EWBC

Page Overview 63 Financial Review 64 Results of Operations 66 Net Interest Income 66 Noninterest Income 72 Noninterest Expense 73 Income Taxes 74 Operating Segment Results 74 Balance Sheet Analysis 78 Debt Securities 78 Loan Portfolio 80 Foreign Outstandings 86 Deposits 87 Capital 88 Regulatory Capital and Ratios 89 Risk Management 89 Credit Risk Management 90 Liquidity Risk Management 93 Market Risk Management 96 Critical Accounting Policies and Estimates 101 Reconciliation of GAAP to Non-GAAP Financial Measures 101 62 Overview The following discussion provides information about the results of operations, financial condition, liquidity and capital resources of East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company,” “we,” “our” or “EWBC”) and its subsidiaries, including its subsidiary bank, East West Bank and its subsidiaries (referred to herein as “East West Bank” or the “Bank”). This information is intended to facilitate the understanding and assessment of significant changes and trends related to the Company’s results of operations and financial condition. This discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the accompanying notes presented elsewhere in this Quarterly Report on Form 10-Q (this “Form 10-Q”), and the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 27, 2026 (the “Company’s 2025 Form 10-K”). Organization and Strategy East West is a bank holding company incorporated in Delaware on August 26, 1998, and is registered under the Bank Holding Company Act of 1956, as amended. The Company commenced business on December 30, 1998 when, pursuant to a reorganization, it acquired all of the voting stock of the Bank, which became its principal asset. The Bank is an independent commercial bank headquartered in California that focuses on the financial service needs of individuals and businesses that operate in both the U.S. and Asia. Through over 110 locations in the U.S. and Asia, the Company provides a full range of consumer and commercial products and services through the following three business segments: (1) Consumer and Business Banking and (2) Commercial Banking, with the remaining operations recorded in (3) Treasury and Other. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. We are committed to enhancing long-term shareholder value by growing loans, deposits and revenue, improving profitability, and investing for the future while managing risks, expenses and capital. Our business model is built on customer loyalty and engagement, understanding our customers’ financial goals, and meeting our customers’ financial needs through our diverse products and services. We expect our relationship-focused business model to continue generating organic growth from existing customers and to expand our targeted customer bases. As of June 30, 2026, the Company had $84.8 billion in total assets and approximately 3,500 full-time equivalent employees. For additional information on our strategy, and the products and services provided by the Bank, see Item 1. Business — Organization and Banking Services in the Company’s 2025 Form 10-K. Current Developments Economic Developments Evolving geopolitical uncertainties, including recent developments in the Middle East and ongoing shifts in global trade policies and tariffs, continue to create uncertainty regarding inflation, prices and potential supply chain disruptions. At its most recent meeting, the Federal Reserve maintained the target rate of the federal funds rate, reflecting a cautious stance as it continues to balance economic uncertainty, persistent inflationary pressures and continued strength in the labor market. These conditions may contribute to market volatility and influence the pace of inflation and economic growth. The U.S. economy continues to expand at a moderate pace, with Federal Reserve projections indicating GDP growth of 2% and inflation expected to gradually moderate. Commercial and consumer loan demand remains solid, supported by healthy consumer spending and business investment. The Company continues to monitor changes in the economic, regulatory and banking environment and their potential impacts on its business and customers. Further discussion of the potential impacts on the Company’s business due to the economic environment has been provided in Item 1A. — Risk Factors — Risks Related to Geographic and Political Uncertainties and — Risks Related to Financial Matters in the Company’s 2025 Form 10-K. Regulatory Updates In March 2026, the federal banking agencies issued proposed revisions to the U.S. regulatory capital framework that would modify certain aspects of the standardized approach to risk-based capital treatment of certain exposure categories that are material to the Company. The proposed changes address the definition of capital, the calculation of certain risk-weighted assets and future indexing of certain dollar-based thresholds. The Company has been monitoring these proposals and assessing their potential impacts on its regulatory capital position. 63 In June 2026, the Federal Deposit Insurance Corporation (“FDIC”) issued two proposals that would modify certain requirements applicable to the Bank. The first would streamline resolution planning requirements for insured depository institutions by, among other things, increasing the applicability threshold to institutions with $100 billion or more in total assets, eliminating the need for institutions to provide a strategy for their own resolution and annual interim resolution plan supplements, and removing the FDIC’s ability to deem resolution plans, which would be renamed “resolution submissions,” not credible. The second proposal would decrease initial base deposit insurance assessment rates for institutions with total assets of $30 billion or more, including the Bank, by one basis point (“bp”). This proposal would provide an additional downward adjustment of 0.5 bp to such an institution’s assessment rate if the institution successfully completed a virtual data room testing exercise and a further downward adjustment of 0.5 bp if the institution provided the FDIC with temporary access to certain data service providers and/or internal data systems. We are evaluating the potential impact of these proposals on EWBC and the Bank. In June 2026, the California Air Resources Board announced a proposed deferral of the first-year initial reporting deadline under SB 253 for Scope 1 and Scope 2 greenhouse gas emissions under SB 253 from August 10, 2026 to November 10, 2026. The Company is monitoring these developments, including potential changes to reporting requirements, and evaluating their impact on its disclosures, processes, and controls. Financial Review Three Months Ended June 30, Six Months Ended June 30, ($ and shares in thousands, except per share, and ratio data) 2026 2025 2026 2025 Summary of operations: Net interest income before provision for credit losses $ 684,651 $ 617,074 $ 1,355,844 $ 1,217,275 Noninterest income 106,492 86,178 209,048 178,280 Total revenue 791,143 703,252 1,564,892 1,395,555 Provision for credit losses 33,000 45,000 69,000 94,000 Noninterest expense 290,622 256,020 570,936 508,168 Income before income taxes 467,521 402,232 924,956 793,387 Income tax expense 103,821 91,979 203,460 192,864 Net income $ 363,700 $ 310,253 $ 721,496 $ 600,523 Per share: Basic earnings $ 2.65 $ 2.25 $ 5.24 $ 4.35 Diluted earnings $ 2.63 $ 2.24 $ 5.21 $ 4.32 Dividends declared $ 0.80 $ 0.60 $ 1.60 $ 1.20 Weighted-average number of shares outstanding: Basic 137,450 137,818 137,757 138,009 Diluted 138,301 138,789 138,568 139,058 Performance metrics: Return on average assets (“ROA”) 1.75 % 1.62 % 1.77 % 1.59 % Return on average common equity (“ROAE”) 16.01 % 15.42 % 16.02 % 15.19 % Return on average tangible common equity (“ROATCE”) (1) 16.88 % 16.39 % 16.90 % 16.16 % Common dividend payout ratio 30.54 % 26.99 % 30.85 % 27.95 % Net interest margin 3.43 % 3.35 % 3.46 % 3.35 % Efficiency ratio (2) 36.73 % 36.41 % 36.48 % 36.41 % At period end: June 30, 2026 December 31, 2025 Total assets $ 84,763,472 $ 80,434,997 Total loans $ 58,981,365 $ 56,899,148 Total deposits $ 70,092,693 $ 67,082,701 Common shares outstanding at period-end 137,011 137,579 Book value per share $ 67.48 $ 64.68 Tangible book value per share (1) $ 64.06 $ 61.27 Tangible common equity (“TCE”) ratio (1) 10.41 % 10.54 % (1)For additional information regarding the reconciliation of these non-U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures, refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q. (2)Efficiency ratio is calculated as noninterest expense divided by total revenue. 64 The Company’s net income for the second quarter and first half of 2026 was $364 million and $721 million, respectively, which increased $53 million or 17%, and $121 million or 20%, respectively, from the same prior year periods. The year-over-year increases were primarily driven by higher net interest income before provision for credit losses, increased noninterest income, and lower provision for credit losses, partially offset by higher noninterest expense. Noteworthy aspects of the Company’s performance for the second quarter and first half of 2026 included: •Net interest income and net interest margin. Second quarter 2026 net interest income before provision for credit losses was $685 million, an increase of $68 million or 11% from the second quarter of 2025. Second quarter 2026 net interest margin was 3.43% up 8 bps from the prior-year quarter. For the first half of 2026, net interest income before the provision for credit losses totaled $1.4 billion, an increase of $139 million or 11% compared with the first half of 2025. Net interest margin was 3.46% for the first half of 2026, an increase of 11 bps year over year. •Earnings per share growth. Second quarter 2026 basic and diluted earnings per share (“EPS”) each increased 18% to $2.65 and $2.63, respectively, compared with the second quarter of 2025. For the first half of 2026, basic EPS increased 20% to $5.24, while diluted EPS increased 21% to $5.21, compared with the first half of 2025. •Profitability ratios. Second quarter 2026 ROA, ROAE and ROATCE were 1.75%, 16.01% and 16.88%, respectively, representing year-over-year increases of 13 bps, 59 bps and 49 bps, respectively. For the first half of 2026, ROA, ROAE and ROATCE were 1.77%, 16.02% and 16.90%, respectively, up 18 bps, 83 bps and 74 bps, respectively, from the same period in 2025. ROATCE is a non-GAAP financial measure. For additional information regarding the reconciliation of non-GAAP financial measures, refer to Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q. •Efficiency ratios. Second quarter 2026 efficiency ratio was 36.73%, compared with 36.41% in the second quarter of 2025. For the first half of 2026, the efficiency ratio was 36.48%, compared with 36.41% in the prior-year period. •Asset growth. Total assets reached $84.8 billion as of June 30, 2026, an increase of $4.3 billion from December 31, 2025, primarily driven by a $2.1 billion or 4% increase in net loans held-for-investment and a $1.4 billion or 10% increase in available-for-sale (“AFS”) debt securities. •Deposit growth. Total deposits were $70.1 billion as of June 30, 2026, an increase of $3.0 billion or 4%, from December 31, 2025, primarily driven by growth in noninterest-bearing demand and money market deposits. •Capital levels. Stockholders’ equity was $9.2 billion as of June 30, 2026, up $347 million or 4%, from December 31, 2025. Book value per share of $67.48 as of June 30, 2026, increased $2.80 or 4% compared with December 31, 2025. Tangible book value per share of $64.06 as of June 30, 2026, increased $2.79 or 5% compared with December 31, 2025. Tangible book value per share is a non-GAAP financial measure. For additional details, see the reconciliation of non-GAAP financial measures presented under Item 2. MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-Q. 65 Results of Operations Net Interest Income The Company’s primary source of revenue is net interest income, which is the interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities. Net interest margin is the ratio of net interest income to average interest-earning assets. Net interest income and net interest margin are impacted by several factors, including changes in average balances and the composition of interest-earning assets and funding sources, market interest rate fluctuations and the slope of the yield curve, repricing characteristics and maturity of interest-earning assets and interest-bearing liabilities, the volume of noninterest-bearing sources of funds and asset quality. Net interest income and net interest margin for the second quarter and first half of 2026 increased year-over-year. These year-over-year increases primarily reflected lower interest-bearing deposit funding costs and increases in loans and AFS debt securities’ average balances, partially offset by lower yields on loans, interest-bearing cash and deposits with banks, and AFS debt securities. Average interest-earning assets were $80.1 billion for the second quarter of 2026, an increase of $6.2 billion or 8% from the second quarter of 2025. For the first half of 2026, average interest-earning assets were $79.0 billion, an increase of $5.7 billion or 8% from the first half of 2025. The year-over-year increases in average interest-earning assets primarily reflected loan growth and increases in AFS debt securities. The yield on average interest-earning assets for the second quarter of 2026 was 5.41%, a decrease of 34 bps from the second quarter of 2025. The yield on average interest-earning assets for the first half of 2026 was 5.45%, a decrease of 30 bps from the first half of 2025. These year-over-year decreases for both periods primarily reflected the impact of lower benchmark interest rates on the loan portfolio. 66 Average loan yields of 6.02% and 6.06% for the second quarter and first half of 2026, respectively, decreased 38 bps and 33 bps, respectively, compared with the prior year periods. The year-over-year decreases in the average loan yield for both periods primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates. Approximately 59% and 58% of loans held-for-investment were variable-rate as of June 30, 2026 and 2025, respectively. Deposits are an important source of funding for the Company. Average deposits were $68.7 billion and $68.1 billion for the second quarter and first half of 2026, respectively, which both increased $5.0 billion or 8% from the prior year comparative periods. The year-over-year increases for both periods were primarily driven by growth in demand, time and money market deposits. 67 Average noninterest-bearing deposits were $17.4 billion for the second quarter of 2026, a $2.2 billion or 15% increase from the second quarter of 2025. For the first half of 2026, average noninterest-bearing deposits were $17.1 billion, a $2.0 billion or 13% increase from the first half of 2025. The proportion of average noninterest-bearing deposits remained relatively stable year over year at 25% for both the second quarter and first half of 2026, compared with 24% in the same prior year periods. The average cost of deposits of 2.10% for the second quarter and 2.12% for the first half of 2026 decreased 42 bps and 41 bps, respectively, compared with the prior year periods. The average cost of interest-bearing deposits decreased 50 bps from the prior year periods to 2.81% for the second quarter of 2026 and 2.83% for the first half of 2026. These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs. The average cost of funds calculation includes deposits, Federal Home Loan Bank (“FHLB”) advances, securities sold under repurchase agreements (“repurchase agreements”), long-term debt, and short-term borrowings. The average cost of funds of 2.19% for the second quarter and 2.20% for the first half of 2026, both decreased 44 bps from the prior year periods. The year-over-year decreases were mainly driven by the decrease in the cost of deposits as discussed above. The Company utilizes various tools to manage interest rate risk. Refer to the Interest Rate Risk Management section of Item 2. MD&A — Risk Management — Market Risk Management in this Form 10-Q. 68 The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the second quarters of 2026 and 2025: Three Months Ended June 30, 2026 2025 ($ in thousands) Average Balance Interest Average Yield/Rate (1) Average Balance Interest Average Yield/Rate (1) ASSETS Interest-earning assets: Interest-bearing cash and deposits with banks $ 3,985,838 $ 31,216 3.14 % $ 3,699,036 $ 34,935 3.79 % Securities purchased under resale agreements (“resale agreements”) 425,000 1,624 1.53 % 425,000 1,624 1.53 % Debt securities: AFS (2)(3) 14,441,915 158,285 4.40 % 12,435,531 141,496 4.56 % Held-to-maturity (“HTM”) (2) 2,849,553 12,044 1.70 % 2,896,410 12,292 1.70 % Total debt securities (2) 17,291,468 170,329 3.95 % 15,331,941 153,788 4.02 % Loans: Commercial and industrial (“C&I”) (2) 19,452,052 304,621 6.28 % 17,363,095 303,791 7.02 % Commercial real estate (“CRE”) (2) 21,550,542 320,535 5.97 % 20,535,145 319,666 6.24 % Residential mortgage 17,173,833 248,541 5.80 % 16,336,054 241,666 5.93 % Other consumer 53,075 792 5.98 % 47,138 572 4.86 % Total loans (2)(4)(5) 58,229,502 874,489 6.02 % 54,281,432 865,695 6.40 % Restricted equity securities 157,737 3,165 8.05 % 165,716 2,957 7.16 % Total interest-earning assets $ 80,089,545 $ 1,080,823 5.41 % $ 73,903,125 $ 1,058,999 5.75 % Noninterest-earning assets: Cash and due from banks 311,337 350,343 Allowance for loan and lease losses (“ALLL”) (854,564) (745,121) Other assets 3,604,651 3,353,681 Total assets $ 83,150,969 $ 76,862,028 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest-bearing liabilities: Checking deposits $ 7,530,547 $ 37,692 2.01 % $ 7,597,103 $ 47,013 2.48 % Money market deposits 16,545,079 108,628 2.63 % 15,325,928 124,282 3.25 % Savings deposits 1,905,782 4,511 0.95 % 1,745,220 3,700 0.85 % Time deposits 25,353,592 208,591 3.30 % 23,894,775 225,593 3.79 % Total interest-bearing deposits 51,335,000 359,422 2.81 % 48,563,026 400,588 3.31 % Short-term borrowings and federal funds purchased 364 5 5.08 % 659 1 0.66 % FHLB advances 3,041,759 29,455 3.88 % 3,500,003 39,313 4.51 % Repurchase agreements 707,880 6,680 3.79 % 119,061 1,352 4.55 % Long-term debt and finance lease liabilities 35,480 610 6.89 % 35,811 671 7.52 % Total interest-bearing liabilities $ 55,120,483 $ 396,172 2.88 % $ 52,218,560 $ 441,925 3.39 % Noninterest-bearing liabilities and stockholders’ equity: Demand deposits 17,362,645 15,114,806 Accrued expenses and other liabilities 1,553,445 1,458,680 Stockholders’ equity 9,114,396 8,069,982 Total liabilities and stockholders’ equity $ 83,150,969 $ 76,862,028 Total deposits $ 68,697,645 $ 359,422 2.10 % $ 63,677,832 $ 400,588 2.52 % Interest rate spread 2.53 % 2.36 % Net interest income and net interest margin $ 684,651 3.43 % $ 617,074 3.35 % (1)Annualized. (2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis. (3)Includes the amortization of net premiums on AFS debt securities of $61 thousand and $10 million for the second quarters of 2026 and 2025, respectively. (4)Average balances include nonperforming loans and loans held-for-sale. (5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $8 million and $13 million for the second quarters of 2026 and 2025, respectively. 69 The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component for the first halves of 2026 and 2025: Six Months Ended June 30, 2026 2025 ($ in thousands) Average Balance Interest Average Yield/Rate (1) Average Balance Interest Average Yield/Rate (1) ASSETS Interest-earning assets: Interest-bearing cash and deposits with banks $ 3,926,059 $ 61,067 3.14 % $ 3,906,499 $ 74,072 3.82 % Resale agreements 425,000 3,249 1.54 % 425,000 3,234 1.53 % Debt securities: AFS (2)(3) 14,027,873 306,449 4.41 % 12,102,837 277,015 4.62 % HTM (2) 2,855,444 24,058 1.70 % 2,902,373 24,557 1.71 % Total debt securities (2) 16,883,317 330,507 3.95 % 15,005,210 301,572 4.05 % Loans: C&I (2) 19,104,391 601,936 6.35 % 17,115,622 597,205 7.04 % CRE (2) 21,436,986 636,458 5.99 % 20,454,528 631,052 6.22 % Residential mortgage 17,051,635 493,425 5.84 % 16,193,678 476,557 5.93 % Other consumer 52,309 1,548 5.97 % 48,351 1,293 5.39 % Total loans (2)(4)(5) 57,645,321 1,733,367 6.06 % 53,812,179 1,706,107 6.39 % Restricted equity securities 154,478 8,143 10.63 % 165,540 5,816 7.08 % Total interest-earning assets $ 79,034,175 $ 2,136,333 5.45 % $ 73,314,428 $ 2,090,801 5.75 % Noninterest-earning assets: Cash and due from banks 380,395 347,797 Allowance for loan, lease, and securities’ losses (845,745) (730,768) Other assets 3,552,509 3,315,450 Total assets $ 82,121,334 $ 76,246,907 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest-bearing liabilities: Checking deposits $ 7,591,242 $ 77,137 2.05 % $ 7,672,963 $ 94,924 2.49 % Money market deposits 16,375,246 213,506 2.63 % 15,081,131 240,300 3.21 % Savings deposits 1,804,410 7,521 0.84 % 1,749,062 7,147 0.82 % Time deposits 25,233,524 416,670 3.33 % 23,547,978 450,198 3.86 % Total interest-bearing deposits 51,004,422 714,834 2.83 % 48,051,134 792,569 3.33 % Short-term borrowings and federal funds purchased 465 9 3.73 % 544 7 2.56 % FHLB advances 2,810,775 54,459 3.91 % 3,500,002 78,179 4.50 % Repurchase agreements 529,966 9,970 3.79 % 63,183 1,429 4.56 % Long-term debt and finance lease liabilities 35,523 1,217 6.91 % 35,864 1,342 7.55 % Total interest-bearing liabilities $ 54,381,151 $ 780,489 2.89 % $ 51,650,727 $ 873,526 3.41 % Noninterest-bearing liabilities and stockholders’ equity: Demand deposits 17,121,393 15,109,447 Accrued expenses and other liabilities 1,537,720 1,516,650 Stockholders’ equity 9,081,070 7,970,083 Total liabilities and stockholders’ equity $ 82,121,334 $ 76,246,907 Total deposits $ 68,125,815 $ 714,834 2.12 % $ 63,160,581 $ 792,569 2.53 % Interest rate spread 2.56 % 2.34 % Net interest income and net interest margin $ 1,355,844 3.46 % $ 1,217,275 3.35 % (1)Annualized. (2)Yields on tax-exempt securities and loans are not presented on a tax-equivalent basis. (3)Includes the amortization of net premiums of AFS debt securities of $1 million and $17 million for the first halves of 2026 and 2025, respectively. (4)Average balances include nonperforming loans and loans held-for-sale. (5)Loans include the accretion of net deferred loan fees and amortization of net premiums, which totaled $19 million and $26 million for the first halves of 2026 and 2025, respectively. 70 The following table summarizes the extent to which changes in (1) interest rates and (2) volume of average interest-earning assets and average interest-bearing liabilities affected the Company’s net interest income for the periods presented. The total change for each category of interest-earning assets and interest-bearing liabilities is segmented into changes attributable to variations in volume and yield/rate. Changes that are not solely due to either volume or yield/rate are allocated proportionally based on the absolute value of the change related to average volume and average yield/rate. Three Months Ended June 30, Six Months Ended June 30, 2026 vs. 2025 2026 vs. 2025 Changes Due to Changes Due to ($ in thousands) Total Change Volume Yield/Rate Total Change Volume Yield/Rate Interest-earning assets: Interest-bearing cash and deposits with banks $ (3,719) $ 2,564 $ (6,283) $ (13,005) $ 369 $ (13,374) Resale agreements — — — 15 — 15 Debt securities: AFS 16,789 22,146 (5,357) 29,434 42,501 (13,067) HTM (248) (198) (50) (499) (396) (103) Total debt securities 16,541 21,948 (5,407) 28,935 42,105 (13,170) Loans: C&I 830 34,500 (33,670) 4,731 65,724 (60,993) CRE 869 15,436 (14,567) 5,406 29,670 (24,264) Residential mortgage 6,875 12,204 (5,329) 16,868 24,928 (8,060) Other consumer 220 78 142 255 111 144 Total loans 8,794 62,218 (53,424) 27,260 120,433 (93,173) Restricted equity securities 208 (147) 355 2,327 (412) 2,739 Total interest and dividend income $ 21,824 $ 86,583 $ (64,759) $ 45,532 $ 162,495 $ (116,963) Interest-bearing liabilities: Checking deposits $ (9,321) $ (408) $ (8,913) $ (17,787) $ (1,001) $ (16,786) Money market deposits (15,654) 9,332 (24,986) (26,794) 19,418 (46,212) Savings deposits 811 358 453 374 229 145 Time deposits (17,002) 13,203 (30,205) (33,528) 30,712 (64,240) Total interest-bearing deposits (41,166) 22,485 (63,651) (77,735) 49,358 (127,093) Short-term borrowings and federal funds purchased 4 (1) 5 2 (1) 3 FHLB advances (9,858) (4,091) (5,767) (23,720) (14,175) (9,545) Repurchase agreements 5,328 5,594 (266) 8,541 8,821 (280) Long-term debt and finance lease liabilities (61) (6) (55) (125) (13) (112) Total interest expense $ (45,753) $ 23,981 $ (69,734) $ (93,037) $ 43,990 $ (137,027) Change in net interest income $ 67,577 $ 62,602 $ 4,975 $ 138,569 $ 118,505 $ 20,064 71 Noninterest Income The following table presents the components of noninterest income for the second quarters and first halves of 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 % Change 2026 2025 % Change Commercial and consumer deposit-related fees $ 31,621 $ 26,865 18 % $ 62,240 $ 53,940 15 % Lending and loan servicing fees 27,961 25,586 9 % 54,031 51,816 4 % Foreign exchange income 14,926 13,715 9 % 30,373 29,552 3 % Wealth management fees 19,461 10,725 81 % 41,721 24,404 71 % Customer derivative income and derivative mark-to-market adjustments: Customer derivative income 1,895 3,645 (48) % 6,490 9,184 (29) % Derivative mark-to-market and credit valuation adjustments (732) (1,444) (49) % 202 (2,914) NM Total customer derivative income and derivative mark-to-market adjustments 1,163 2,201 (47) % 6,692 6,270 7 % Net gains on AFS debt securities 2,931 746 293 % 3,547 877 304 % Other investment (loss) income (49) 678 NM 2,907 2,940 (1) % Other income 8,478 5,662 50 % 7,537 8,481 (11) % Total noninterest income $ 106,492 $ 86,178 24 % $ 209,048 $ 178,280 17 % Noninterest income as a percent of total revenue 13% 12% 13% 13% NM - Not meaningful. Noninterest income for the second quarter of 2026 was $106 million, an increase of $20 million or 24% compared with the second quarter of 2025. The year-over-year increase was primarily due to increases in wealth management fees, commercial and consumer deposit-related fees, other income, lending and loan servicing fees, and net gains on AFS debt securities. Noninterest income for the first half of 2026 was $209 million, an increase of $31 million or 17% compared with the first half of 2025. The year-over-year increase was primarily due to increases in wealth management fees, commercial and consumer deposit-related fees, and net gains on AFS debt securities. Commercial and consumer deposit-related fees were $32 million for the second quarter of 2026, an increase of $5 million or 18% compared with the second quarter of 2025. For the first half of 2026, commercial and consumer deposit-related fees were $62 million, an increase of $8 million or 15% compared with the first half of 2025. The year-over-year increases were primarily due to higher commercial customer activity. Lending and loan servicing fees were $28 million for the second quarter of 2026, an increase of $2 million or 9% compared with the second quarter of 2025. For the first half of 2026, lending and loan servicing fees were $54 million, an increase of $2 million or 4% compared with the first half of 2025. The year-over-year increases were primarily due to higher syndication fees. Wealth management fees were $19 million for the second quarter of 2026, an increase of $9 million or 81% compared with the second quarter of 2025. For the first half of 2026, wealth management fees were $42 million, an increase of $17 million or 71% compared with the first half of 2025. The year-over-year increases primarily reflected higher customer activity, including increased demand for wealth management products such as fixed-rate corporate bonds, as well as new customer acquisitions. Net gains on AFS debt securities of $3 million and $4 million, for the second quarter and first half of 2026, respectively, increased $2 million and $3 million, respectively, compared with the prior year periods. The year-over-year increases primarily reflected the sales of U.S. government agency residential mortgage-backed securities. 72 Other income was $8 million for the second quarter of 2026, an increase of $3 million or 50% compared with the second quarter of 2025. The year-over-year increase primarily reflected $3 million of increase in income from bank-owned life insurance policies, which offset the cost of the Company’s deferred compensation plan included in compensation and employee benefits expense. For the first half of 2026, other income was $8 million, a decrease of $1 million or 11% compared with the first half of 2025. The year-over-year decrease primarily reflected $5 million of lower of cost or market adjustments on loans held-for-sale recorded during the first half of 2026, partially offset by $4 million of increased income from bank-owned life insurance policies, as discussed above. Noninterest Expense The following table presents the components of noninterest expense for the second quarters and first halves of 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 % Change 2026 2025 % Change Compensation and employee benefits $ 172,543 $ 144,841 19 % $ 345,208 $ 291,276 19 % Occupancy and equipment expense 19,553 16,289 20 % 37,801 31,978 18 % Computer and software related expenses 15,433 13,446 15 % 30,180 26,760 13 % Deposit insurance premiums and regulatory assessments 10,268 9,133 12 % 19,127 19,518 (2) % Deposit account expense 8,906 9,348 (5) % 16,439 18,390 (11) % Other real estate owned (“OREO”) expense (income) 2,254 (493) NM 1,990 3,673 (46) % Other operating expense 38,869 37,220 4 % 75,411 74,595 1 % Amortization of tax credit and Community Reinvestment Act (“CRA”) investments 22,796 26,236 (13) % 44,780 41,978 7 % Total noninterest expense $ 290,622 $ 256,020 14 % $ 570,936 $ 508,168 12 % NM - Not meaningful. Noninterest expense was $291 million for the second quarter of 2026, an increase of $35 million or 14% compared with the second quarter of 2025. For the first half of 2026, noninterest expense was $571 million, an increase of $63 million or 12% compared with the first half of 2025. These year-over-year increases were primarily driven by higher compensation and employee benefits, occupancy and equipment expense, and computer and software related expenses. The increase for the second quarter also reflected higher OREO expense, partially offset by a decrease in amortization of tax credit and CRA investments. Compensation and employee benefits were $173 million for the second quarter of 2026, an increase of $28 million or 19% compared with the second quarter of 2025. For the first half of 2026, compensation and employee benefits were $345 million, an increase of $54 million or 19% compared with the first half of 2025. The year-over-year increases were primarily driven by higher incentive compensation, staffing growth, additional employer matching contributions under the Company’s 401(k) plan, and higher costs associated with the deferred compensation plan. Occupancy and equipment expense was $20 million for the second quarter of 2026, an increase of $3 million or 20% compared with the second quarter of 2025. For the first half of 2026, occupancy and equipment expense was $38 million, an increase of $6 million or 18% compared with the first half of 2025. The year-over-year increases were primarily driven by higher depreciation expense associated with new leasehold improvements and a building purchase made in the first quarter of 2026, and increased rental expense, partially offset by higher rental income. Computer and software related expenses were $15 million for the second quarter of 2026, an increase of $2 million or 15% compared with the second quarter of 2025. For the first half of 2026, computer and software related expense was $30 million, an increase of $3 million or 13% compared with the first half of 2025. The year-over-year increases were mainly attributable to higher software expenses resulting from continued investments in technology infrastructure to support the Company’s growth. 73 OREO expense was $2 million for the second quarter of 2026, a $3 million increase compared with the OREO income in the second quarter of 2025. The year-over-year increase was primarily due to a $2 million OREO write-down in the second quarter of 2026. For the first half of 2026, OREO expense was $2 million, a $2 million or 46% decrease compared with the first half of 2025. The year-over-year decrease primarily reflected higher gains on the sale of OREO properties. Amortization of tax credit and CRA investments was $23 million for the second quarter of 2026, a $3 million or 13% decrease compared with the second quarter of 2025. For the first half of 2026, amortization of tax credit and CRA investments was $45 million, a $3 million or 7% increase compared with the first half of 2025. The year-over-year changes were primarily due to the timing of tax credit investments that closed in a given period. Income Taxes The following table presents income before income taxes, income tax expense and the effective tax rate for the second quarters of 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 % Change 2026 2025 % Change Income before income taxes $ 467,521 $ 402,232 16 % $ 924,956 $ 793,387 17 % Income tax expense $ 103,821 $ 91,979 13 % $ 203,460 $ 192,864 5 % Effective tax rate 22.2 % 22.9 % 22.0 % 24.3 % Second quarter 2026 income tax expense was $104 million, and the effective tax rate was 22.2%, compared with second quarter 2025 income tax expense of $92 million and an effective tax rate of 22.9%. For the first half of 2026, income tax expense was $203 million, and the effective tax rate was 22.0%, compared with income tax expense of $193 million and an effective tax rate of 24.3% for the same period in 2025. The increase in income tax expense is primarily due to higher pre-tax income, partially offset by the release of a valuation allowance related to foreign tax credits in 2026 and the one-time revaluation of deferred tax assets recorded in 2025 due to the adoption of the California state tax apportionment in 2025. Operating Segment Results The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Treasury and Other. These segments are defined based on customer type, the channels through which customers are served, and the products and services provided. For a description of the Company’s internal management reporting process, including the methodology used to allocate costs among segments, see Note 13 — Business Segments to the Consolidated Financial Statements in this Form 10-Q. Segment net interest income represents the difference between interest earned on segment assets and interest incurred on segment liabilities, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process. Consumer and Business Banking The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other banking products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Additional banking products and services provided by this segment include wealth management, private banking, treasury management, interest rate risk hedging and foreign exchange services. 74 The following tables present financial information for the Consumer and Business Banking segment for the periods indicated: Three Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before provision for credit losses $ 274,251 $ 273,073 $ 1,178 0 % Noninterest income 38,205 27,729 10,476 38 % Total revenue before provision for credit losses 312,456 300,802 11,654 4 % Provision for credit losses 12,451 6,775 5,676 84 % Compensation and employee benefits 66,704 58,151 8,553 15 % Other noninterest expense 61,483 57,252 4,231 7 % Total noninterest expense 128,187 115,403 12,784 11 % Segment income before income taxes 171,818 178,624 (6,806) (4) % Income tax expense 48,150 50,329 (2,179) (4) % Segment net income $ 123,668 $ 128,295 $ (4,627) (4) % Average loans $ 21,451,804 $ 20,183,539 $ 1,268,265 6 % Average deposits $ 36,143,674 $ 32,750,578 $ 3,393,096 10 % Six Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before provision for credit losses $ 543,498 $ 542,806 $ 692 0 % Noninterest income 78,167 60,014 18,153 30 % Total revenue before provision for credit losses 621,665 602,820 18,845 3 % Provision for credit losses 21,636 14,460 7,176 50 % Compensation and employee benefits 136,800 120,115 16,685 14 % Other noninterest expense 123,488 114,444 9,044 8 % Total noninterest expense 260,288 234,559 25,729 11 % Segment income before income taxes 339,741 353,801 (14,060) (4) % Income tax expense 95,209 102,418 (7,209) (7) % Segment net income $ 244,532 $ 251,383 $ (6,851) (3) % Average loans $ 21,244,542 $ 19,974,077 $ 1,270,465 6 % Average deposits $ 35,599,069 $ 32,539,912 $ 3,059,157 9 % Consumer and Business Banking segment net income decreased $5 million or 4%, to $124 million for the second quarter of 2026, compared with the same period in 2025. This decrease was primarily attributable to a $9 million increase in compensation and employee benefits and a $6 million increase in provision for credit losses, partially offset by a $10 million increase in noninterest income. For the first half of 2026, Consumer and Business Banking segment net income decreased $7 million or 3%, to $245 million, compared with the same period in 2025. The decrease was primarily attributable to a $17 million increase in compensation and employee benefits, a $9 million increase in other noninterest expense, and a $7 million increase in provision for credit losses, partially offset by an $18 million increase in noninterest income. The increase in noninterest income for both the quarter and year-to-date periods was primarily due to increases in wealth management fees. The increase in the provision for credit losses in both periods was primarily driven by loan growth. The increase in compensation and employee benefits expense in both periods was primarily due to staffing growth and higher wealth management commissions, while the increase in other noninterest expense for the first half of 2026 was mainly driven by higher occupancy and equipment expense and increased allocations of corporate overhead. 75 Commercial Banking The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction finance, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance, equipment financing, and loan syndication. Commercial deposit products and other financial services include treasury management, foreign exchange services, and interest rate and commodity risk hedging. This segment also includes the Company’s international branch activities. The following tables present financial information for the Commercial Banking segment for the periods indicated: Three Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before provision for credit losses $ 258,824 $ 254,144 $ 4,680 2 % Noninterest income 55,560 49,751 5,809 12 % Total revenue before provision for credit losses 314,384 303,895 10,489 3 % Provision for credit losses 20,549 38,724 (18,175) (47) % Compensation and employee benefits 69,778 57,592 12,186 21 % Other noninterest expense 39,151 36,053 3,098 9 % Total noninterest expense 108,929 93,645 15,284 16 % Segment income before income taxes 184,906 171,526 13,380 8 % Income tax expense 51,724 48,319 3,405 7 % Segment net income $ 133,182 $ 123,207 $ 9,975 8 % Average loans $ 36,777,698 $ 33,767,859 $ 3,009,839 9 % Average deposits (1) $ 28,658,783 $ 26,315,823 $ 2,342,960 9 % Six Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before provision for credit losses $ 520,110 $ 507,145 $ 12,965 3 % Noninterest income 109,891 103,330 6,561 6 % Total revenue before provision for credit losses 630,001 610,475 19,526 3 % Provision for credit losses 47,556 79,503 (31,947) (40) % Compensation and employee benefits 144,622 118,779 25,843 22 % Other noninterest expense 75,621 78,371 (2,750) (4) % Total noninterest expense 220,243 197,150 23,093 12 % Segment income before income taxes 362,202 333,822 28,380 9 % Income tax expense 101,381 96,590 4,791 5 % Segment net income $ 260,821 $ 237,232 $ 23,589 10 % Average loans $ 36,400,779 $ 33,490,986 $ 2,909,793 9 % Average deposits (1) $ 28,374,828 $ 26,222,998 $ 2,151,830 8 % (1)Prior period balances have been reclassified for comparability due to a change in allocation methodology. 76 Commercial Banking segment net income increased $10 million or 8%, to $133 million for the second quarter of 2026, compared with the same period in 2025. The increase was primarily attributable to an $18 million decrease in the provision for credit losses, a $6 million increase in noninterest income and a $5 million increase in net interest income, partially offset by a $12 million increase in compensation and employee benefits, and a $3 million increase in other noninterest expense. For the first six months of 2026, Commercial Banking segment net income increased $24 million or 10%, to $261 million, compared with the same period in 2025. The increase was primarily attributable to a $32 million decrease in provision for credit losses, a $13 million increase in net interest income and a $7 million increase in noninterest income, partially offset by a $26 million increase in compensation and employee benefits expense. The increase in net interest income for both the quarter and year -to-date periods was primarily due to lower deposit interest expense resulting from the year-over-year decline in interest rates. The decrease in the provision for credit losses in both periods was primarily driven by a more stable macroeconomic outlook for C&I loans, compared with the prior year period. The $6 million increase in noninterest income for the second quarter 2026, compared with the same period in 2025, was primarily due to higher commercial deposit-related fees, lending and loan servicing fees and wealth management fees. The $7 million noninterest income increase for the first half of 2026, compared with the same period in 2025, was primarily due to higher commercial deposit-related fees and wealth management fees. The increase in compensation and employee benefits in both the quarter and year-to-date periods was primarily driven by higher incentive compensation and staffing growth. Treasury and Other Centralized functions, including the Company’s corporate treasury activities, tax credit investment activities, net FTP, eliminations of inter-segment amounts, and centrally managed departments, are aggregated within the Treasury and Other segment. The following tables present financial information for the Treasury and Other segment for the periods indicated: Three Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before reversal of credit losses (1) $ 151,576 $ 89,857 $ 61,719 69 % Noninterest income 12,727 8,698 4,029 46 % Total revenue before reversal of credit losses 164,303 98,555 65,748 67 % Reversal of credit losses — (499) 499 NM Compensation and employee benefits 36,061 29,098 6,963 24 % Other noninterest expense 17,445 17,874 (429) (2) % Total noninterest expense 53,506 46,972 6,534 14 % Segment income before income taxes 110,797 52,082 58,715 113 % Income tax expense (benefit) 3,947 (6,669) 10,616 NM Segment net income $ 106,850 $ 58,751 $ 48,099 82 % Average loans (2) $ — $ 330,034 $ (330,034) (100) % Average deposits (3) $ 3,895,188 $ 4,611,431 $ (716,243) (16) % 77 Six Months Ended June 30, Change from 2025 ($ in thousands) 2026 2025 $ % Net interest income before (reversal of) provision for credit losses (1) $ 292,236 $ 167,324 $ 124,912 75 % Noninterest income 20,990 14,936 6,054 41 % Total revenue before (reversal of) provision for credit losses 313,226 182,260 130,966 72 % (Reversal of) provision for credit losses (192) 37 (229) NM Compensation and employee benefits 63,786 52,382 11,404 22 % Other noninterest expense 26,619 24,077 2,542 11 % Total noninterest expense 90,405 76,459 13,946 18 % Segment income before income taxes 223,013 105,764 117,249 111 % Income tax expense (benefit) 6,870 (6,144) 13,014 NM Segment net income $ 216,143 $ 111,908 $ 104,235 93 % Average loans (2) $ — $ 347,116 $ (347,116) (100) % Average deposits (3) $ 4,151,918 $ 4,397,671 $ (245,753) (6) % NM — Not meaningful. (1)Primarily generated from the Company’s debt securities portfolio. Refer to Note 4 — Securities to the Consolidated Financial Statements and Item 2. MD&A — Balance Sheet Analysis — Debt Securities in this Form 10-Q for further information on the Company’s debt securities portfolio. (2)Reallocated to the Commercial Banking and Consumer and Business Banking segments effective first quarter of 2026. (3)Prior period balances have been reclassified for comparability due to a change in allocation methodology. Treasury and Other segment income before income taxes increased $59 million for the second quarter of 2026, compared with the same period in 2025. The increase was attributable to a $62 million increase in net interest income and a $4 million increase in noninterest income, partially offset by a $7 million increase in compensation and employee benefits expense. Treasury and Other segment income before income taxes increased $117 million for the first half of 2026, compared with the same period in 2025. The increase was primarily attributable to a $125 million increase in net interest income and a $6 million increase in noninterest income, partially offset by an $11 million increase in compensation and employee benefits expense. The increase in net interest income for both the quarterly and year-to-date periods was primarily driven by lower net internal FTP credits for deposits transferred to other business segments, higher interest income on debt securities and lower interest expense on FHLB advances. The increase in noninterest income for both periods was primarily attributable to higher other income, primarily related to bank-owned life insurance policies, and gain on sales of debt securities. The increase in compensation and employee benefits expense for both periods was primarily driven by additional employer matching contributions under the Company’s 401(k) plan, higher deferred compensation plan costs, and increased incentive compensation. Income tax expense is allocated to the Consumer and Business Banking and the Commercial Banking segments by applying statutory income tax rates to each segment’s income before income taxes. The income tax expense or benefit in the Treasury and Other segment represents the remaining unallocated income tax expense or benefit after allocating income tax expense to the two core segments and reflects the impact of tax credit investment activities. Balance Sheet Analysis Debt Securities The Company maintains a portfolio of high quality and liquid debt securities with a moderate duration profile. It closely manages the overall portfolio credit, interest rate and liquidity risks. The Company’s debt securities provide: •interest income for earnings and yield enhancement; •funding availability for needs arising during the normal course of business; •the ability to execute interest rate risk management strategies in response to changes in economic or market conditions; and 78 •collateral to support pledging agreements as required and/or to enhance the Company’s borrowing capacity. While the Company does not intend to sell or trade its debt securities, it may sell AFS debt securities in response to changes in the balance sheet and related interest rate risk to meet liquidity, regulatory and strategic requirements. The following table presents the distribution of the Company’s AFS and HTM debt securities portfolio by amortized cost and fair value as of June 30, 2026 and December 31, 2025, and by credit ratings as of June 30, 2026: June 30, 2026 December 31, 2025 Ratings as of June 30, 2026 (1) ($ in thousands) Amortized Cost Fair Value % of Fair Value Amortized Cost Fair Value % of Fair Value AAA/AA A BBB BB and Lower AFS debt securities: U.S. Treasury securities $ 1,452,946 $ 1,431,341 10 % $ 1,010,053 $ 993,913 7 % 100 % — % — % — % U.S. government agency and U.S. government-sponsored enterprise debt securities 286,666 254,400 2 % 287,687 257,654 2 % 100 % — % — % — % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2) 11,669,952 11,455,225 78 % 10,544,278 10,397,991 79 % 100 % — % — % — % Municipal securities 271,422 240,688 1 % 277,275 243,102 2 % 100 % — % — % — % Non-agency mortgage-backed securities 617,187 536,241 4 % 667,195 584,735 4 % 97 % — % 3 % — % Corporate debt securities 506,125 421,302 3 % 554,158 464,981 4 % — % 42 % 55 % 3 % Foreign government bonds 251,260 242,349 2 % 247,249 238,455 2 % 45 % 55 % — % — % Asset-backed securities — — — % 31,886 31,389 0 % — % — % — % — % Total AFS debt securities $ 15,055,558 $ 14,581,546 100 % $ 13,619,781 $ 13,212,220 100 % 96 % 2 % 2 % 0 % HTM debt securities: U.S. Treasury securities $ 543,466 $ 528,435 22 % $ 540,666 $ 524,887 21 % 100 % — % — % — % U.S. government agency and U.S. government-sponsored enterprise debt securities 1,008,313 853,706 35 % 1,007,055 860,134 35 % 100 % — % — % — % U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3) 1,109,344 912,771 37 % 1,136,874 943,227 38 % 100 % — % — % — % Municipal securities 184,241 148,582 6 % 185,463 151,498 6 % 100 % — % — % — % Total HTM debt securities $ 2,845,364 $ 2,443,494 100 % $ 2,870,058 $ 2,479,746 100 % 100 % — % — % — % Total debt securities $ 17,900,922 $ 17,025,040 $ 16,489,839 $ 15,691,966 (1)Credit ratings represent independent assessments of the credit quality of debt securities. The Company determines the credit rating of a debt security based on the lowest rating assigned by any of the nationally recognized statistical rating organizations (“NRSROs”) that have rated the security. Investment grade debt securities are those with ratings similar to BBB- or above (as defined by NRSROs) and are generally considered by the rating agencies and market participants to be low credit risk. Ratings percentages are allocated based on fair value. (2)Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $10.0 billion of amortized cost and $9.9 billion of fair value as of June 30, 2026, and amortized cost and fair value both totaling $9.6 billion as of December 31, 2025. (3)Includes GNMA HTM debt securities totaling $76 million of amortized cost and $61 million of fair value as of June 30, 2026, and $79 million of amortized cost and $65 million of fair value as of December 31, 2025. The Company’s AFS and HTM debt securities portfolios had an effective duration (defined as the sensitivity of the value of the portfolio to interest rate changes) of 3.7 and 5.5, respectively, as of June 30, 2026, compared with 3.0 and 5.9, respectively, as of December 31, 2025. The AFS debt securities’ effective duration increased primarily due to the purchase of new fixed‑rate AFS securities, coupled with the sale of floating‑rate AFS securities, while the decline in the HTM debt securities’ effective duration is mainly due to the portfolio run-off. 79 Available-for-Sale Debt Securities AFS debt securities increased $1.4 billion or 10%, from December 31, 2025, to $14.6 billion as of June 30, 2026. The increase was primarily attributable to purchases of agency mortgage-backed securities issued or guaranteed by U.S. government agencies and government-sponsored enterprises, as well as purchases of U.S. Treasury securities. The Company’s AFS debt securities are carried at fair value with non-credit related unrealized gains and losses, net of tax, reported in Other comprehensive (loss) income on the Consolidated Statement of Comprehensive Income. Pre-tax net unrealized losses on AFS debt securities were $474 million as of June 30, 2026, compared with $406 million as of December 31, 2025. Of the AFS debt securities with gross unrealized losses, substantially all were rated investment grade as of both June 30, 2026 and December 31, 2025. For additional information on the policies, methodologies and judgments used to determine the allowance for credit losses on AFS debt securities, see Item 8. Financial Statements — Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K and Note 4 — Securities to the Consolidated Financial Statements in this Form 10-Q. Held-to-Maturity Debt Securities All HTM debt securities were issued, guaranteed, or supported by the U.S. government or government-sponsored enterprises. Accordingly, the Company applied a zero credit loss assumption for these securities and no allowance for credit loss was recorded as of both June 30, 2026 and December 31, 2025. For additional information on AFS and HTM securities, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K and Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 4 — Securities to the Consolidated Financial Statements in this Form 10-Q. Loan Portfolio The Company offers a broad range of financial products designed to meet the credit needs of its borrowers. The Company’s loan portfolio segments include commercial loans, which consist of C&I, CRE, multifamily residential, and construction and land loans, as well as consumer loans, which consist of single-family residential (“SFR”), home equity loans and other consumer loans. The composition of the loan portfolio as of June 30, 2026 was similar to the composition as of December 31, 2025, as presented in the charts below. Total loans held-for-investment of $59.0 billion as of June 30, 2026 increased $2.1 billion or 4% from December 31, 2025, primarily reflecting growth in the C&I and SFR loan portfolios. For additional information on the Company’s loans held-for-investment outstanding balances, see Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q. 80 Commercial The commercial loan portfolio, which includes C&I and total CRE loans, comprised 70% of total loans held-for-investment as of both June 30, 2026 and December 31, 2025. The Company actively monitors the commercial lending portfolio for credit risk and reviews credit exposures for sensitivity to changing economic conditions. Commercial — Commercial and Industrial Loans. Total C&I loan commitments were $28.3 billion and $27.7 billion as of June 30, 2026 and December 31, 2025, respectively, with a utilization rate of 70% as of June 30, 2026, compared with 67% as of December 31, 2025. Total C&I loans of $19.9 billion as of June 30, 2026 increased $1.2 billion or 6% from December 31, 2025. The C&I loan portfolio includes loans and financing for businesses across a wide spectrum of industries. The Company offers a variety of C&I products, including but not limited to commercial business lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, asset-backed finance, project finance and equipment financing. Additionally, the Company has a portfolio of broadly syndicated C&I loans, which represent revolving or term loan facilities that are marketed and sold primarily to institutional investors. This portfolio totaled $1.0 billion as of both June 30, 2026 and December 31, 2025. The Company also has a portfolio of loans to non-depository financial institutions (“NDFI”), which totaled $8.3 billion and $7.6 billion as of June 30, 2026 and December 31, 2025, respectively. The NDFI portfolio is primarily included in the capital call, general & other, and financial services industries, and is diversified across business credit, private equity, and mortgage credit facilities. The majority of the C&I loans had variable interest rates as of both June 30, 2026 and December 31, 2025. The C&I portfolio is well-diversified by industry. The Company monitors concentrations within the C&I loan portfolio by industry and customer exposure, and maintains exposure limits by industry and loan product. The following table presents the industry mix within the Company’s C&I loan portfolio as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 ($ in thousands) Amount % Amount % Industry: Capital call lending $ 2,500,675 13 % $ 1,997,835 (1) 11 % Real estate investment & management 2,310,227 12 % 2,319,896 13 % Media & entertainment 2,214,417 11 % 2,227,571 12 % Financial services 1,469,242 7 % 1,160,853 6 % Food production & distribution 1,335,353 7 % 1,109,996 6 % Manufacturing & wholesale 1,266,044 6 % 1,162,245 6 % Infrastructure & clean energy 1,118,788 6 % 1,113,387 6 % Technology & telecommunications 711,780 3 % 679,036 4 % Healthcare 647,886 3 % 703,769 4 % Hospitality & leisure 644,767 3 % 646,926 3 % Equipment finance 577,935 3 % 447,117 2 % Oil & gas 565,313 3 % 595,102 3 % Art finance 442,139 2 % 503,326 3 % Consumer finance 324,288 2 % 262,728 1 % General & other 3,733,847 19 % 3,720,968 (1) 20 % Total C&I $ 19,862,701 100 % $ 18,650,755 100 % (1)Prior period balances have been reclassified for comparability. Commercial — Total Commercial Real Estate Loans. The total CRE portfolio consists of CRE, multifamily residential, and construction and land loans. The Company’s underwriting parameters for CRE loans are established in compliance with supervisory guidance, and include property type, geography and loan-to-value (“LTV”). 81 The Company’s total CRE loan portfolio is well-diversified by property type with an average CRE loan size of $3 million as of both June 30, 2026 and December 31, 2025. The following table summarizes the Company’s total CRE loans by property type as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 ($ in thousands) Amount % Weighted-average LTV (%) (1) Amount % Weighted-average LTV (%) (1) Property types: Multifamily $ 5,251,556 24 % 50 % $ 5,112,328 24 % 50 % Retail 4,615,201 21 % 47 % 4,509,328 21 % 47 % Industrial 4,109,249 19 % 46 % 4,213,307 20 % 46 % Hotel 2,537,652 12 % 51 % 2,482,765 12 % 51 % Office 2,295,524 11 % 53 % 2,233,910 11 % 52 % Healthcare 934,586 4 % 51 % 858,653 4 % 51 % Construction and land 831,822 4 % 50 % 742,357 3 % 51 % Other 1,093,398 5 % 48 % 1,109,125 5 % 49 % Total CRE loans $ 21,668,988 100 % 49 % $ 21,261,773 100 % 49 % (1)Weighted-average LTV is based on most recent LTV, using the most recent available appraisal and current loan commitment. The following tables provide a summary of the Company’s CRE, multifamily residential, and construction and land loans by geography as of June 30, 2026 and December 31, 2025. The distribution of the total CRE loan portfolio largely reflects the Company’s geographical branch footprint, which is primarily concentrated in California. June 30, 2026 ($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE % Geographic markets: Southern California $ 8,173,183 52 % $ 2,433,549 46 % $ 332,112 40 % $ 10,938,844 50 % Northern California 2,750,901 18 % 917,196 18 % 158,010 19 % 3,826,107 18 % California 10,924,084 70 % 3,350,745 64 % 490,122 59 % 14,764,951 68 % Texas 1,137,039 7 % 556,975 11 % 125,632 15 % 1,819,646 8 % New York 826,576 5 % 333,590 6 % 54,547 7 % 1,214,713 6 % Washington 519,092 4 % 157,294 3 % 30,220 4 % 706,606 3 % Arizona 292,323 2 % 236,778 4 % 36,857 4 % 565,958 3 % Nevada 322,503 2 % 157,790 3 % 9,181 1 % 489,474 2 % Other markets 1,563,993 10 % 458,384 9 % 85,263 10 % 2,107,640 10 % Total loans $ 15,585,610 100 % $ 5,251,556 100 % $ 831,822 100 % $ 21,668,988 100 % December 31, 2025 ($ in thousands) CRE % Multifamily Residential % Construction and Land % Total CRE % Geographic markets: Southern California $ 7,908,374 51 % $ 2,387,149 47 % $ 252,265 34 % $ 10,547,788 50 % Northern California 2,760,043 18 % 914,479 18 % 149,090 20 % 3,823,612 18 % California 10,668,417 69 % 3,301,628 65 % 401,355 54 % 14,371,400 68 % Texas 1,129,088 7 % 488,276 10 % 154,241 21 % 1,771,605 8 % New York 831,276 6 % 349,909 7 % 35,397 5 % 1,216,582 6 % Washington 504,643 3 % 158,186 3 % 14,036 2 % 676,865 3 % Arizona 339,272 2 % 205,264 4 % 38,192 5 % 582,728 3 % Nevada 321,332 2 % 160,103 3 % 883 0 % 482,318 2 % Other markets 1,613,060 11 % 448,962 8 % 98,253 13 % 2,160,275 10 % Total loans $ 15,407,088 100 % $ 5,112,328 100 % $ 742,357 100 % $ 21,261,773 100 % 82 The percentage of total CRE loans located in California was 68% as of both June 30, 2026 and December 31, 2025. Changes in California’s economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan losses. For additional information related to the higher degree of risk from a downturn in California’s economic and real estate markets, see Item 1A. Risk Factors — Risks Related to Geographic and Political Uncertainties and Risks Related to Financial Matters in the Company’s 2025 Form 10-K. Commercial — Commercial Real Estate Loans. The Company focuses on providing financing to experienced real estate investors and developers with moderate levels of leverage, many of whom are long-time customers of the Bank. The Company seeks to underwrite loans with conservative standards for cash flows, debt service coverage and LTV. Owner-occupied properties comprised 20% of the CRE loans as of both June 30, 2026 and December 31, 2025. The remainder were non-owner-occupied properties, where 50% or more of the debt service for the loan is typically provided by rental income from an unaffiliated third party. Interest rates on CRE loans may be fixed, variable or hybrid. The Company offers derivative hedging products to our customers to manage their interest rate risks. As of June 30, 2026, of the 59% of our CRE portfolio that had variable rates, 48% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2025, of the 58% of our CRE portfolio that had variable rates, 52% had customer-level interest rate derivative contracts in place. Commercial — Multifamily Residential Loans. The multifamily residential loan portfolio is largely comprised of loans secured by residential properties with five or more units. The Company offers a variety of first lien mortgages, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust annually after an initial fixed rate period of three to ten years. The Company also offers hedging products to our customers to manage their interest rate risks. As of June 30, 2026, of the 55% of our multifamily residential loan portfolio that had variable rates, 48% had customer-level interest rate derivative contracts in place. In comparison, as of December 31, 2025, of the 51% of our multifamily residential portfolio that had variable rates, 50% had customer-level interest rate derivative contracts in place. Commercial — Construction and Land Loans. Construction and land loans provide financing for a portfolio of projects diversified by real estate property type. Construction loan exposure was comprised of $550 million in loans outstanding, and $397 million in unfunded commitments as of June 30, 2026, compared with $544 million in loans outstanding, and $419 million in unfunded commitments as of December 31, 2025. Land loans totaled $282 million and $198 million as of June 30, 2026 and December 31, 2025, respectively. 83 Consumer Residential mortgage loans are primarily originated through the Bank’s branch network. The average residential mortgage loan size was $442 thousand and $439 thousand as of June 30, 2026 and December 31, 2025, respectively. The following tables summarize the Company’s SFR and home equity loan portfolios by geography and lien priority as of June 30, 2026 and December 31, 2025: June 30, 2026 ($ in thousands) SFR % Home equity loans % Total Residential Mortgage % Geographic markets: Southern California $ 6,243,581 41 % $ 994,949 49 % $ 7,238,530 42 % Northern California 2,104,859 14 % 414,359 20 % 2,519,218 14 % California 8,348,440 55 % 1,409,308 69 % 9,757,748 56 % New York 3,973,957 26 % 304,081 15 % 4,278,038 25 % Washington 809,071 5 % 185,534 9 % 994,605 6 % Massachusetts 580,895 4 % 70,406 3 % 651,301 4 % Georgia 554,612 4 % 27,975 2 % 582,587 3 % Nevada 527,872 3 % 40,413 2 % 568,285 3 % Texas 523,030 3 % — — % 523,030 3 % Other markets 18,432 0 % 1,568 0 % 20,000 0 % Total $ 15,336,309 100 % $ 2,039,285 100 % $ 17,375,594 100 % Lien priority: First mortgage $ 15,336,309 100 % $ 1,423,969 70 % $ 16,760,278 96 % Junior lien mortgage — — % 615,316 30 % 615,316 4 % Total $ 15,336,309 100 % $ 2,039,285 100 % $ 17,375,594 100 % SFR portfolio type: Traditional portfolio $ 13,818,417 90 % $ — — % $ 13,818,417 90 % Bridge to Home Ownership (“BTHO”) portfolio 1,517,892 10 % — — % 1,517,892 10 % Total $ 15,336,309 100 % $ — — % $ 15,336,309 100 % 84 December 31, 2025 ($ in thousands) SFR % Home equity loans % Total Residential Mortgage % Geographic markets: Southern California $ 6,031,124 40 % $ 914,803 48 % $ 6,945,927 41 % Northern California 2,026,767 14 % 392,461 20 % 2,419,228 14 % California 8,057,891 54 % 1,307,264 68 % 9,365,155 55 % New York 4,067,708 27 % 286,995 15 % 4,354,703 26 % Washington 761,739 5 % 188,146 10 % 949,885 6 % Massachusetts 566,462 4 % 68,375 4 % 634,837 4 % Georgia 520,039 3 % 21,500 1 % 541,539 3 % Nevada 493,670 3 % 38,072 2 % 531,742 3 % Texas 513,038 4 % — — % 513,038 3 % Other markets 22,002 0 % 1,545 0 % 23,547 0 % Total $ 15,002,549 100 % $ 1,911,897 100 % $ 16,914,446 100 % Lien priority: First mortgage $ 15,002,549 100 % $ 1,337,066 70 % $ 16,339,615 97 % Junior lien mortgage — — % 574,831 30 % 574,831 3 % Total $ 15,002,549 100 % $ 1,911,897 100 % $ 16,914,446 100 % SFR portfolio type: Traditional portfolio $ 13,692,025 91 % $ — — % 13,692,025 91 % BTHO portfolio 1,310,524 9 % — — % 1,310,524 9 % Total $ 15,002,549 100 % $ — — % $ 15,002,549 100 % Consumer — SFR Loans — Traditional Portfolio. The Company offers a variety of SFR mortgage loan programs, including fixed- and variable-rate loans, as well as hybrid loans with interest rates that adjust on a regular basis, typically annually, after an initial fixed rate period. The Company was in a first lien position in all of its SFR loans as of both June 30, 2026 and December 31, 2025. Many of these loans are reduced documentation loans, for which a substantial down payment is required, resulting in a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 48% and 49% as of June 30, 2026 and December 31, 2025, respectively. These loans have historically experienced very low delinquency and loss rates. Consumer — SFR Loans — BTHO Portfolio. The Company also underwrites a BTHO program aimed at expanding home ownership access across creditworthy low-to-moderate income borrowers. The Company is in a first lien positions in all of its BTHO loans and the weighted average LTV was 88% as of both June 30, 2026 and December 31, 2025. Consumer — Home Equity Loans. The Company's home equity loan portfolio consists primarily of revolving home equity lines of credit, as well as closed-end home equity loans. Total home equity commitments were $5.7 billion and $5.5 billion as of June 30, 2026 and December 31, 2025, respectively, with a utilization rate of 36% as of June 30, 2026, compared with 35% as of December 31, 2025. Substantially all of the Company’s unfunded home equity commitments are unconditionally cancellable. The Company was in a first lien position for 70% of total outstanding home equity loans as of both June 30, 2026 and December 31, 2025. Many of these loans are reduced documentation loans, which have a low LTV ratio at origination, typically 65% or less. The weighted-average LTV ratio was 46% as of both June 30, 2026 and December 31, 2025. As a result, these loans have historically experienced low delinquency and loss rates. Substantially all of the Company’s home equity loans were variable-rate as of both June 30, 2026 and December 31, 2025. All originated commercial and consumer loans are subject to the Company’s conservative underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks associated with these products. The Company conducts quality control procedures and periodic audits, including reviews of lending and legal requirements, to ensure compliance with these requirements. 85 Foreign Outstandings The Company’s international branches, which include the branch in Hong Kong and the subsidiary bank’s branches in China, are subject to the general risks inherent in conducting business in foreign countries, such as regulatory, economic and political uncertainties, and foreign currency exchange rate risks. The following table presents the major financial assets held in the Company’s international branches as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 ($ in thousands) Amount % of Total Consolidated Assets Amount % of Total Consolidated Assets Hong Kong branch: Cash and cash equivalents $ 910,244 1 % $ 860,332 1 % AFS debt securities (1) $ 658,224 1 % $ 684,513 1 % Loans held-for-investment (2) $ 1,386,965 2 % $ 1,133,442 1 % Total assets $ 2,962,515 3 % $ 2,692,309 3 % China subsidiary bank branches: Cash and cash equivalents $ 745,112 1 % $ 640,986 1 % AFS debt securities (3) $ 132,612 0 % $ 128,600 0 % Loans held-for-investment (2) $ 1,293,285 2 % $ 1,223,236 2 % Total assets $ 2,168,657 3 % $ 2,012,751 3 % (1)Comprised of U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, U.S. Treasury securities, and foreign government bonds as of both June 30, 2026 and December 31, 2025. (2)Primarily comprised of C&I loans as of both June 30, 2026 and December 31, 2025. (3)Comprised of foreign government bonds as of both June 30, 2026 and December 31, 2025. The following table presents the total revenue generated by the Company’s international branches for the second quarters and first halves of 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 ($ in thousands) Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue Amount % of Total Consolidated Revenue Hong Kong branch: Total revenue $ 22,384 3 % $ 17,791 3 % $ 43,572 3 % $ 35,604 3 % China subsidiary bank branches: Total revenue $ 7,370 1 % $ 6,740 1 % $ 13,518 1 % $ 14,492 1 % 86 Deposits Deposits are the Company’s primary source of funding, the cost of which has a significant impact on the Company’s net interest income and net interest margin. Additional funding is provided by short- and long-term borrowings, and long-term debt. See Item 2. MD&A — Risk Management — Liquidity Risk Management in this Form 10-Q for a discussion of the Company’s liquidity management. The following table summarizes the Company’s deposits by product type as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 Change ($ in thousands) Amount % Amount % $ % Deposits by product: Noninterest-bearing demand $ 18,355,698 26 % $ 16,697,099 25 % $ 1,658,599 10 % Interest-bearing checking 8,047,826 12 % 7,989,255 12 % 58,571 1 % Money market 16,259,299 23 % 15,439,729 23 % 819,570 5 % Savings 1,891,021 3 % 1,671,804 2 % 219,217 13 % Time deposits 25,538,849 36 % 25,284,814 38 % 254,035 1 % Total deposits $ 70,092,693 100 % $ 67,082,701 100 % $ 3,009,992 4 % The Company’s strategy is to grow and retain relationship-based deposits to provide a stable and low-cost source of funding and liquidity. The Company offers a wide variety of deposit products to meet the needs of its consumer and commercial customers. As a result, we believe our deposit base is seasoned, stable and well-diversified. Total deposits of $70.1 billion as of June 30, 2026 increased $3.0 billion or 4% from December 31, 2025, primarily due to growth in noninterest-bearing demand and money market deposits. The following table provides a breakdown of the Company’s deposits by segment and region as of June 30, 2026 and December 31, 2025: Change ($ in thousands) June 30, 2026 December 31, 2025 $ % Deposits by segment/region: Consumer and Business Banking - U.S. $ 36,951,120 $ 34,494,368 $ 2,456,752 7 % Commercial Banking - U.S. 24,910,459 24,115,647 (1) 794,812 3 % International Branches (2) 4,133,100 3,875,631 257,469 7 % Treasury and Other - U.S. (3) 4,098,014 4,597,055 (1) (499,041) (11) % Total deposits $ 70,092,693 $ 67,082,701 $ 3,009,992 4 % (1)Prior period balances have been reclassified for comparability due to a change in allocation methodology. (2)Deposits of our Hong Kong branch and China subsidiary bank branches are a subset of Commercial Banking segment deposits. (3)Treasury and Other segment deposits reflect wholesale, public funds, and brokered deposits, primarily managed by the Company’s Treasury department. 87 Customer deposit accounts in the U.S. offices are insured by the FDIC for up to $250,000 per depositor, per ownership category. Management believes that presenting uninsured domestic deposits with an adjustment to exclude collateralized and affiliate deposits provides a more accurate view of the deposits at risk, given that collateralized deposits are secured, and affiliate deposits are not customer-facing and are eliminated in consolidation. The following table summarizes the Company’s uninsured domestic deposit balances reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report as of June 30, 2026 and December 31, 2025, after certain adjustments: ($ in thousands) June 30, 2026 December 31, 2025 Uninsured deposits, per regulatory requirements (1) $ 36,244,557 $ 33,431,037 Less: Collateralized deposits (4,100,346) (4,464,567) Affiliate deposits (146,708) (131,106) Uninsured deposits, excluding collateralized and affiliate deposits (a) $ 31,997,503 $ 28,835,364 Total domestic deposits per Call Report (b) $ 66,323,019 $ 63,460,378 Uninsured deposits, excluding collateralized and affiliate deposits, ratio (a)/(b) 48 % 45 % (1)Uninsured deposits, per regulatory requirements, represent the portion of deposit accounts in U.S. branches that exceed the FDIC insurance limit as reported on Schedule RC-O Memo, Item 2 of the Bank’s Call Report. Additional information regarding the impact of deposits on net interest income, with a comparison of average deposit balances and rates, is provided in Item 2. MD&A — Results of Operations — Net Interest Income in this Form 10-Q. See also the discussion of the impact of deposits on liquidity in Item 2. MD&A — Liquidity Risk Management in this Form 10-Q. Capital The Company maintains a strong capital base to support its anticipated asset growth, operating needs, and credit risk exposures, and to ensure that the Company and the Bank are in compliance with all regulatory capital guidelines. The Company engages in regular capital planning processes on at least an annual basis to optimize the use of available capital and to appropriately plan for future capital needs, allocating capital to existing and future business activities. Furthermore, the Company conducts capital stress tests as part of its capital planning process. The stress tests enable the Company to assess the impact of adverse changes in the economy and interest rates on its capital base. The Company’s stockholders’ equity increased $347 million or 4% from $8.9 billion as of December 31, 2025 to $9.2 billion as of June 30, 2026. The increase was primarily due to $721 million of net income, partially offset by $223 million of cash dividends declared, $124 million from open-market common stock repurchases and tax withheld in the form of stock repurchases on vested restricted stock units, and $68 million of other comprehensive loss. For other factors that contributed to the changes in stockholders’ equity, refer to Item 1. Consolidated Financial Statements — Consolidated Statement of Changes in Stockholders’ Equity in this Form 10-Q. On January 22, 2025, the Company’s Board of Directors authorized the repurchase of up to $300 million of East West common stock, which will remain valid through December 31, 2026. For the three months ended June 30, 2026, there were no stock repurchases. For the six months ended June 30, 2026, the Company repurchased $99 million of its common stock. In comparison, the Company repurchased $3 million and $88 million of common stock for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, $117 million of the share repurchase authorization remained available. The Company paid a cash dividend of $0.80 and $0.60 per share during the second quarters of 2026 and 2025, respectively. In July 2026, the Company’s Board of Directors declared a third quarter 2026 cash dividend of $0.80 per share. The dividend is payable on August 17, 2026, to stockholders of record as of August 3, 2026. 88 Regulatory Capital and Ratios The federal banking agencies have risk-based capital adequacy requirements intended to ensure that banking organizations maintain capital that is commensurate with the degree of risk associated with their operations. The Company and the Bank are each subject to these regulatory capital adequacy requirements. See Item 1. Business — Supervision and Regulation — Regulatory Capital Requirements in the Company’s 2025 Form 10-K for additional details. The following table presents the Company’s and the Bank’s capital ratios as of June 30, 2026 and December 31, 2025 under the Basel III Capital Rules, and those required by regulatory agencies for capital adequacy and well-capitalized classification purposes: Basel III Capital Rules June 30, 2026 December 31, 2025 Company Bank Company Bank Minimum Regulatory Requirements Minimum Regulatory Requirements including Capital Conservation Buffer Well-Capitalized Requirements Risk-based capital ratios: Common Equity Tier 1 (“CET1”) capital (1) 15.4 % 13.9 % 15.1 % 13.9 % 4.5 % 7.0 % 6.5 % Tier 1 capital (2) 15.4 % 13.9 % 15.1 % 13.9 % 6.0 % 8.5 % 8.0 % Total capital 16.8 % 15.2 % 16.4 % 15.1 % 8.0 % 10.5 % 10.0 % Tier 1 leverage (1) 11.0 % 9.9 % 10.9 % 10.0 % 4.0 % 4.0 % 5.0 % (1)CET1 capital and Tier 1 leverage well-capitalized requirements apply to the Bank only. There are no well-capitalized requirements on CET1 capital ratio or Tier 1 leverage ratio for bank holding companies. (2)Well-capitalized Tier 1 capital ratio requirements for the Company and the Bank are 6.0% and 8.0%, respectively. The Company is committed to maintaining strong capital levels to assure its investors, customers and regulators that the Company and the Bank are financially sound. As of both June 30, 2026 and December 31, 2025, the Company and the Bank continued to exceed all “well-capitalized” capital requirements and the minimum capital requirements under the Basel III Capital Rules. Total risk-weighted assets increased $1.4 billion from December 31, 2025 to $59.2 billion as of June 30, 2026, primarily due to loan growth. Risk Management Overview In the normal course of business, the Company is exposed to a variety of risks, including risks inherent to the financial services industry and risks specific to the Company’s business. The Company operates under a Board-approved enterprise risk management (“ERM”) program. The Company’s ERM program outlines the company-wide approach to risk management and oversight, and describes the structures and practices employed to manage current and emerging risks inherent to the Company. The Company’s ERM program incorporates risk management throughout the organization in identifying, managing, monitoring, and reporting risks. It identifies the Company’s major risk categories as: credit, liquidity, market, operational, reputational, legal, compliance, Bank Secrecy Act/Anti-Money Laundering & Office of Foreign Assets Control, strategic, and technology risk. The Risk Oversight Committee (“ROC”) of the Board of Directors monitors the ERM program through such identified enterprise risk categories and provides oversight of the Company’s risk appetite and control environment. The ROC provides focused oversight of the Company’s identified enterprise risk categories on behalf of the full Board of Directors. Under the authority of the ROC, management committees apply targeted strategies to manage the risks to which the Company’s operations are exposed. 89 The Company’s ERM program is executed along the three lines of defense model, which provides for a consistent and standardized risk management control environment across the enterprise. The first line of defense is comprised of revenue generating, operational and support units. The second line of defense is comprised of risk management and control functions that provide independent risk oversight of first line activities and report to the Chief Risk Officer. The Chief Risk Officer reports to both the ROC and the Chief Executive Officer. The third line of defense is comprised of the Internal Audit and Independent Asset Review (“IAR”) functions. Internal Audit reports to the Chief Audit Executive (“CAE”), who reports to the Board’s Audit Committee. Internal Audit provides assurance and evaluates the effectiveness of risk management, control, and governance processes as established by the Company. IAR serves as an internal loan review and independent credit risk monitoring function within the Bank that works under the direction of the CAE and reports to the Audit Committee. IAR provides management and the Audit Committee with an objective and independent assessment of the Bank’s credit profile and credit risk management processes. Further discussion and analysis of selected primary risk areas are discussed in the following subsections of Risk Management. Credit Risk Management Credit risk is the risk that a borrower or counterparty will fail to perform in accordance with the terms and conditions of a loan, investment or derivative and expose the Company to loss. Credit risk exists with many of the Company’s assets and exposures such as loans, debt securities and certain derivatives. The majority of the Company’s credit risk is associated with lending activities. The ROC has primary oversight responsibility for the identified enterprise risk categories including credit risk. The ROC monitors management’s assessment of asset quality, credit risk trends, credit quality administration, underwriting standards, and portfolio credit risk management strategies and processes, such as diversification and liquidity, all of which enable management to control credit risk. At the management level, the Credit Risk Management Committee has primary oversight responsibility for credit risk. The Senior Credit Supervision function manages credit policy for the line of business transactional credit risk, assuring that all exposure is risk-rated according to the requirements of the credit risk rating policy. The Senior Credit Supervision function, in connection with the ERM function, also evaluates and reports the overall credit risk exposure to senior management and the ROC, including concentration limits and key risk indicators. Reporting directly to the Board’s Audit Committee, the IAR function provides additional validation support to the Company’s robust credit risk management culture by performing an independent and objective assessment of underwriting and documentation quality, and serves as an assurance function for the risk rating of the Company’s loan portfolios. A key focus of our credit risk management is adherence to a well-controlled underwriting and loan monitoring process. The Company assesses the overall performance and credit quality of the loans held-for-investment portfolio through an integrated analysis of specific performance ratios. This approach forms the basis of the discussion in the sections immediately following: Credit Quality, Nonperforming Assets and Allowance for Credit Losses. Credit Quality The Company utilizes a credit risk rating system to assist in monitoring credit quality. Loans are evaluated using the Company’s internal credit risk rating of 1 through 10. For more information on the Company’s credit quality indicators and internal credit risk ratings, refer to Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q. 90 The following table presents the Company’s criticized loans as of June 30, 2026 and December 31, 2025: Change ($ in thousands) June 30, 2026 December 31, 2025 $ % Criticized loans: Special mention loans $ 433,342 $ 344,876 $ 88,466 26 % Classified loans (1) 854,382 796,273 58,109 7 % Total criticized loans (2) $ 1,287,724 $ 1,141,149 $ 146,575 13 % Special mention loans to loans held-for-investment 0.73 % 0.61 % Classified loans to loans held-for-investment 1.45 % 1.40 % Criticized loans to loans held-for-investment 2.18 % 2.01 % (1)Consists of substandard, doubtful and loss categories. (2)Excludes loans held-for-sale. Criticized loans increased $147 million or 13%, to $1.3 billion during the first half of 2026, primarily driven by increases in special mention C&I and classified CRE loans, partially offset by a decrease in special mention CRE loans. Nonperforming Assets Nonperforming assets are comprised of nonaccrual loans, OREO and other nonperforming assets. Other nonperforming assets and OREO are repossessed assets and properties, respectively, acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment. Nonperforming assets may also include nonperforming loans held-for-sale. The following table presents nonperforming assets information as of June 30, 2026 and December 31, 2025: Change ($ in thousands) June 30, 2026 December 31, 2025 $ % Commercial: C&I $ 48,692 $ 52,244 $ (3,552) (7) % CRE: CRE 69,217 38,546 30,671 80 % Multifamily residential 255 292 (37) (13) % Construction and land 19,650 27,810 (8,160) (29) % Total CRE 89,122 66,648 22,474 34 % Consumer: Residential mortgage: SFR — Traditional 34,383 26,742 7,641 29 % SFR — BTHO 3,978 2,899 1,079 37 % Home equity loans 28,721 17,167 11,554 67 % Total residential mortgage 67,082 46,808 20,274 43 % Other consumer 62 142 (80) (56) % Total nonaccrual loans 204,958 165,842 39,116 24 % OREO, net 24,576 21,183 3,393 16 % Nonperforming loans held-for-sale 17,425 20,976 (3,551) (17) % Total nonperforming assets $ 246,959 $ 208,001 $ 38,958 19 % Nonperforming assets to total assets 0.29 % 0.26 % Nonaccrual loans to loans held-for-investment 0.35 % 0.29 % ALLL to nonaccrual loans 411 % 488 % 91 Loans are generally placed on nonaccrual status at the earlier of when they become 90 days past due or when the full collection of principal or interest becomes uncertain, regardless of the length of time past due. Collectability is generally assessed based on economic and business conditions, the borrower’s financial condition, and the adequacy of collateral, if any. For additional details regarding the Company’s nonaccrual loan policy, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in the Company’s 2025 Form 10-K. Nonaccrual loans of $205 million as of June 30, 2026 increased $39 million or 24% from December 31, 2025, primarily due to higher CRE, C&I and residential mortgage loans placed on nonaccrual status, partially offset by C&I charge-offs, the return of certain CRE and residential mortgage loans to accrual status, and the transfer of certain CRE loans to OREO. As of June 30, 2026, $46 million or 22% of nonaccrual loans were less than 90 days delinquent. In comparison, $27 million or 16% of nonaccrual loans were less than 90 days delinquent as of December 31, 2025. The following table presents the accruing loans past due by portfolio segment as of June 30, 2026 and December 31, 2025: Total Accruing Past Due Loans (1) Change Percentage of Loan Class ($ in thousands) June 30, 2026 December 31, 2025 $ % June 30, 2026 December 31, 2025 Commercial: C&I $ 40,153 $ 26,044 $ 14,109 54 % 0.20 % 0.14 % CRE: CRE 14,736 13,994 742 5 % 0.09 % 0.09 % Multifamily residential 5,728 1,253 4,475 357 % 0.11 % 0.02 % Total CRE 20,464 15,247 5,217 34 % 0.09 % 0.07 % Total commercial 60,617 41,291 19,326 47 % 0.15 % 0.10 % Consumer: Residential mortgage: SFR — Traditional 59,820 58,550 1,270 2 % 0.43 % 0.43 % SFR — BTHO 19,232 15,134 4,098 27 % 1.27 % 1.15 % Home equity loans 28,285 34,650 (6,365) (18) % 1.39 % 1.81 % Total residential mortgage 107,337 108,334 (997) (1) % 0.62 % 0.64 % Other consumer 806 77 729 NM 1.42 % 0.15 % Total consumer 108,143 108,411 (268) 0 % 0.62 % 0.64 % Total $ 168,760 $ 149,702 $ 19,058 13 % 0.29 % 0.26 % NM — Not meaningful. (1)There were no accruing loans past due 90 days or more as of both June 30, 2026 and December 31, 2025. Allowance for Credit Losses The Company maintains its allowance for credit losses at a level it believes is sufficient to provide appropriate reserves to absorb estimated future credit losses in accordance with GAAP. For additional information on the policies, methodologies and judgments used to determine the allowance for credit losses, see Item 7. MD&A — Critical Accounting Estimates and Item 8. Financial Statements — Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, and Note 6 — Loans Receivable and Allowance for Credit Losses to the Consolidated Financial Statements in this Form 10-Q. 92 The following table presents the allowance for credit losses allocated by loan portfolio segments, debt securities and unfunded credit commitments as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 ($ in thousands) Allowance Allocation % of Total Loan Class Allowance Allocation % of Total Loan Class ALLL Commercial: C&I $ 481,087 2.42 % $ 475,613 2.55 % CRE: CRE 231,351 1.48 % 221,494 1.44 % Multifamily residential 40,340 0.77 % 36,555 0.72 % Construction and land 19,968 2.40 % 15,468 2.08 % Total CRE 291,659 1.35 % 273,517 1.29 % Total commercial 772,746 1.86 % 749,130 1.88 % Consumer: Residential mortgage: SFR — Traditional 18,826 0.14 % 19,040 0.14 % SFR — BTHO 42,422 2.79 % 34,423 2.63 % Home equity loans 6,560 0.32 % 5,804 0.30 % Total residential mortgage 67,808 0.39 % 59,267 0.35 % Other consumer 1,502 2.65 % 1,376 2.69 % Total consumer 69,310 0.40 % 60,643 0.36 % Total ALLL $ 842,056 1.43 % $ 809,773 1.42 % Allowance for debt securities $ — $ 1,900 Allowance for unfunded credit commitments $ 47,077 $ 48,690 Total allowance for credit losses $ 889,133 $ 860,363 Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Average loans held-for-investment $ 58,207,342 $ 54,281,289 $ 57,623,480 $ 53,812,106 Net charge-offs $ 27,083 $ 14,651 $ 39,202 $ 29,932 Annualized net charge-offs to average loans held-for-investment 0.19 % 0.11 % 0.14 % 0.11 % Liquidity Risk Management Liquidity. Liquidity risk arises from the Company’s inability to meet its customer deposit withdrawals and obligations to other counterparties as they come due, or to obtain adequate funding at a reasonable cost to meet those obligations. Liquidity risk also considers the stability of deposits. The objective of liquidity management is to manage the potential mismatch of asset and liability cash flows. Maintaining an adequate level of liquidity depends on the institution’s ability to efficiently meet both expected and unexpected cash flow and collateral needs without adversely affecting daily operations or the financial condition of the institution. To achieve this objective, the Company analyzes its liquidity risk, maintains readily available liquid assets, and utilizes diverse funding sources including its stable core deposit base. 93 The ROC has primary oversight responsibility over liquidity risk management. At the management level, the Company’s Asset/Liability Committee (“ALCO”) establishes the liquidity guidelines that govern the day-to-day active management of the Company’s liquidity position by requiring sufficient asset-based liquidity to cover potential funding requirements and avoid over-dependence on volatile, less reliable funding markets. These guidelines are established and monitored for both the Bank and East West on a stand-alone basis to ensure that East West can serve as a source of strength for its subsidiaries. The ALCO regularly monitors the Company’s liquidity status and related management processes, and provides regular reports on the Company’s liquidity position relative to policy limits and guidelines to the Board of Directors. The Company believes its liquidity management practices have been effective under normal operating and stressed market conditions. The Company also maintains a contingency funding plan that utilizes early-warning indicators that are monitored to provide timely detection of adverse liquidity situations and enable management to promptly respond. The contingency funding plan describes the procedures, roles and responsibilities, and communication protocols for managing any identified emerging liquidity problem. The contingency funding plan is tested at least annually through a simulated liquidity stress event designed to assess the effectiveness of the Company's liquidity stress response and coordination across the organization. Management monitors the early-warning indicators defined in the contingency funding plan, which include metrics for measuring the Company’s internal liquidity status as well as company-specific and market-wide external factors. When early warning indicators are triggered, management will evaluate the severity of the emerging liquidity problem and exercise appropriate management actions to address any liquidity and funding shortfalls. Liquidity Sources — Deposits. The Company’s primary source of funding is from deposits, generated by its banking business, which we believe is a relatively stable and low-cost source of funding. Our loans are funded by deposits, which amounted to $70.1 billion as of June 30, 2026, compared with $67.1 billion as of December 31, 2025. The Company’s loan-to-deposit ratio was 84% and 85% as of June 30, 2026 and December 31, 2025, respectively. See Item 2. — MD&A — Balance Sheet Analysis — Deposits in this Form 10-Q for further details related to the Company’s deposits. Other Liquidity Sources. In addition to deposits, the Company has access to various sources of wholesale financing, including borrowing capacity with the FHLB and Federal Reserve Bank (“FRB”) discount window, FRB Standing Repurchase Agreement Facility (“SRF”), and several master repurchase agreements with major brokerage companies to sustain an adequate liquid asset portfolio, meet daily cash demands and allow management flexibility to execute its business strategy. However, general financial market and economic conditions could impact our access to and cost of external funding. Additionally, the Company’s access to capital markets is affected by the Company’s own ratings received from various credit rating agencies. Sources of funding included $3.0 billion of FHLB advances as of both June 30, 2026 and December 31, 2025. As of June 30, 2026, the FHLB advances were comprised of $3.0 billion of term advances that had fixed and floating interest rates ranging from 3.77% to 3.95% with remaining maturities between 20 days and 1.3 years. As of June 30, 2026, the Company had $957 million in gross repurchase agreements, which all matured during July 2026. The Company did not have any repurchase agreements as of December 31, 2025. The Company also held long-term debt of $32 million in the form of junior subordinated debt as of both June 30, 2026 and December 31, 2025, which qualifies as Tier 2 capital for regulatory capital purposes. The Company has pledged loans and/or debt securities to the FHLB and the FRB discount window as collateral, as well as prepositioned unpledged debt securities as collateral for overnight repurchase agreements at the FRB SRF. The Company has established operational procedures to enable borrowing against these assets, including regular monitoring of the total pool of loans and debt securities eligible as collateral. Eligibility of collateral is defined in guidelines from the FHLB and FRB and is subject to change at their discretion. The Company operated within its established risk limits for liquidity measures as of June 30, 2026. Accordingly, the Company believes the cash and cash equivalents, and available collateralized borrowing capacity described below provide sufficient liquidity above its expected cash needs. 94 The Company maintains its sources of liquidity in the form of cash and cash equivalents, prepositioned and unpledged debt securities, and secured borrowing capacity with eligible loans and debt securities pledged as collateral. The following table presents the Company’s total available liquidity as of June 30, 2026 and December 31, 2025: Change ($ in thousands) June 30, 2026 December 31, 2025 $ % Cash and cash equivalents $ 5,088,923 $ 4,188,139 $ 900,784 22 % Interest-bearing deposits with banks 12,426 16,189 (3,763) (23) % Unused secured borrowing capacity from: FRB 14,769,709 13,235,104 1,534,605 12 % FHLB 11,869,827 11,849,692 20,135 0 % Fair value of prepositioned and unpledged securities: Securities prepositioned for FRB SRF 8,157,518 4,822,741 3,334,777 69 % Other unpledged securities 4,534,541 6,659,487 (2,124,946) (32) % Total available liquidity $ 44,432,944 $ 40,771,352 $ 3,661,592 9 % The Company’s total available liquidity increased to $44.4 billion as of June 30, 2026, compared with $40.8 billion as of December 31, 2025. The increase in available liquidity was primarily due to an increase in loans pledged and growth of the securities portfolio. Cash Requirements. In the ordinary course of business, the Company enters into contractual obligations that require future cash payments, including funding for customer deposit withdrawals, repayments for short- and long-term borrowings, and other cash commitments. For additional information on these obligations, see Note 9 — Deposits to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, and Note 7 — Affordable Housing Partnership, Tax Credit and Community Reinvestment Act Investments, Net and Note 8 — Federal Home Loan Bank Advances and Long-Term Debt to the Consolidated Financial Statements in this Form 10-Q. The Company also has off-balance sheet arrangements which represent transactions that are not recorded on the Consolidated Balance Sheet. The Company’s off-balance sheet arrangements include (1) commitments to extend credit, such as loan commitments, commercial letters of credit for foreign and domestic trade, standby letters of credit (“SBLCs”), and financial guarantees, to meet the financing needs of its customers, (2) future interest obligations related to customer deposits and the Company’s borrowings, and (3) transactions with unconsolidated entities that provide financing, liquidity, market risk or credit risk support to the Company, or engage in leasing, hedging or research and development services with the Company. A portion of these commitments are expected to expire unused or only partially used, therefore the total commitment amounts do not necessarily represent future cash requirements. The Company does not expect the total commitment amounts as of June 30, 2026 to have a material current or future impact on the Company’s financial conditions or results of operations. Additional information about the Company’s loan commitments, commercial letters of credit and SBLCs is provided in Note 9 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-Q. The Consolidated Statement of Cash Flows in this Form 10-Q summarizes the Company’s sources and uses of cash by type of activity for the first halves of 2026 and 2025. Excess cash generated by operating and investing activities may be used to repay outstanding debt or invest in liquid assets. Liquidity for East West. In addition to bank level liquidity management, the Company manages liquidity at the parent company level for various operating needs including payment of dividends, repurchases of common stock, principal and interest payments on its borrowings, acquisitions and additional investments in its subsidiaries. East West’s primary source of liquidity is from cash dividends distributed by its subsidiary, East West Bank. The Bank is subject to various statutory and regulatory restrictions on its ability to pay dividends as discussed in Item 1. Business — Supervision and Regulation — Dividends and Other Transfers of Funds in the Company’s 2025 Form 10-K. East West held $791 million in cash and cash equivalents and balances due from the Bank as of June 30, 2026, and $664 million in cash and cash equivalents as of December 31, 2025. Management believes that East West has sufficient sources of liquidity to meet the projected cash obligations for the coming year. 95 Liquidity Stress Testing. The Company utilizes liquidity stress analysis to determine the appropriate amounts of liquidity to maintain at the Company, foreign subsidiary and foreign branch to meet contractual and contingent cash outflows under a range of scenarios. Scenario analyses include assumptions about significant changes in key funding sources, market triggers, potential uses of funding and economic conditions in certain countries. In addition, Company specific events are incorporated into the stress testing. Liquidity stress tests are conducted to identify potential mismatches between liquidity sources and uses over various time horizons and under a variety of stressed conditions. Given the range of potential stresses, the Company maintains contingency funding plans on a consolidated basis and for individual entities. As of June 30, 2026, the Company believes it has adequate liquidity resources to conduct operations and meet other needs in the ordinary course of business, and is not aware of any events that are reasonably likely to have a material adverse effect on its liquidity, capital resources or operations. For more details on how economic conditions may impact our liquidity, see Item 1A. Risk Factors in the Company’s 2025 Form 10-K. Market Risk Management Market risk refers to the risk of potential loss due to adverse movements in market risk factors, including interest rates, foreign exchange rates, commodity prices, and credit spreads. The Company is primarily exposed to interest rate risk through its core business activities of extending loans and acquiring deposits. There have been no significant changes in our risk management practices as described in Item 7. MD&A — Market Risk Management in the Company’s 2025 Form 10-K. Interest Rate Risk Management Interest rate risk is the risk that market fluctuations in interest rates can have a negative impact on the Company’s earnings and capital stemming from mismatches in the Company’s asset and liability cash flows, which primarily arise from customer-related activities such as lending and deposit-taking. The Company is subject to interest rate risk because: •Assets and liabilities may mature or reprice at different times. If assets reprice faster than liabilities and interest rates are generally rising, earnings will initially increase; •Assets and liabilities may reprice at the same time but by different amounts; •Short- and long-term market interest rates may change by different amounts. For example, the shape of the yield curve may affect the yield of new loans and funding costs differently; •The remaining maturity of various assets or liabilities may shorten or lengthen as interest rates change. For example, if long-term mortgage interest rates increase sharply, mortgage-related products may pay down at a slower rate than anticipated, which could impact portfolio income and valuation; or •Interest rates may have a direct or indirect effect on loan demand, collateral values, mortgage origination volume, and the fair value of other financial instruments. The ALCO coordinates the overall management of the Company’s interest rate risk, meets regularly to review the Company’s open market positions and establishes policies to monitor and limit exposure to market risk. Interest rate risk management is carried out primarily through strategies involving the Company’s loan portfolio, debt securities portfolio, derivative instruments, available funding channels and capital market activities. The Company measures and monitors interest rate risk exposure through various risk management tools, which include a simulation model that performs monthly interest rate sensitivity analyses under multiple interest rate scenarios against a baseline. The simulation model incorporates the market’s forward rate expectations and the Company’s earning assets and liabilities. The Company uses a dynamic balance sheet, incorporating expected forward growth and/or deposit product mix shift to perform the interest rate sensitivity analyses. The simulated interest rate scenarios include an instantaneous parallel shift in the yield curve and a gradual parallel shift in the yield curve (“linear rate ramp”). In addition, the Company also performs simulations using other alternative interest rate scenarios, including various permutations of the yield curve flattening, steepening or inverting. The Company uses the results of these simulations to formulate and gauge strategies to achieve a desired risk profile within its capital and liquidity guidelines. 96 The Company’s net interest income volatility simulations are based on a dynamic balance sheet approach and market forward rates to better reflect the interest rate risk on the Company’s financial statements. The Company’s simulation scenarios use parallel shocks for both instantaneous and gradual net interest income simulations, as well as economic value of equity (“EVE”) simulations. These simulations conform with industry-standard scenario definitions and enhance interpretability and comparability. The net interest income simulation model is based on the maturity and repricing characteristics of the Company’s interest rate sensitive assets, liabilities, and related derivative contracts. This model also incorporates various assumptions, which management believes to be reasonable but may have a significant impact on the results. These key assumptions include the timing and magnitude of changes in interest rates, the yield curve evolution and shape, the correlation between various interest rate indices, financial instruments’ future repricing characteristics and spread relative to benchmark rates, and the effect of interest rate floors and caps. The modeled results are highly sensitive to deposit mix and deposit beta assumptions, which are derived from a regression analysis of the Company’s historical deposit data. Simulation results are highly dependent on modeled behaviors and input assumptions. To the extent that actual behaviors are different from the assumptions used in the models, there could be material changes to the interest rate sensitivity results. The key behavioral models impacting interest rate sensitivity simulations include deposit repricing, deposit balance forecasts, and mortgage prepayments. These models and assumptions are documented, supported, and periodically back-tested to assess the reasonableness and effectiveness. The Company also regularly monitors the sensitivity of the other important modeling assumptions, such as loan and security prepayments and early withdrawal on fixed-rate customer liabilities. The Company makes appropriate calibrations to the model as needed and continually validates the model, methodology and results. Changes to key model assumptions are reviewed by the Technical ALCO, a subcommittee of ALCO. Scenario results do not reflect strategies that management could employ to limit the impact of changing interest rate expectations. The simulation does not represent a forecast of the Company’s net interest income but is a tool utilized to assess the risk of the impact of changing market interest rates across a range of interest rate environments. The Company employs a variety of quantitative and qualitative approaches to capture historical deposit repricing and balance behaviors. These historical observations are performed at a granular level based on key product characteristics, including distinctions for brokered, public, and large commercial deposits, which are then combined with forward-looking market expectations and the competitive landscape to generate the deposit repricing and balance forecasting models. The Company uses these deposit repricing models to forecast deposit interest expense. The repricing models provide sufficient granularity to reflect key behavioral differences across product and customer types. The deposit beta, which defines the sensitivity of deposit rates to changes in the effective federal funds rate, is a key parameter of the deposit rate forecast. As of June 30, 2026, the Company assumed a weighted-average beta of approximately 53%. As loan and debt security prepayment assumptions are key components of the Company’s model, the Company incorporates third-party vendor models to forecast prepayment behavior on mortgage loans and securities, which have mortgage loans as underlying collateral. These third-party vendor models have access to more comprehensive industry-level data that captures specific borrower and collateral characteristics over a variety of interest rate cycles. The Company will periodically assess and adjust the vendor models when appropriate to include its own available observations and expectations. Twelve-Month Net Interest Income Simulation Net interest income simulation modeling measures interest rate risk through earnings volatility. The simulation projects the cash flow changes in interest rate sensitive assets and liabilities, expressed in terms of net interest income, over a specified time horizon for defined interest rate scenarios. Net interest income simulations provide insight into the impact of market rate changes on earnings, which help guide risk management decisions. The Company assesses interest rate risk by comparing the changes of net interest income in different interest rate scenarios. 97 The Company models various interest rate scenarios, including scenarios based on gradual ramped shifts in interest rates, and assesses the corresponding impacts. These interest rate scenarios provide insight to the Company’s underlying interest rate risk. The gradual rate ramp table below shows the net interest income volatility under a gradual parallel shift of the market implied forward rates, in even monthly increments over the first 12 months, with the full shift passed through to the forward rates thereafter. The results are based on a dynamic balance sheet with expected loan and deposit growth as of the date of the analysis. Net Interest Income Volatility Change in Interest Rates (in bps) June 30, 2026 December 31, 2025 +200 Gradual rate ramp 2.4 % 3.4 % +100 Gradual rate ramp 1.3 % 1.7 % -100 Gradual rate ramp (1.6) % (1.5) % -200 Gradual rate ramp (2.8) % (3.0) % As of June 30, 2026, the Company’s net interest income profile remains modestly asset-sensitive under gradual ramped shifts in interest rates, with a higher proportion of interest-earning assets repricing in the near term, compared to interest-bearing liabilities. This position is primarily driven by a significant volume of variable-rate loans indexed to Prime and Term Secured Overnight Financing Rate (“SOFR”). A declining rate environment could negatively impact the net interest income. However, this potential impact could be partially mitigated by several structural factors, including balance sheet growth and mix evolution, ongoing reinvestment of cash flows into assets at rates above legacy lower yielding instruments, and prevailing yield‑curve conditions. To reduce net interest income volatility, the Company has designated $4.0 billion in notional value of interest rate contracts as cash flow hedges, which are estimated to mitigate net interest income variability by approximately 1.27% of base net interest income for every 100 bps change in interest rates. A portion of the Company’s interest-bearing deposit portfolio consists of non-maturity deposits that are not directly indexed to short-term rates but remain sensitive to rate changes. The Company actively manages deposit pricing and employs quantitative models to evaluate and forecast deposit behavior under various interest rate scenarios. Actual results may differ from modeled projections due to variations in earning asset growth and changes in deposit composition driven by customer preferences. Modeled outcomes are highly dependent on behavioral assumptions, including deposit mix shifts and customer rate sensitivity. Economic Value of Equity at Risk EVE is a cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. This calculation is used for asset/liability management and measures changes in the present value of the Bank’s assets and liabilities due to changes in interest rates. The economic value approach provides a comparatively broader scope than the net interest income volatility approach since it represents the discounted present value of cash flows over the expected life of the instruments. Due to this longer horizon, EVE is useful to identify risks arising from repricing, prepayment and maturity gaps between assets and liabilities on the balance sheet, as well as from off-balance sheet derivative exposures, over their lifetime. This long-term economic perspective into the Company’s interest rate risk profile allows the Company to identify anticipated negative effects of interest rate fluctuations. However, the difference in time horizons can cause the EVE analysis to diverge from the shorter-term net interest income analysis presented above. Given the uncertainty of the magnitude, timing and direction of future interest rate movements, the shape of the yield curve, and potential changes to the balance sheet, actual results may vary from those predicted by the Company’s model. 98 The following table presents the Company’s EVE sensitivity related to an instantaneous parallel shift in market interest rates by 100 and 200 bps as of June 30, 2026 and December 31, 2025. EVE Volatility (1) Change in Interest Rates (in bps) June 30, 2026 December 31, 2025 +200 (15.9) % (14.1) % +100 (7.6) % (6.6) % -100 5.6 % 5.2 % -200 9.8 % 9.5 % (1)The percentage change represents net present value change of the balance sheet as of the analysis date versus various interest rate scenarios. As of June 30, 2026, the Company’s EVE is expected to decrease when interest rates rise. The EVE sensitivity represents a duration mismatch between fixed-rate assets versus fixed-rate liabilities where more fixed-rate assets are expected to produce more stable net interest income in the short term but may lead to decreases in net present value of future cash flows. Derivatives It is the Company’s policy not to speculate on the future direction of interest rates, foreign currency exchange rates and commodity prices. However, the Company periodically enters into derivative transactions in order to manage its exposure to market risk, primarily interest rate risk and foreign currency risk. The Company believes these derivative transactions, when properly structured and managed, provide a hedge against inherent risk in certain assets and liabilities or against risk in specific transactions. Hedging transactions may be implemented using a variety of derivative instruments such as swaps, forwards, options, and collars. The Company uses interest rate contracts to hedge the variability in interest received on certain floating-rate commercial loans. Prior to entering any hedge accounting activity, the Company analyzes the costs and benefits of the hedge in comparison to alternative strategies. The Company also repositions its hedging derivatives portfolio based on the current assessment of economic and financial conditions, including the interest rate and foreign currency environments, balance sheet composition and trends, and the relative mix of its cash and derivative positions. In addition, the Company enters into derivative transactions in order to accommodate its customers with their business needs or to assist customers with their risk management objectives, such as managing exposure to fluctuations in interest rates, foreign currencies and commodity prices. To economically hedge against the derivative contracts entered into with the Company’s customers, the Company enters into offsetting derivative contracts with third-party financial institutions, some of which are cleared through central clearing organizations. The exposures from derivative transactions are collateralized by cash and/or eligible securities based on limits as set forth in the respective agreements between the Company and counterparty financial institutions. The fair value changes of the derivative contracts traded with third-party financial institutions are expected to be largely offset by the fair value changes of the derivative transactions executed with customers throughout the terms of these contracts, except for the credit valuation adjustment component of the contracts and the spread variances between the customer derivatives and the offsetting financial counterparty positions. The Company also utilizes foreign exchange contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in certain foreign currency on-balance sheet assets and liabilities and to meet funding needs in certain foreign currencies. 99 The Company is subject to credit risk associated with the counterparties to the derivative contracts. This counterparty credit risk is a multi-dimensional form of risk, affected by both the exposure and credit quality of the counterparty, both of which are sensitive to market-induced changes. The Company’s Credit Risk Management Committee provides oversight of credit risk, and the Company has guidelines in place to manage counterparty concentration, tenor limits, and collateral. The Company manages the credit risk of its derivative positions by diversifying its positions among various counterparties, by entering into legally enforceable master netting agreements, and by requiring collateral arrangements, where possible. The Company may also transfer counterparty credit risk related to interest rate swaps to third-party financial institutions through the use of credit risk participation agreements. Certain derivative contracts are required to be cleared through central clearing organizations to further mitigate counterparty credit risk, where variation margin is applied daily as settlement to the fair value of the derivative contracts. In addition, the Company incorporates credit valuation adjustments and other market standard methodologies to appropriately reflect the counterparty’s and the Company’s own nonperformance risk in the fair value measurement of its derivatives. As of June 30, 2026, the Company anticipates performance by all of its counterparties and has not incurred any related credit losses. The following tables summarize certain information on derivative instruments designated as accounting hedges and utilized by the Company in its management of interest rate risk as of June 30, 2026 and December 31, 2025: June 30, 2026 Weighted-average ($ in thousands) Notional Amount Fair Value Assets Fair Value Liabilities Fixed Rate Floating Rate (1) Remaining Term (in months) Cash flow hedges Derivative contracts hedging loans: Interest rate swaps - Receive fixed pay floating $ 3,500,000 $ 7,646 $ 14,705 5.50 % 5.41 % 26.3 Interest rate collars - Buy floor sell cap 500,000 755 — Cap: 4.60% Floor: 3.27% 3.66 % 48.1 Total cash flow hedges $ 4,000,000 $ 8,401 $ 14,705 December 31, 2025 Weighted-average ($ in thousands) Notional Amount Fair Value Assets Fair Value Liabilities Fixed Rate Floating Rate (1) Remaining Term (in months) Cash flow hedges Derivative contracts hedging loans: Interest rate swaps - Receive fixed pay floating $ 4,000,000 $ 39,997 $ 139 5.66 % 5.71 % 28.6 Interest rate collars - Buy floor sell cap 250,000 — — Cap: 4.58% Floor: 1.50% 3.87 % 5.0 Total cash flow hedges $ 4,250,000 $ 39,997 $ 139 (1)Floating rates are indexed to SOFR or Prime. Additional information on the Company’s derivatives is presented in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements in the Company’s 2025 Form 10-K, Note 2 — Fair Value Measurement and Fair Value of Financial Instruments, and Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q. 100 Critical Accounting Policies and Estimates The Company’s significant accounting policies are described in Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Company’s 2025 Form 10-K. Certain of these policies include critical accounting estimates, which are subject to valuation assumptions, subjective or complex judgments about matters that are inherently uncertain, and it is likely that materially different amounts could be reported under different assumptions and conditions. The Company has procedures and processes in place to facilitate making these judgments. The following accounting policies are critical to the Company’s Consolidated Financial Statements: •allowance for credit losses; •fair value estimates; •goodwill impairment; and •income taxes. For additional information on the Company’s critical accounting estimates involving significant judgments, see Item 7. MD&A — Critical Accounting Estimates in the Company’s 2025 Form 10-K. Reconciliation of GAAP to Non-GAAP Financial Measures To supplement the Company’s unaudited interim Consolidated Financial Statements presented in accordance with U.S. GAAP, the Company uses certain non-GAAP measures of financial performance. Non-GAAP financial measures are not prepared in accordance with, or as an alternative to U.S. GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts, or is subject to adjustments that have such an effect, that are not normally excluded or included in the most directly comparable financial measure that is calculated and presented in accordance with U.S. GAAP. The non-GAAP financial measures that may be discussed in this Form 10-Q include but are not limited to ROATCE, tangible book value per share and TCE ratio. Certain additional non-GAAP financial measures that are components of the foregoing non-GAAP financial measures are also set forth and reconciled in the table below. The Company believes these non-GAAP financial measures, when taken together with the corresponding U.S. GAAP financial measures, provide meaningful supplemental information regarding its performance and allow comparability to prior periods. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. The following tables present the reconciliations of U.S. GAAP to non-GAAP financial measures for the periods presented: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Net income (a) $ 363,700 $ 310,253 $ 721,496 $ 600,523 Add: Amortization of mortgage servicing assets 264 316 413 609 Tax effect of amortization adjustment (1) (74) (89) (116) (172) Tangible net income (non-GAAP) (b) $ 363,890 $ 310,480 $ 721,793 $ 600,960 Average stockholders’ equity (c) $ 9,114,396 $ 8,069,982 $ 9,081,070 $ 7,970,083 Less: Average goodwill (465,697) (465,697) (465,697) (465,697) Average mortgage servicing assets (3,884) (4,825) (3,954) (4,971) Average tangible book value (non-GAAP) (d) $ 8,644,815 $ 7,599,460 $ 8,611,419 $ 7,499,415 ROAE (2) (a)/(c) 16.01 % 15.42 % 16.02 % 15.19 % ROATCE (2) (non-GAAP) (b)/(d) 16.88 % 16.39 % 16.90 % 16.16 % (1)Applied statutory tax rate of 28.02% for the three and six months ended June 30, 2026. Applied statutory tax rate of 28.18% for the three and six months ended June 30, 2025. (2)Annualized. 101 ($ and shares in thousands, except per share data) June 30, 2026 December 31, 2025 Stockholders’ equity (a) $ 9,245,929 $ 8,899,202 Less: Goodwill (465,697) (465,697) Mortgage servicing assets (3,736) (4,119) Tangible book value (non-GAAP) (b) $ 8,776,496 $ 8,429,386 Total assets (c) $ 84,763,472 $ 80,434,997 Less: Goodwill (465,697) (465,697) Mortgage servicing assets (3,736) (4,119) Tangible assets (d) $ 84,294,039 $ 79,965,181 Number of common shares at period-end (e) 137,011 137,579 Book value per share (a)/(e) $ 67.48 $ 64.68 Tangible book value per share (non-GAAP) (b)/(e) $ 64.06 $ 61.27 Total stockholders’ equity to assets ratio (a)/(c) 10.91 % 11.06 % TCE ratio (non-GAAP) (b)/(d) 10.41 % 10.54 %