Madison Resource Funding provides critical backend support services to staffing firms, which helped employers work through unique labor challenges. 1 A R T Promoting the arts is essential for East West Bank, and our support for Hauser & Wirth Gallery and Lauren Halsey helped bring immersive art experiences to the public. 1 ©Exterior view, Hauser & Wirth Los Angeles, 2016. Photo: Joshua Targownik / targophoto.com 4 4 E A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT7 7 7 Paving the Way for Electric Vehicles S I M W O N Electric vehicles (EVs) are revolutionizing the automotive industry, and Simwon is helping to lead the charge. A leading producer of EV parts, the company is opening new plants to keep up with skyrocketing demand. Headquartered in Seoul, Republic of Korea, Simwon is a Tier One supplier and strategic partner of a global Original Equipment Manufacturer (OEM). Its growth has been driven by consumers integrating more clean transportation technologies into their lives. In 2016, the company expanded to North America, opening a plant in Lathrop, California— just east of the San Francisco Bay Area—in 2018. The plant employs more than 250 people. They plan to open a similar plant near Austin, Texas in 2022. East West Bank has helped Simwon navigate its growth as a strategic partner to an OEM. Unrak Son, Chief Executive Officer at Simwon America Corporation, cites the bank’s attention to detail and commitment to developing a good business relationship as instrumental. East West Bank’s team detects our financial needs and meets them on demand, helping us with the expansion of the company. ~Sung Ik Hur, Simwon America Corporation CFO “East West Bank’s team detects our financial needs and meets them on demand, helping us with the expansion of the company,” said Sung Ik Hur, Chief Financial Officer at Simwon America Corporation. As the demand for EVs grows, Simwon continues to manufacture these critical technologies. “We work as a team and have teamwork,” Hur said. “The Bank goes way beyond the simple relationship of lender and borrower.” With help from East West Bank, Simwon continues to flourish. Through its manufacturing facilities, it provides climate-friendly transportation solutions for customers across the world. 6 E A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT9 A Parisian Trésor in Los Angeles B I C Y C L E T T E When you dine at the new French bistro Bicyclette, Chef Walter Manzke recommends caviar with soft scrambled eggs, escargot, onion tart, beef short ribs, baguette with butter and cocktails or a bottle of wine from its expertly curated wine list. Bicyclette is a homage to chefs Walter and Margarita Manzkes’ love of Parisian bistro culture. To the Manzkes, who own Bicyclette and sister restaurants République, Petty Cash Taqueria and the Sari Sari Store, their relationship with East West Bank has been exceptional. “East West Bank’s customer service is incredible. They are very good at prioritizing our needs,” said Chef Walter Manzke. “East West Bank doesn’t feel like a big bank; it feels like they are on our team.” Bicyclette includes a downstairs bistro and an upstairs restaurant. Each features different menus and inspirations, celebrating the rich diversity of Los Angeles’ food scene and drawing from Korean, Mexican, Japanese and Middle Eastern culinary influences. Both venues take advantage of California’s agricultural scene. They capitalize on Southern and Northern California’s various microclimates for extended seasonal availability of produce. “Los Angeles is a special place because it’s arguably one of the best places for produce in the world,” said Manzke. “You have this really incredible, eclectic mix of everything. It’s really a special place.” East West Bank doesn’t feel like a big bank, it feels like they are on our team. ~Chef Walter Manzke Bicyclette Manzke’s menus are directly inspired by seasonality, and he works backward to create the menu once he picks ingredients. With innovative menus, the freshest ingredients and a stunning location, the dining experience at Bicyclette is sure to impress. We’ll santé to that! 888 8 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT11 11 11 An E-Commerce Pioneer Blazes a New Trail N E W E G G E-commerce company Newegg has been technophiles’ preferred online retailer since the dawn of the industry. And after 20 years, in May 2021, the company had a new milestone: going public. “Going public helps us do more, and it’s a different type of growth,” said Anthony Chow, CEO of Newegg. “It will strengthen our e-commerce marketplace platform and strengthen our value chain. That’s very exciting.” East West Bank has been Newegg’s financial partner for nearly a decade. Chow finds the Bank’s understanding of the e-commerce industry unparalleled. “East West Bank understands our business. They know what we are,” Chow said. “I haven’t seen any company that knows our business better. They really understand the e-commerce sector, which is why they give us such good support.” Newegg specializes in high-quality technology products and electronics. Known for its customer loyalty, the company’s EggPoints program recently received the highest ranking in Newsweek’s home goods-consumer electronics category. EggPoints’ strong quality and fast delivery have helped build a devoted customer base. “We are market leaders. We are known around the world for high product quality and the variety of products we sell,” Chow said. “We have excellent customer service and on-time deliveries, in addition to various areas of support that we give our suppliers.” East West Bank understands our business. They really understand the e-commerce sector, which is why they give us such good support. ~Anthony Chow, Newegg CEO With a proprietary warehouse management system, Newegg has been able to fulfill 99% of its U.S. orders within the same day of purchase. It now also support third-party vendors. When customers of those vendors purchase products on the company’s website or a third-party sales channel, Newegg helps those vendors handle the entire end-to-end order fulfillment and shipping process all the way to their customers. With exciting new services and a continued commitment to quality products, Newegg continues to set the standard. 10 E A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T 13 Staffing Up in a New Labor Market M A D I S O N R E S O U R C E F U N D I N G Staffing agencies are a vital part of the American economy, and New Hampshire-based Madison Resource Funding has the industry expertise and logistical know-how to help its clients thrive. Whether servicing a start-up, established or growing staffing firm, Madison Resource Funding provides backend services like payroll processing, billing, collections, funding and financial analytics. While it operates like a small business, it has immense capabilities and serves the needs of very large agencies. Currently, it serves almost 200 staffing entities in the United States and Canada. Its extensive day-to-day support and industry knowledge ensure its clients can continue to operate smoothly with seamless backend logistics. As the workforce continues to shift, Madison Resource Funding’s business has increased. In late 2020, the firm sought a new bank to meet its vast and complex needs. Because it processes payroll for numerous staffing firms, its banking needs are transactionally intensive, requiring daily communication and coordination. It was looking for a bank that could ensure a smooth process across the board. “Working with East West Bank is an actual partnership as opposed to a strict business relationship. We work together to talk through what would work best and come up with the solutions from there,” said Michelle McCowan, Corporate Controller at Madison Resource Funding. Working with East West Bank is an actual partnership as opposed to a sort of strict business relationship. ~Michelle McCowan, Madison Resource Funding Corporate Controller Madison Resource Funding’s team coordinates with East West Bank’s staff often to ensure its clients’ thousands of employees are paid, their withholding taxes are paid and filed, and other logistics. The company continues to enjoy the positive customer service and support from the East West Bank team, going above and beyond to help it meet its clients’ needs. 1212 12 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT151515 Honoring Film History and New Technology A P P L E T O W E R T H E AT R E Have you ever bought a smartphone in an opera house? Thanks to the meticulous restoration of the Tower Theatre in Los Angeles’ historic Broadway Theater District, visitors are now stepping back in time while selecting their technology devices of the future. Built in 1927, the Baroque Revival-style Tower Theatre was inspired by the Paris Opera House. The Delijani family, with support from East West Bank, returned the theater to its former glory and it now serves as a flagship store for Apple, giving customers a one- of-a-kind retail experience. Since re-opening in June 2021, it has been met with accolades from customers and preservationists alike. Shahram Delijani credits East West Bank with cultivating a personal relationship with the team, providing creative freedom and needed support. “It’s not every day that a client knows the Chairman and Chief Executive Officer of the bank and has a respectful and dynamic relationship with them,” said Delijani. The restoration included everything from environmental remediation to seismically retrofitting the building. The Delijani family’s next project with East West Bank involves façade improvements of several buildings—including two additional theaters—from the 1920s and 1930s that the family owns in the neighborhood. “Over the last three decades, our focus has been on the interiors. Now, we’re bringing our efforts to restoring the exteriors,” Delijani said. “To take a whole block back to what it looked like in the 1930s is exciting.” For lovers of architecture, technology and film, these stunning preservations of Los Angeles history are not to be missed. It’s not every day that a client knows the Chairman and Chief Executive Officer of the bank and has a respectful and dynamic relationship with them. ~Shahram Delijani, Apple Tower Theatre Owner 14 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T 17 East West Bank has been a valuable partner since our early days in San Jose. Their support, professionalism and strong customer service make them an integral part of the success of our office. ~Ganesh V. Iyer, NIO Global CIO Luxury Cars for a Cleaner Future N I O With luxury, state-of-the art electric vehicles (EVs) optimized for a fun driving experience, NIO is proof that saving the planet is anything but boring. NIO, whose Chinese name translates to “Blue Sky Coming,” specializes in premium EVs with state-of-the-art technologies like autonomous driving and artificial intelligence (AI). By focusing on the user experience, NIO’s beautiful designs match its name. “Our mission is to shape a joyful lifestyle by offering premium smart electric vehicles,” said Ganesh V. Iyer, Global CIO with NIO. “Improved smart electric car technologies, coupled with a better car ownership experience, will increase electric car adoption, leading to a more sustainable future.” NIO’s focus on the driving experience is a paradigm shift, ensuring environmentalism via EVs does not occur at the expense of the driving experience. A start-up, NIO’s relationship with East West Bank helped implement its vision. “All businesses must overcome challenges as they establish a business presence while developing unique innovations, some of which are financial,” Iyer said. “East West Bank always believed in us and our success and supported us throughout achieving our current success.” The company now has offices around the world. Its San Jose, California, Research and Innovation Center has more than 200 people, ensuring NIO continues to innovate in fields like AI, digital systems and autonomous driving hardware. “East West Bank has been a valuable partner since our early days in San Jose,” Iyer said. “Their support, professionalism and strong customer service make them an integral part of the success of our office.” With a solid banking relationship, an expanding global business and increased demand, NIO’s blue sky looks endless. 16 16 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORTAn Immersive Art Experience H A U S E R & W I R T H G A L L E R Y Named Time Out L.A.’s “Best Gallery in Los Angeles” in 2021, Hauser & Wirth’s Los Angeles gallery reflects the city’s vibrant culture and diversity. “Hauser & Wirth opened its Los Angeles location in 2016 in the Arts District,” said Marc Payot, Hauser & Wirth’s Partner and President. “The art gallery creates a vibrant communal space that links art and architecture with a dynamic events program.” To inspire and engage the city’s diverse populations, the gallery collaborates with numerous cultural organizations on programs. In addition, the property’s components provide an immersive art experience, including The Gallery Shop, the bookstore ARTBOOK and the onsite restaurant Manuela, which features art the gallery curates. The Hauser & Wirth team lauds East West Bank’s industry knowledge, which has helped the Bank provide support quickly. “East West Bank’s team is nimble and takes the time to understand the business while acting swiftly,” Payot said. “Their customer service is second to none.” The gallery looks forward to a continued relationship with the Bank, helping the company provide memorable, art-infused experiences. East West Bank’s team is nimble and takes the time to understand the business while acting swiftly. ~Marc Payot, Hauser & Wirth’s Partner and President © Hauser & Wirth Los Angeles, 2019. Photo: Elon Schoenholz 18 18 1818 19 19 © Glen Wilson / @dubarts Using Art to Empower the Community L A U R E N H A L S E Y Los Angeles-based artist Lauren Halsey is celebrated world-wide for her authentic depictions of people and places from within her community. Her influences include architecture, afrofuturism, Parliament Funkadelic’s funk operas and Ancient Egypt, among others. As a 2021 recipient of the Gwendolyn Knight and Jacob Lawrence Prize for outstanding contemporary artists, Halsey will be featured in a solo exhibition at the Seattle Art Museum in 2022. “[The Seattle Art Museum exhibit] remixes what we think we know of Ancient Egypt. They’re tableaux that are permanent records of people, narratives and communities,” Halsey said. “I’ve turned this on its head to archive my neighborhood in a visual way.” Halsey is as passionate about creating art as she is about empowering youth in her neighborhood. With support from East West Bank, Halsey opened the Summaeverythang Community Center adjacent to her art studio, which provides food distribution, homework help, basketball and art programs for youth in the South Los Angeles neighborhood her family has lived in since the 1920s. “[Working with East West Bank] has been empowering, especially as a young Black woman with very large, ambitious, rigorous and intense goals,” said Halsey. “Working alongside the community with folks that can go there with me, that’s the most special partnership I’ve had.” Halsey’s team at the Summaeverythang Community Center comprises childhood friends and neighbors, working to help local youth succeed while facilitating their creative expression. [Working with East West Bank] has been empowering, especially as a young Black woman with very large, ambitious, rigorous and intense goals. ~Lauren Halsey, Artist EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT C O M M U N I T Y S P O T L I G H T 21 Bringing The Oscars Experience to the People A C A D E M Y M U S E U M O F M O T I O N P I C T U R E S Film brings people together, connecting with East West Bank is a natural fit for the Museum. our senses and emotions to teach us about the The Bank sponsors The Oscars Experience in the universal human condition. East West Bank Gallery, which allows visitors to The Academy Museum of Motion Pictures (Academy Museum) immerses the public into film, connecting museumgoers from around the world to other generations, cultures and accept an Oscar as if they were onstage at the Academy Awards. In addition, Bank Chairman & CEO Dominic Ng has a leadership role on the Academy Museum Board of Trustees. He currently chairs the Collections and Exhibitions viewpoints. Since opening in 2021, the museum has had an overwhelmingly positive response Committee. from the public. “People are blown away,” said Bill Kramer, Director and President of the Academy Museum. “East West Bank’s involvement at the leadership level has helped us attract diverse partners from around the world,” said Kramer. “We’re so proud of, and grateful for, our partnership with East “Guests are staying for hours longer than we anticipated. We’re reminding people why movies West Bank.” are so important to us.” The museum’s inclusive philosophy is reflected A financial institution dedicated to connecting communities and amplifying diverse voices, in its programming with Japan’s Hayao Miyazaki’s work in its first temporary exhibition. As film evolves, the Academy Museum’s exhibits will too, creating a memorable archive for generations. East West Bank’s involvement at the leadership level has helped us attract diverse partners from around the world. We’re so proud of, and grateful for, our partnership with East West Bank. ~Bill Kramer, Academy Museum Director and President 2020 EAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T C O M M I T T E D T O O U R C O M M U N I T I E S In many respects, 2021 was a year with as much uncertainty as 2020. As COVID-19 vaccines rolled out, communities faced fluctuating public health protocols in the wake of new variants, creating an uncertain financial climate rivaled only by 2020. These public health issues were compounded by continued supply chain challenges worldwide. In the face of these uncertainties, East West Bank remained steadfast in supporting the communities we serve through charitable giving and supporting our nonprofit partners. Here’s a look at some of the ways we remained nimble in supporting the community during another unpredictable year. T H E U N I T E D WAY O F G R E AT E R L O S A N G E L E S Commemorating 25 years of collaboration East West Bank is proud to have a 25-year partnership with The United Way of Greater Los Angeles. Since 1996, the Bank has worked together with United Way, supporting its mission to advance health, education and financial stability around the world. This spirit of giving and volunteerism aligns with the Bank’s work. Over the 25-year partnership, the Bank has raised more than $13.6 million for The United Way. Bank team members also fundraise and participate annually in WalkUnitedLA, a 5k walk/run hosted by The United Way of Greater Los Angeles and the Los Angeles Rams to support housing stability, access to education and economic mobility. It is a privilege to be a trusted—and longstanding—philanthropic partner. 22 22 23 S A N G A B R I E L VA L L E Y H A B I TAT F O R H U M A N I T Y Building Pasadena’s First Accessory Dwelling Unit East West Bank team members partnered with the San Gabriel Valley Habitat for Humanity, the City of Pasadena, Pasadena Community Foundation and Union Station Homeless Services to help construct the City of Pasadena’s first accessory dwelling unit (ADU), a separate living area adjacent to an existing home. This unit will serve as a supportive housing unit for those coming out of homelessness, providing individuals with support services and assistance to break the cycle of homelessness. P R O M O T I N G T O L E R A N C E B Y F I G H T I N G H AT E Combatting Racism and Intolerance Against Asian Americans and Pacific Islanders In 2021, Asian American and Pacific Islander (AAPI) communities experienced an increase in anti-Asian sentiment and violence. East West Bank has a long- standing commitment to supporting anti-discrimination and organizations leading the fight against AAPI intolerance. The East West Bank Foundation contributed nearly $500,000 to organizations such as Stop AAPI Hate, Asian Americans Advancing Justice and the Asian Pacific American Leadership Foundation, among others. In addition to direct contributions, the Bank played a leadership role in bringing national awareness on how to address and respond to hate in our communities. S U P P O R T I N G F I R S T R E S P O N D E R S Honoring Those Who Keep Us Safe East West Bank honored the City of Pasadena’s first responders at a Public Safety and Community Engagement function at the Bank’s headquarters. In addition to contributing to the Pasadena Police Foundation and the Pasadena Fire Department’s designated charity, 809 Fight 4 Awareness, East West Bank celebrated the hard-working men and women who make our communities safe. EAST WEST BANCORP 2021 ANNUAL REPORTE A S T W E S T B A N CO R P 2 0 2 1 A N N U A L R E P O R T S U M M A R Y O F S E L E C T E D F I N A N C I A L I N F O R M AT I O N 25 B O A R D O F D I R E C T O R S Dominic Ng Chairman and Chief Executive Officer Rudolph I. Estrada Lead Director Chief Executive Officer Estradagy Business Advisors, LLC Molly Campbell Former Director Port Department Port Authority of New York & New Jersey Archana Deskus Senior Vice President and Chief Information Officer Intel Corporation Jack C. Liu, Esq. Senior Attorney Alliance International Law Offices Manuel P. Alvarez Founding Principal BridgeCounsel Strategies LLC Iris S. Chan Chief Executive Officer Ameriway Inc. Paul H. Irving Senior Fellow Milken Institute Lester M. Sussman Retired Partner Deloitte & Touche 24 ($ in millions, except per share data) Summary of operations 2017 2018 2019 2020 2021 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 average assets Return on average equity $1,185 $506 $3.47 $0.80 $37,122 $29,054 $32,220 $3,842 3.48% 1.41% 13.7% $1,387 $704 $4.81 $0.86 $41,042 $32,385 $35,440 $4,424 3.78% 1.83% 17.0% $1,468 $674 $4.61 $1.06 $44,196 $34,779 $37,324 $5,018 3.64% 1.59% 14.2% $1,377 $568 $3.97 $1.10 $52,157 $38,393 $44,863 $5,269 2.98% 1.16% 11.2% $1,532 $873 $6.10 $1.32 $60,871 $41,695 $53,350 $5,838 2.72% 1.47% 15.7% *Includes held-for-sale as of December 31, 2017. Total Loans ($ in billions) Total Deposits ($ in billions) Total Assets ($ in billions) 7 % C A G R * $34.8 $32.4 $29.1 $41.7 $38.4 1 % C A G R * 1 $53.4 $44.9 $35.4 $37.3 $32.2 1 0 % C A G R * $52.2 $60.9 $44.2 $41.0 $37.1 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 *CAGR = 5-year compound annual growth rate, December 31, 2016 to December 31, 2021. Capital Strength EWBC 5-Year Stock Performance Basel III Fully Phased-in Minimum Regulatory Requirements High Year-end Low EWBC 12.31.21 12.8% 12.8% 14.1% $100 $87.77 $79.02 $50.49 $73.98 $43.53 $40.05 $63.92 $60.83 $48.07 $56.09 $48.70 $37.69 $51.88 $50.66 $22.55 10.5% 9.0% 8.5% 7.0% 4.0% $80 $60 $40 $20 Tier 1 leverage capital ratio CET1 capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio 2017 2018 2019 2020 2021 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT2 0 2 1 F I N A N C I A L O V E R V I E W C O N S O L I D AT E D S TAT E M E N T O F I N C O M E C O N S O L I D AT E D B A L A N C E S H E E T As of December 31 ($ in millions, except shares) ASSETS Cash and cash equivalents Interest-bearing deposits with banks Assets purchased under resale agreements (“resale agreements”) Securities: Available-for-sale (“AFS”) debt securities, at fair value Restricted equity securities, at cost Loans held-for-sale Loans held-for-investment (net of allowance for loan losses of $542 in 2021 and $620 in 2020) Investments in qualified affordable housing partnerships, net Investments in tax credit and other investments, net Premises and equipment, net Goodwill Operating lease right-of-use assets Other assets TOTAL ASSETS LIABILITIES Deposits: Noninterest-bearing Interest-bearing Total deposits Short-term borrowings Federal Home Loan Bank (“FHLB”) advances Assets sold under repurchase agreements (“repurchase agreements”) Long-term debt and finance lease liabilities Operating lease liabilities Accrued expenses and other liabilities Total liabilities STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 200,000,000 shares authorized; 167,790,645 and 167,240,600 shares issued in 2021 and 2020, respectively Additional paid-in capital Retained earnings Treasury stock, at cost - 25,882,691 shares in 2021 and 25,675,371 shares in 2020 Accumulated other comprehensive (loss) income net of tax Total stockholders’ equity 2021 2020 $3,913 736 2,354 9,965 77 1 41,152 290 339 97 466 99 $4,018 810 1,460 5,545 83 2 37,771 214 266 103 466 95 1,382 $60,871 1,324 $52,157 $22,845 30,505 53,350 $16,298 28,565 44,863 — 249 300 152 106 876 21 652 300 152 103 797 55,033 46,888 — 1,894 4,684 (650) (90) 5,838 — 1,858 4,001 (634) 44 5,269 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $60,871 $52,157 26 Year ended December 31 ($ in millions, except per share data) INTEREST AND DIVIDEND INCOME Loans receivable, including fees AFS debt securities Resale agreements Restricted equity securities Interest-bearing cash and deposits with banks Total interest and dividend income INTEREST EXPENSE Deposits Short-term borrowings FHLB advances Repurchase agreements Long-term debt and finance lease liabilities Total interest expense Net interest income before (reversal of) provision for credit losses (Reversal of) provision for credit losses Net interest income after (reversal of) provision for credit losses NONINTEREST INCOME Lending fees Deposit account fees Interest rate contracts and other derivative income Foreign exchange income Wealth management fees Net gains on sales of loans Net gains on sales of AFS debt securities Other investment income Other income Total noninterest income NONINTEREST EXPENSE Compensation and employee benefits Occupancy and equipment expense Deposit insurance premiums and regulatory assessments Deposit account expense Data processing Computer software expense Consulting expense Legal expense Other operating expense Amortization of tax credit and other investments Repurchase agreements’ extinguishment cost Total noninterest expense Income before income taxes Income tax expense NET INCOME EARNINGS PER SHARE Basic Diluted 27 2021 2020 $1,425 144 32 2 16 1,619 69 — 7 8 3 87 1,532 (35) 1,567 78 71 23 49 26 9 1 17 12 286 434 63 18 16 16 31 7 8 82 122 — 797 1,056 183 $873 $6.16 $6.10 $1,464 83 21 2 25 1,595 185 1 14 12 6 218 1,377 210 1,167 75 48 32 22 17 4 12 11 14 235 404 66 15 14 17 29 5 8 79 70 9 716 686 118 $568 $3.99 $3.97 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORTI N V E S T O R I N F O R M AT I O N C O V E R A R T C O N C E P T 29 Water is the fundamental life force of civilization, and whether calm or rough, it is always awe- inspiring. The 2021 Annual Report cover design builds on the duality of water as a metaphor for the year’s unpredictability. Like the cover’s visual depiction of water’s ebb and flow, 2021 brought numerous unforeseen challenges to communities the Bank serves. These waves of uncertainty rippled throughout 2021. Despite this, East West Bank remained a steadfast, anchoring force for clients, helping them rise above challenges and thrive. The placement of the Bank’s logo in the cover design is anchored in strength, demonstrating the Bank’s unyielding commitment to helping clients through the year’s unprecedented storms. The undulating wave motif in the design represents the Bank’s ability to stay flexible—yet ultimately remain powerful. Like a wave, we leveraged our strength and fluidity to provide support for clients and helped many clients achieve economic success. The cover design further underscores the Bank’s adaptability and resilience during a challenging year through movement, abstract dot patterns and subtle gradients of blue. In many Asian cultures, gratitude can be expressed by paying tribute to the life-giving water source. This is encapsulated by the Chinese characters: or “Think of the Source When You Drink.” The Bank expresses gratitude to staff and customers through this design. 飮水思源 Transfer Agent and Registrar Stockholders with inquiries about accounts, lost stock certificates or changes of address may contact the Computershare customer service department: Computershare 462 South 4th St., Suite 1600 Louisville, KY 40202 Toll-free within the U.S: 877.254.8651 International callers: 201.680.6578 (available 24 hours a day) Financial Information and Mailings The company’s annual reports on Form 10-K, quarterly financial results and other financial information may be obtained by writing or calling: East West Bancorp, Inc. Investor Relations 135 N. Los Robles Ave., 7th Floor Pasadena, CA 91101 626.768.6000 To receive company news releases via email, please contact Investor Relations at the telephone number or address above or sign up at www.eastwestbank.com/investors. Annual Meeting The 2022 Annual Meeting of Stockholders will be held virtually at 2 p.m. Pacific Time on May 26, 2022. Formal notice of the meeting with a proxy card and proxy statement is being mailed to all stockholders of record as of April 1, 2022. The proxy statement, annual report on Form 10-K and proxy card are available at www.eastwestbank.com/annual. Independent Registered Public Accounting Firm KPMG LLP Number of Shares Outstanding at December 31, 2021 141,907,954 Exchange NASDAQ: EWBC 28 EAST WEST BANCORP 2021 ANNUAL REPORTEAST WEST BANCORP 2021 ANNUAL REPORT30 Corporate Headquarters 135 N. Los Robles Ave., Pasadena, CA 91101 626.768.6000 eastwestbank.com Back Cover EAST WEST BANCORP 2021 ANNUAL REPORT

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