8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

July 19, 2018

EAST WEST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware	000-24939	95-4703316
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

135 N Los Robles Ave., 7th Floor, Pasadena, California 91101

(Address of principal executive offices) (Zip code)

(626) 768-6000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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East West Bancorp, Inc.

Current Report of Form 8-K

Item 2.02. Results of Operations and Financial Condition

On July 19, 2018, East West Bancorp, Inc. (the “Company”) announced, via press release, its financial results for the quarter ended June 30, 2018 (the “Press Release”). The Press Release is available on the Company’s website. The Press Release is “furnished” as Exhibit 99.1 to this Current Report on Form 8-K pursuant to General Instruction B.2 of Form 8-K and is not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities under that Section. This exhibit shall not be incorporated by reference into any filings the Company has made or may make under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure

On July 19, 2018, the Company will hold a conference call to discuss its financial results for the quarter ended June 30, 2018, including the Press Release and other matters relating to the Company. The Company has also made available on its website presentation materials containing certain historical and forward-looking information relating to the Company (the “Presentation Materials”). The Presentation Materials are furnished as Exhibit 99.2 and are incorporated by reference in this Item 7.01. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided. The information provided in Item 7.01 of this report, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, nor shall the information or Exhibit 99.2 be deemed incorporated by reference in any filings under the Securities Act.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1           Press Release, dated July 19, 2018.

99.2           Presentation Materials, dated July 19, 2018.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	EAST WEST BANCORP, INC.
Date: July 19, 2018	By:	/s/ Irene H. Oh
		Irene H. Oh
		Executive Vice President and Chief Financial Officer

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release, dated July 19, 2018.
99.2	Presentation Materials, dated July 19, 2018.

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EX-99.1

	Exhibit 99.1
	East West Bancorp, Inc.
	135 N. Los Robles Ave., 7th Fl.
	Pasadena, CA 91101
	Tel. 626.768.6000

NEWS RELEASE

FOR INVESTOR INQUIRIES, CONTACT:
Irene Oh	Julianna Balicka
Chief Financial Officer	Director of Strategy and Corporate Development
T: (626) 768-6360	T: (626) 768-6985
E: irene.oh@eastwestbank.com	E: julianna.balicka@eastwestbank.com

EAST WEST BANCORP REPORTS NET INCOME FOR SECOND QUARTER 2018

OF $172 MILLION AND DILUTED EARNINGS PER SHARE OF $1.18

Pasadena, California—July 19, 2018 — East West Bancorp, Inc. (“East West” or the “Company”) (Nasdaq: EWBC), parent company of East West Bank, the financial bridge between the United States and Greater China, today reported its financial results for the second quarter of 2018. For the second quarter of 2018, net income was $172million or $1.18 per diluted share.

“Total loans grew $644 million, or 9% annualized, to a record $30.2 billion as of June 30, 2018 from $29.6 billion as of March 31, 2018,” stated Dominic Ng, Chairman and Chief Executive Officer of East West. “Total deposits grew $167 million, or 2% annualized, to a record $32.8 billion as of June 30, 2018 from $32.6 billion as of March 31, 2018.”

“East West delivered solid results in the second quarter of 2018. Compared to the first quarter, our net interest margin expanded by 10 basis points to 3.83% and our net interest income grew by 5% to $342 million. Our second quarter adjusted pre-tax, pre-provision income¹ reached $234 million, an increase of 7% quarter-over-quarter and 18% year-over-year,” continued Ng.

“In the second quarter, our return on assets reached 1.84% and our return on equity reached 17.0%. Our strong profitability supports our organic growth, capital ratio expansion, and the increase to our common stock dividend, which we have raised by 15%.”

“As our profitability and revenue grow, we continue to invest in the bank. Our ongoing investment initiatives include adding talent throughout the organization, enhancing our customers’ experience, and strengthening our risk management infrastructure. Our initiatives demonstrate our commitment to our customers and employees, and our focus on generating long-term value for our shareholders,” concluded Ng.

¹ See reconciliation of GAAP to non-GAAP financial measures in Table 13.

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HIGHLIGHTS OF RESULTS

• Quarterly Earnings —Second quarter 2018 net income of $172.3 million and diluted earnings per share (“EPS”) of $1.18 both decreased by 8% compared to first quarter 2018 net income of $187.0 million and diluted EPS of $1.28. Linked quarter comparisons are impacted by the sale of Desert Community Bank (“DCB”) branches in the first quarter of 2018, which contributed an after-tax gain on sale of $22.2 million or $0.15 per share. Excluding this gain, second quarter net income increased by 5% from adjusted² net income of $164.9 million for the first quarter of 2018; second quarter diluted EPS increased by 4% from the adjusted² diluted EPS of $1.13 for the first quarter of 2018.

• Net Interest Income Growth and Net Interest Margin Expansion — Second quarter 2018 net interest income was $341.7 million, a quarterly increase of $15.0 million, or 5%, primarily due to the expansion of loan yields and loan growth, partially offset by an increase in deposit costs. Second quarter 2018 net interest margin (“NIM”) of 3.83% expanded by 10 basis points linked quarter.

• Record Loans — Total loans of $30.2 billion as of June 30, 2018 were up $643.6 million, or 9% linked quarter annualized, from $29.6 billion as of March 31, 2018. The strongest loan growth came from the single-family mortgage portfolio, followed by commercial and industrial loans. Total loans grew by 11% year-over-year.

• Record Deposits— Total deposits of $32.8 billion as of June 30, 2018 were up $167.4 million, or 2% linked quarter annualized, from $32.6 billion as of March 31, 2018. The sequential quarter growth was largely from an increase in time deposits. Total deposits grew by 5% year-over-year.

• Asset QualityMetrics — The allowance for loan losses was $301.6 million, or 1.00% of loans held-for-investment (“HFI”), as of June 30, 2018, compared to $297.7 million, or 1.01% of loans HFI, as of March 31, 2018. For the second quarter of 2018, annualized net charge-offs were 0.15% of average loans HFI, compared to annualized net charge-offs of 0.13% of average loans HFI for the previous quarter. Non-purchased credit impaired (“Non-PCI”) nonperforming assets were $103.5 million, or 0.27% of total assets, as of June 30, 2018. This is a decrease of $27.4 million or 21% from $131.0 million, or 0.35% of total assets, as of March 31, 2018.

• Capital Levels— Capital levels for East West continue to be strong. As of June 30, 2018, stockholders’ equity was $4.1 billion, or $28.39 per share. Tangible equity³ per common share was $25.01 as of June 30, 2018, an increase of 4% linked quarter and 14% year-over-year. As of June 30, 2018, the tangible equity to tangible assets ratio was 9.64%, the Common Equity Tier 1 (“CET1”) capital ratio was 12.2%, and the total risk-based capital ratio was 13.7%.

² See reconciliation of GAAP to non-GAAP financial measures in Table 12.

³ See reconciliation of GAAP to non-GAAP financial measures in Table 15.

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QUARTERLY RESULTS SUMMARY

	Quarter Ended
($ in millions, except per share data)	June 30, 2018			March 31, 2018			June 30, 2017
Net income	$	172.3		$	187.0		$	118.3
Adjusted net income (1)	$	172.3		$	164.9		$	118.3
Earnings per share (diluted)	$	1.18		$	1.28		$	0.81
Adjusted earnings per share (diluted) (1)	$	1.18		$	1.13		$	0.81
Book value per common share	$	28.39		$	27.46		$	25.40
Tangible equity (1) per common share	$	25.01		$	24.07		$	21.93
Tangible equity to tangible assets ratio (1)	9.64		%	9.37		%	8.95		%
Return on average assets (2)	1.84		%	2.03		%	1.36		%
Return on average equity (2)	17.0		%	19.3		%	13.0		%
Return on average tangible equity (1)(2)	19.5		%	22.3		%	15.3		%
Adjusted return on average assets (1)(2)	1.84		%	1.79		%	1.36		%
Adjusted return on average equity (1)(2)	17.0		%	17.0		%	13.0		%
Adjusted return on average tangible equity (1)(2)	19.5		%	19.7		%	15.3		%
Adjusted pre-tax, pre-provision profitability ratio (1)(2)	2.50		%	2.38		%	2.27		%
Net interest income	$	341.7		$	326.7		$	290.1
Net interest margin (2)	3.83		%	3.73		%	3.49		%
Cost of deposits (2)	0.64		%	0.49		%	0.36		%
Efficiency ratio	45.5		%	42.2		%	50.1		%
Adjusted efficiency ratio (1)	39.9		%	40.6		%	41.3		%

(1) See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13, and 15.

(2) Annualized.

MANAGEMENT OUTLOOK FOR 2018

We have updated our outlook for the full year 2018, adjusting some components relative to a quarter ago. Compared to our full year 2017 results, our outlook for the expected full year 2018 results is as follows:

• End of Period Loans: increase at a percentage rate of approximately 10%.

• Net Interest Margin (excluding the impact of ASC 310-30 discount accretion): we expect full year NIM to be approximately 3.75%.

• Noninterest Expense (excluding tax credit amortization & deposit premium amortization): increase at a percentage rate in the high single digits.

• Provision for Credit Losses: in the range of $70 million to $80 million.

• Tax Items: projecting investment in tax-advantaged credits of $115 million, excluding low income housing tax credits, and associated tax credit amortization expense of $100 million. Projecting full year effective tax rate of approximately 13%.

• Interest Rates: our outlook assumes one more fed funds rate increase in September 2018.

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OPERATING RESULTS SUMMARY

Second Quarter 2018 Compared to First Quarter 2018

Net Interest Income and Net Interest Margin

Net interest income totaled $341.7 million, a 5% increase from $326.7 million. Net interest margin expanded by 10 basis points to 3.83% from 3.73%.

• Average loans of $29.6 billion grew by $434.9 million, or 6% linked quarter annualized.

• Average deposits of $32.4 billion grew by $83.5 million, or 1% linked quarter annualized.

• The yield on loans expanded by 26 basis points to 4.95% from 4.69%.

• The yield on earning assets expanded by 24 basis points to 4.49% from 4.25%.

• The cost of deposits increased by 15 basis points to 0.64% from 0.49%.

• The cost of funds increased by 15 basis points to 0.71% from 0.56%.

Noninterest Income

Total noninterest income totaled $48.3 million, a decrease from $74.4 million in the first quarter, which included a pre-tax gain of $31.5 million from the sale of DCB branches. Excluding the impact of all gains on sales, total fees and other operating income of $44.6 million in the second quarter of 2018 increased by 17% from $38.2 million.

• The increase in letters of credit fees and foreign exchange income largely reflects mark-to-market revaluations for foreign currency balance sheet items.

The following table presents total fees and other operating income for the three months ended June 30, 2018, March 31, 2018, and June 30, 2017.

($ in thousands)	Quarter Ended
	June 30, 2018		March 31, 2018		June 30, 2017
Branch fees	$	10,140	$	10,430	$	10,321
Letters of credit fees and foreign exchange income	15,673		9,602		12,365
Ancillary loan fees and other income	5,841		5,581		5,907
Wealth management fees	4,501		2,953		3,381
Derivative fees and other income	6,570		6,690		3,765
Other fees and operating income	1,865		2,921		6,197
Total fees and other operating income	$	44,590	$	38,177	$	41,936

Noninterest Expense

Noninterest expense of $177.4 million included $155.6 million of adjusted⁴ noninterest expense, $20.5 million in amortization of tax credit and other investments, and $1.4 million in amortization of core deposit intangibles.

• Adjusted noninterest expense of $155.6 million increased by $5.3 million, or 4%, linked quarter. Compared to the prior quarter, we had larger increases in consulting, legal and computer software expenses. These were partially offset by a decrease in compensation and employee benefits from a seasonally higher first quarter, as well as a decrease in deposit insurance premiums and regulatory assessments.

• The adjusted⁴ efficiency ratio was 39.9% in the second quarter, compared to 40.6% in the first quarter.

⁴ See reconciliation of GAAP to non-GAAP financial measures in Table 13.

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TAX RELATED ITEMS

Tax expense in the second quarter of 2018 was $24.6 million and the effective tax rate was 13%, compared to a tax expense of $24.8 million and an effective tax rate of 12% in the first quarter of 2018.

• Tax expense in the first quarter included two discrete items: the accounting for stock-based compensation and the reversal of a liability related to state taxes for prior years, which reduced tax expense by $4.8 million and $3.9 million, respectively.

• Currently, we are projecting a full year 2018 effective tax rate of approximately 13%; previously, we had projected an effective tax rate of 16%. The reduction in the tax rate for the second quarter and full year 2018 to 13% largely reflects a new tax credit investment added in the quarter.

CREDIT QUALITY

The allowance for loan losses totaled $301.6 million, or 1.00% of loans HFI, as of June 30, 2018, compared to $297.7 million, or 1.01% of loans HFI, as of March 31, 2018, and $276.3 million, or 1.02% of loans HFI, as of June 30, 2017.

• The provision for credit losses recorded for the current quarter was $15.5 million, compared to $20.2 million for the first quarter of 2018, and $10.7 million for the second quarter of 2017.

• Net charge-offs for the current quarter were $11.2 million, or annualized 0.15% of average loans HFI. This compares to net charge-offs of $9.4 million, or annualized 0.13% of average loans HFI, for the first quarter of 2018, and net recoveries of $2.6 million, or annualized 0.04% of average loans HFI, for the second quarter of 2017.

• Non-PCI nonperforming assets of $103.5 million, or 0.27% of total assets, as of June 30, 2018, decreased from $131.0 million, or 0.35% of total assets, as of March 31, 2018, and $133.0 million, or 0.37% of total assets, as of June 30, 2017.

CAPITAL STRENGTH

Capital levels for East West continue to be strong. As of June 30, 2018, stockholders’ equity was $4.1 billion, or $28.39 per share. Tangible equity per common share was $25.01 as of June 30, 2018, an increase of 4% linked quarter and 14% year-over-year. The following table presents the regulatory capital ratios for the quarters ended June 30, 2018, March 31, 2018, and June 30, 2017.

EWBC Regulatory Capital Metrics	Basel III
($ in millions)	June 30, 2018 (a)			March 31, 2018			June 30, 2017			Minimum Regulatory Requirements		Well Capitalized Regulatory Requirements		Fully Phased- in Minimum Regulatory Requirements
CET1 capital ratio	12.2		%	11.9		%	11.3		%	4.5	%	6.5	%	7.0	%
Tier 1 risk-based capital ratio	12.2		%	11.9		%	11.3		%	6.0	%	8.0	%	8.5	%
Total risk-based capital ratio	13.7		%	13.4		%	12.8		%	8.0	%	10.0	%	10.5	%
Tier 1 leverage capital ratio	10.0		%	9.6		%	9.3		%	4.0	%	5.0	%	4.0	%
Risk-Weighted Assets (“RWA”) (b)	$	30,424		$	29,892		$	28,445		N/A		N/A		N/A

N/A Not applicable.

(a) The Company’s June 30, 2018 regulatory capital ratios and RWA are preliminary.

(b) Under regulatory guidelines, on-balance sheet assets and credit equivalent amounts of derivatives and off-balance sheet items are assigned to one of several broad risk categories based on the nature of the obligor, or, if relevant, the guarantor or the nature of any collateral. The aggregate dollar value in each risk category is then multiplied by the risk weight associated with that category. The resulting weighted values from each of the risk categories are aggregated for determining total RWA.

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DIVIDEND PAYOUT AND CAPITAL ACTIONS

East West’s Board of Directors has declared third quarter 2018 dividends for the Company’s common stock. The common stock cash dividend of $0.23 per share is payable on August 15, 2018 to stockholders of record on August 1, 2018. As announced on May 29, 2018, this is a 15% increase to the quarterly common stock dividend, up from $0.20 per share previously.

Conference Call

East West will host a conference call to discuss second quarter 2018 earnings with the public on Thursday, July 19, 2018 at 8:30 a.m. PT/11:30 a.m. ET. The public and investment community are invited to listen as management discusses second quarter 2018 results and operating developments.

• The following dial-in information is provided for participation in the conference call: calls within the U.S. - (877) 506-6399; calls within Canada - (855) 669-9657; international calls - (412) 902-6699.

• A presentation to accompany the earnings call will be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

• A listen-only live broadcast of the call will also be available on the Investor Relations page of the Company’s website at www.eastwestbank.com/investors.

• A replay of the conference call will be available on July 19, 2018 at 11:30 a.m. Pacific Time through August 19, 2018. The replay numbers are: within the U.S. - (877) 344-7529; within Canada - (855) 669-9658; International calls - (412) 317-0088; and the replay access code is: 10121411.

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About East West

East West Bancorp, Inc. is a publicly owned company with total assets of $38.1billion that trades on the Nasdaq Global Select Market under the symbol “EWBC”. The Company’s wholly-owned subsidiary, East West Bank, is the premier bank exclusively focused on the United States and Greater China markets, and is one of the largest independent banks headquartered in California. With over 130 locations worldwide, East West operates in California, Georgia, Massachusetts, Nevada, New York, Texas and Washington in the United States. In Greater China, East West’s presence includes full service branches in Hong Kong, Shanghai, Shantou and Shenzhen, and representative offices in Beijing, Chongqing, Guangzhou, Taipei and Xiamen. For more information about East West, visit the Company’s website at www.eastwestbank.com.

Forward-Looking Statements

Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; changes in the commercial and consumer real estate markets; changes in our costs of operation, compliance and expansion; changes in the United States (“U.S.”) economy, including inflation, employment levels, rate of growth and general business conditions; changes in government interest rate policies; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight - Division of Financial Institutions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; changes in the economy of and monetary policy in the People’s Republic of China; changes in income tax laws and regulations and the impact of the Tax Cuts and Jobs Act; impact of other potential federal tax changes and spending cuts; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; changes in the equity and debt securities markets; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; fluctuations of our stock price; fluctuations in foreign currency exchange rates; success and timing of our business strategies; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions; impact of adverse judgments or settlements in litigation; impact of regulatory enforcement actions; changes in our ability to receive dividends from our subsidiaries; impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; impact of natural or man-made disasters or calamities or conflicts or other events that may directly or indirectly result in a negative impact on the Company’s financial performance; continuing consolidation in the financial services industry; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices and cost of operations; impact of adverse changes to our credit ratings from the major credit rating agencies; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; changes in interest rates on our net interest income and net interest margin; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increased funding costs, reduced investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale investment securities portfolio; the Company’s ability to retain key officers and employees; any future strategic acquisitions or divestitures; and other factors set forth in the Company’s public reports including its Annual Report on Form 10-K for the year ended December 31, 2017, and particularly the discussion of risk factors within that document. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the Company’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. The Company assumes no obligation to update such forward-looking statements.

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
($ and shares in thousands, except per share data)
(unaudited)
Table 1
											June 30, 2018 % Change
		June 30, 2018			March 31, 2018			June 30, 2017			Qtr-o-Qtr		Yr-o-Yr
Assets
	Cash and due from banks	$	415,653		$	413,017		$	429,121		0.6	%	(3.1	)%
	Interest-bearing cash with banks	1,881,818			1,901,921			2,323,355			(1.1	)	(19.0	)
	Cash and cash equivalents	2,297,471			2,314,938			2,752,476			(0.8	)	(16.5	)
	Interest-bearing deposits with banks	360,900			478,871			296,679			(24.6	)	21.6
	Securities purchased under resale agreements (“resale agreements”) (1)	975,000			1,050,000			1,300,000			(7.1	)	(25.0	)
	Investment securities	2,707,444			2,811,416			2,943,856			(3.7	)	(8.0	)
	Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock	73,524			73,787			73,173			(0.4	)	0.5
	Loans held-for-sale (“HFS”)	14,658			46,181			11,649			(68.3	)	25.8
	Loans held-for-investment (net of allowance for loan losses of $301,550, $297,654 and $276,316)	29,928,829			29,257,594			26,934,350			2.3		11.1
	Investments in qualified affordable housing partnerships, net	152,556			160,574			169,103			(5.0	)	(9.8	)
	Investments in tax credit and other investments, net	242,595			246,183			189,405			(1.5	)	28.1
	Goodwill	465,547			465,547			469,433			—		(0.8	)
	Other assets	854,430			788,067			777,493			8.4		9.9
	Total assets	$	38,072,954		$	37,693,158		$	35,917,617		1.0	%	6.0	%
Liabilities and Stockholders’ Equity
	Deposits	$	32,776,132		$	32,608,777		$	31,154,287		0.5	%	5.2	%
	Short-term borrowings	58,523			30,277			24,426			93.3		139.6
	FHLB advances	325,020			324,451			322,756			0.2		0.7
	Securities sold under repurchase agreements (“repurchase agreements”) (1)	50,000			50,000			50,000			—		—
	Long-term debt	161,704			166,640			176,450			(3.0	)	(8.4	)
	Accrued expenses and other liabilities	587,291			534,258			519,437			9.9		13.1
	Total liabilities	33,958,670			33,714,403			32,247,356			0.7		5.3
	Stockholders’ equity	4,114,284			3,978,755			3,670,261			3.4		12.1
	Total liabilities and stockholders’ equity	$	38,072,954		$	37,693,158		$	35,917,617		1.0	%	6.0	%
	Book value per common share	$	28.39		$	27.46		$	25.40		3.4	%	11.8	%
	Tangible equity (2) per common share	$	25.01		$	24.07		$	21.93		3.9		14.0
	Tangible equity to tangible assets ratio (2)	9.64		%	9.37		%	8.95		%	2.9		7.8
	Number of common shares at period-end	144,905			144,873			144,486			0.0		0.3

(1) Resale and repurchase agreements are reported net, pursuant to Accounting Standards Codification (“ASC”) 210-20-45, Balance Sheet Offsetting. As of each of June 30, 2018, March 31, 2018 and June 30, 2017, $400.0 million out of $450.0 million of gross repurchase agreements were eligible for netting against gross resale agreements.

(2) See reconciliation of GAAP to non-GAAP financial measures in Table 15.

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EAST WEST BANCORP, INC. AND SUBSIDIARIES
TOTAL LOANS AND DEPOSITS DETAIL
($ in thousands)
(unaudited)
Table 2
											June 30, 2018 % Change
		June 30, 2018			March 31, 2018			June 30, 2017			Qtr-o-Qtr		Yr-o-Yr
Loans:
Commercial lending:
	Commercial and industrial (“C&I”)	$	11,059,019		$	10,818,304		$	10,187,349		2.2	%	8.6	%
	Commercial real estate (“CRE”)	9,054,567			9,022,746			8,465,030			0.4		7.0
	Multifamily residential	2,032,522			1,954,855			1,772,741			4.0		14.7
	Construction and land	623,837			669,340			660,819			(6.8	)	(5.6	)
Consumer lending:
	Single-family residential	5,316,895			4,930,580			4,001,488			7.8		32.9
	Home equity lines of credit (“HELOCs”)	1,769,511			1,775,443			1,786,207			(0.3	)	(0.9	)
	Other consumer	374,028			383,980			337,032			(2.6	)	11.0
	Total loans held-for-investment (1)(2)	30,230,379			29,555,248			27,210,666			2.3		11.1
Loans HFS		14,658			46,181			11,649			(68.3	)	25.8
	Total loans (1)(2)	30,245,037			29,601,429			27,222,315			2.2		11.1
Allowance for loan losses		(301,550		)	(297,654		)	(276,316		)	1.3		9.1
	Net loans (1)(2)	$	29,943,487		$	29,303,775		$	26,945,999		2.2	%	11.1	%
Deposits:
	Noninterest-bearing demand	$	10,739,333		$	11,763,936		$	10,460,230		(8.7	)%	2.7	%
	Interest-bearing checking	4,323,698			4,428,952			4,059,046			(2.4	)	6.5
	Money market	7,634,850			7,913,040			8,193,086			(3.5	)	(6.8	)
	Savings	2,218,228			2,301,780			2,368,611			(3.6	)	(6.3	)
	Total core deposits	24,916,109			26,407,708			25,080,973			(5.6	)	(0.7	)
	Time deposits	7,860,023			6,201,069			6,073,314			26.8		29.4
	Total deposits	$	32,776,132		$	32,608,777		$	31,154,287		0.5	%	5.2	%

(1) Includes $(40.4) million, $(36.6) million and $(9.6) million as of June 30, 2018, March 31, 2018 and June 30, 2017, respectively, of net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts.

(2) Includes ASC 310-30 discount of $26.8 million, $32.2 million and $42.9 million as of June 30, 2018, March 31, 2018 and June 30, 2017, respectively.

9

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 3
		Three Months Ended						June 30, 2018 % Change
		June 30, 2018		March 31, 2018		June 30, 2017		Qtr-o-Qtr		Yr-o-Yr
Interest and dividend income		$	400,311	$	371,873	$	322,775	7.6	%	24.0	%
Interest expense		58,632		45,180		32,684		29.8		79.4
Net interest income before provision for credit losses		341,679		326,693		290,091		4.6		17.8
Provision for credit losses		15,536		20,218		10,685		(23.2	)	45.4
Net interest income after provision for credit losses		326,143		306,475		279,406		6.4		16.7
Noninterest income		48,268		74,444		47,244		(35.2	)	2.2
Noninterest expense		177,419		169,135		168,965		4.9		5.0
Income before income taxes		196,992		211,784		157,685		(7.0	)	24.9
Income tax expense		24,643		24,752		39,355		(0.4	)	(37.4	)
Net income		$	172,349	$	187,032	$	118,330	(7.9	)%	45.7	%
Earnings per share (“EPS”)
- Basic		$	1.19	$	1.29	$	0.82	(8.0	)%	45.2	%
- Diluted		$	1.18	$	1.28	$	0.81	(7.9	)	45.3
Weighted average number of shares outstanding
- Basic		144,899		144,664		144,485		0.2	%	0.3	%
- Diluted		146,091		145,939		145,740		0.1		0.2
		Three Months Ended						June 30, 2018 % Change
		June 30, 2018		March 31, 2018		June 30, 2017		Qtr-o-Qtr		Yr-o-Yr
Noninterest income:
	Branch fees	$	10,140	$	10,430	$	10,321	(2.8	)%	(1.8	)%
	Letters of credit fees and foreign exchange income	15,673		9,602		12,365		63.2		26.8
	Ancillary loan fees and other income	5,841		5,581		5,907		4.7		(1.1	)
	Wealth management fees	4,501		2,953		3,381		52.4		33.1
	Derivative fees and other income	6,570		6,690		3,765		(1.8	)	74.5
	Net gains on sales of loans	2,354		1,582		1,546		48.8		52.3
	Net gains on sales of available-for-sale investment securities	210		2,129		2,720		(90.1	)	(92.3	)
	Net gains on sales of fixed assets	1,114		1,086		1,042		2.6		6.9
	Net gain on sale of business	—		31,470		—		(100.0	)	—
	Other fees and operating income	1,865		2,921		6,197		(36.2	)	(69.9	)
Total noninterest income		$	48,268	$	74,444	$	47,244	(35.2	)%	2.2	%
Noninterest expense:
	Compensation and employee benefits	$	93,865	$	95,234	$	80,744	(1.4	)%	16.3	%
	Occupancy and equipment expense	16,707		16,880		15,554		(1.0	)	7.4
	Deposit insurance premiums and regulatory assessments	5,832		6,273		5,779		(7.0	)	0.9
	Legal expense	2,837		2,255		2,552		25.8		11.2
	Data processing	3,327		3,401		3,058		(2.2	)	8.8
	Consulting expense	5,120		2,352		4,769		117.7		7.4
	Deposit related expense	2,922		2,679		2,505		9.1		16.6
	Computer software expense	5,549		5,054		5,462		9.8		1.6
	Other operating expense	20,779		17,607		20,670		18.0		0.5
	Amortization of tax credit and other investments	20,481		17,400		27,872		17.7		(26.5	)
Total noninterest expense		$	177,419	$	169,135	$	168,965	4.9	%	5.0	%

10

EAST WEST BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
($ and shares in thousands, except per share data)
(unaudited)
Table 4
		Six Months Ended				June 30, 2018 % Change
		June 30, 2018		June 30, 2017		Yr-o-Yr
Interest and dividend income		$	772,184	$	625,444	23.5	%
Interest expense		103,812		63,231		64.2
Net interest income before provision for credit losses		668,372		562,213		18.9
Provision for credit losses		35,754		17,753		101.4
Net interest income after provision for credit losses		632,618		544,460		16.2
Noninterest income		122,712		163,072		(24.7	)
Noninterest expense		346,554		321,843		7.7
Income before income taxes		408,776		385,689		6.0
Income tax expense		49,395		97,623		(49.4	)
Net income		$	359,381	$	288,066	24.8	%
EPS
- Basic		$	2.48	$	2.00	24.4	%
- Diluted		$	2.46	$	1.98	24.5
Weighted average number of shares outstanding
- Basic		144,782		144,368		0.3	%
- Diluted		146,046		145,774		0.2
		Six Months Ended				June 30, 2018 % Change
		June 30, 2018		June 30, 2017		Yr-o-Yr
Noninterest income:
	Branch fees	$	20,570	$	20,245	1.6	%
	Letters of credit fees and foreign exchange income	25,275		23,806		6.2
	Ancillary loan fees and other income	11,422		10,889		4.9
	Wealth management fees	7,454		7,716		(3.4	)
	Derivative fees and other income	13,260		6,271		111.4
	Net gains on sales of loans	3,936		4,300		(8.5	)
	Net gains on sales of available-for-sale investment securities	2,339		5,194		(55.0	)
	Net gains on sales of fixed assets	2,200		73,049		(97.0	)
	Net gain on sale of business	31,470		—		100.0
	Other fees and operating income	4,786		11,602		(58.7	)
Total noninterest income		$	122,712	$	163,072	(24.7	)%
Noninterest expense:
	Compensation and employee benefits	$	189,099	$	165,347	14.4	%
	Occupancy and equipment expense	33,587		31,194		7.7
	Deposit insurance premiums and regulatory assessments	12,105		11,708		3.4
	Legal expense	5,092		5,614		(9.3	)
	Data processing	6,728		6,005		12.0
	Consulting expense	7,472		6,688		11.7
	Deposit related expense	5,601		4,870		15.0
	Computer software expense	10,603		9,430		12.4
	Other operating expense	38,386		38,755		(1.0	)
	Amortization of tax credit and other investments	37,881		42,232		(10.3	)
Total noninterest expense		$	346,554	$	321,843	7.7	%

11

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED AVERAGE BALANCES
($ in thousands)
(unaudited)
Table 5
		Three Months Ended						June 30, 2018 % Change				Six Months Ended				June 30, 2018 % Change
		June 30, 2018		March 31, 2018		June 30, 2017		Qtr-o-Qtr		Yr-o-Yr		June 30, 2018		June 30, 2017		Yr-o-Yr
Loans:
Commercial lending:
	C&I	$	10,747,074	$	10,712,583	$	9,975,216	0.3	%	7.7	%	$	10,729,924	$	9,968,745	7.6	%
	CRE	9,038,228		9,006,593		8,351,403		0.4		8.2		9,022,498		8,248,718		9.4
	Multifamily residential	1,970,538		1,944,516		1,764,720		1.3		11.7		1,957,599		1,710,111		14.5
	Construction and land	667,997		657,568		655,588		1.6		1.9		662,811		664,465		(0.2	)
Consumer lending:
	Single-family residential	5,103,008		4,771,427		3,816,572		6.9		33.7		4,938,134		3,690,782		33.8
	HELOCs	1,787,036		1,779,242		1,800,022		0.4		(0.7	)	1,783,160		1,784,464		(0.1	)
	Other consumer	332,885		339,977		335,266		(2.1	)	(0.7	)	336,411		336,260		0.0
	Total loans (1)(2)	$	29,646,766	$	29,211,906	$	26,698,787	1.5	%	11.0	%	$	29,430,537	$	26,403,545	11.5	%
Investment securities		$	2,735,023	$	2,854,335	$	2,962,201	(4.2	)%	(7.7	)%	$	2,794,350	$	3,110,280	(10.2	)%
Interest-earning assets		$	35,767,808	$	35,513,663	$	33,295,012	0.7	%	7.4	%	$	35,641,438	$	33,204,629	7.3	%
Total assets		$	37,568,895	$	37,381,098	$	34,994,935	0.5	%	7.4	%	$	37,475,515	$	34,961,668	7.2	%
Deposits:
	Noninterest-bearing demand	$	10,984,950	$	11,289,512	$	10,195,755	(2.7	)%	7.7	%	$	11,136,389	$	10,154,195	9.7	%
	Interest-bearing checking	4,387,479		4,559,695		3,872,347		(3.8	)	13.3		4,473,111		3,736,334		19.7
	Money market	7,880,601		8,273,160		7,964,286		(4.7	)	(1.1	)	8,075,796		7,953,618		1.5
	Savings	2,214,793		2,452,452		2,295,299		(9.7	)	(3.5	)	2,332,966		2,289,739		1.9
	Total core deposits	25,467,823		26,574,819		24,327,687		(4.2	)	4.7		26,018,262		24,133,886		7.8
	Time deposits	6,907,174		5,716,638		5,871,236		20.8		17.6		6,315,194		5,821,587		8.5
	Total deposits	$	32,374,997	$	32,291,457	$	30,198,923	0.3	%	7.2	%	$	32,333,456	$	29,955,473	7.9	%
Interest-bearing liabilities		$	21,938,134	$	21,553,595	$	20,662,124	1.8	%	6.2	%	$	21,746,927	$	20,723,804	4.9	%
Stockholders’ equity		$	4,062,311	$	3,922,926	$	3,637,695	3.6	%	11.7	%	$	3,993,004	$	3,565,944	12.0	%

(1) Includes ASC 310-30 discount of $30.0 million, $34.1 million and $45.4 million for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, respectively, and $32.0 million and $47.0 million for the six months ended June 30, 2018 and 2017, respectively.

(2) Includes loans HFS.

12

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 6
		Three Months Ended
		June 30, 2018							March 31, 2018
		Average					Average		Average					Average
		Balance			Interest		Yield/Rate(1)		Balance			Interest		Yield/Rate(1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	2,316,194		$	11,715	2.03	%	$	2,323,771		$	10,945	1.91	%
	Resale agreements (2)	996,154			7,182		2.89	%	1,050,000			6,934		2.68	%
	Investment securities	2,735,023			15,059		2.21	%	2,854,335			15,456		2.20	%
	Loans (3)	29,646,766			365,555		4.95	%	29,211,906			337,904		4.69	%
	FHLB and FRB stock	73,671			800		4.36	%	73,651			634		3.49	%
	Total interest-earning assets	35,767,808			400,311		4.49	%	35,513,663			371,873		4.25	%
Noninterest-earning assets:
	Cash and due from banks	432,401							443,357
	Allowance for loan losses	(292,645		)					(285,836		)
	Other assets	1,661,331							1,709,914
	Total assets	$	37,568,895						$	37,381,098
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,387,479		$	8,416	0.77	%	$	4,559,695		$	6,727	0.60	%
	Money market deposits	7,880,601			18,805		0.96	%	8,273,160			15,840		0.78	%
	Savings deposits	2,214,793			2,035		0.37	%	2,452,452			2,021		0.33	%
	Time deposits	6,907,174			22,009		1.28	%	5,716,638			14,548		1.03	%
	Federal funds purchased and other short-term borrowings	11,695			124		4.25	%	871			7		3.26	%
	FHLB advances	324,665			2,552		3.15	%	334,121			2,260		2.74	%
	Repurchase agreements (2)	50,000			3,042		24.40	%	50,000			2,306		18.70	%
	Long-term debt	161,727			1,649		4.09	%	166,658			1,471		3.58	%
	Total interest-bearing liabilities	21,938,134			58,632		1.07	%	21,553,595			45,180		0.85	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	10,984,950							11,289,512
	Accrued expenses and other liabilities	583,500							615,065
	Stockholders’ equity	4,062,311							3,922,926
	Total liabilities and stockholders’ equity	$	37,568,895						$	37,381,098
Interest rate spread							3.42	%						3.40	%
Net interest income and net interest margin					$	341,679	3.83	%				$	326,693	3.73	%
Adjusted net interest income and adjusted net interest margin (4)					$	335,380	3.76	%				$	321,493	3.67	%

(1) Annualized.

(2) Average balances of resale and repurchase agreements are reported net, pursuant to ASC 210-20-45, Balance Sheet Offsetting.

(3) Includes loans HFS and ASC 310-30 discount of $30.0 million and $34.1 million for the three months ended June 30, 2018 and March 31, 2018, respectively.

(4) See reconciliation of GAAP to non-GAAP financial measures in Table 14.

13

EAST WEST BANCORP, INC. AND SUBSIDIARIES
QUARTER-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 7
		Three Months Ended
		June 30, 2018							June 30, 2017
		Average					Average		Average					Average
		Balance			Interest		Yield/Rate(1)		Balance			Interest		Yield/Rate(1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	2,316,194		$	11,715	2.03	%	$	2,191,730		$	7,552	1.38	%
	Resale agreements (2)	996,154			7,182		2.89	%	1,369,231			7,853		2.30	%
	Investment securities	2,735,023			15,059		2.21	%	2,962,201			13,861		1.88	%
	Loans (3)	29,646,766			365,555		4.95	%	26,698,787			293,039		4.40	%
	FHLB and FRB stock	73,671			800		4.36	%	73,063			470		2.58	%
	Total interest-earning assets	35,767,808			400,311		4.49	%	33,295,012			322,775		3.89	%
Noninterest-earning assets:
	Cash and due from banks	432,401							386,213
	Allowance for loan losses	(292,645		)					(264,869		)
	Other assets	1,661,331							1,578,579
	Total assets	$	37,568,895						$	34,994,935
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,387,479		$	8,416	0.77	%	$	3,872,347		$	4,183	0.43	%
	Money market deposits	7,880,601			18,805		0.96	%	7,964,286			10,145		0.51	%
	Savings deposits	2,214,793			2,035		0.37	%	2,295,299			1,386		0.24	%
	Time deposits	6,907,174			22,009		1.28	%	5,871,236			11,331		0.77	%
	Federal funds purchased and other short-term borrowings	11,695			124		4.25	%	37,609			252		2.69	%
	FHLB advances	324,665			2,552		3.15	%	322,410			1,761		2.19	%
	Repurchase agreements (2)	50,000			3,042		24.40	%	117,582			2,273		7.75	%
	Long-term debt	161,727			1,649		4.09	%	181,355			1,353		2.99	%
	Total interest-bearing liabilities	21,938,134			58,632		1.07	%	20,662,124			32,684		0.63	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	10,984,950							10,195,755
	Accrued expenses and other liabilities	583,500							499,361
	Stockholders’ equity	4,062,311							3,637,695
	Total liabilities and stockholders’ equity	$	37,568,895						$	34,994,935
Interest rate spread							3.42	%						3.26	%
Net interest income and net interest margin					$	341,679	3.83	%				$	290,091	3.49	%
Adjusted net interest income and adjusted net interest margin (4)					$	335,380	3.76	%				$	283,830	3.41	%

(1) Annualized.

(2) Average balances of resale and repurchase agreements are reported net, pursuant to ASC 210-20-45, Balance Sheet Offsetting.

(3) Includes loans HFS and ASC 310-30 discount of $30.0 million and $45.4 million for the three months ended June 30, 2018 and 2017, respectively.

(4) See reconciliation of GAAP to non-GAAP financial measures in Table 14.

14

EAST WEST BANCORP, INC. AND SUBSIDIARIES
YEAR-TO-DATE AVERAGE BALANCES, YIELDS AND RATES
($ in thousands)
(unaudited)
Table 8
		Six Months Ended
		June 30, 2018							June 30, 2017
		Average					Average		Average					Average
		Balance			Interest		Yield/Rate(1)		Balance			Interest		Yield/Rate(1)
Assets
Interest-earning assets:
	Interest-bearing cash and deposits with banks	$	2,319,962		$	22,660	1.97	%	$	1,935,455		$	12,668	1.32	%
	Resale agreements (2)	1,022,928			14,116		2.78	%	1,681,492			17,321		2.08	%
	Investment securities	2,794,350			30,515		2.20	%	3,110,280			29,108		1.89	%
	Loans (3)	29,430,537			703,459		4.82	%	26,403,545			565,100		4.32	%
	FHLB and FRB stock	73,661			1,434		3.93	%	73,857			1,247		3.40	%
	Total interest-earning assets	35,641,438			772,184		4.37	%	33,204,629			625,444		3.80	%
Noninterest-earning assets:
	Cash and due from banks	437,848							387,306
	Allowance for loan losses	(289,259		)					(264,415		)
	Other assets	1,685,488							1,634,148
	Total assets	$	37,475,515						$	34,961,668
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
	Checking deposits	$	4,473,111		$	15,143	0.68	%	$	3,736,334		$	7,770	0.42	%
	Money market deposits	8,075,796			34,645		0.87	%	7,953,618			18,581		0.47	%
	Savings deposits	2,332,966			4,056		0.35	%	2,289,739			2,715		0.24	%
	Time deposits	6,315,194			36,557		1.17	%	5,821,587			21,651		0.75	%
	Federal funds purchased and other short-term borrowings	6,314			131		4.18	%	46,420			665		2.89	%
	FHLB advances	329,367			4,812		2.95	%	460,804			3,791		1.66	%
	Repurchase agreements (2)	50,000			5,348		21.57	%	231,492			5,416		4.72	%
	Long-term debt	164,179			3,120		3.83	%	183,810			2,642		2.90	%
	Total interest-bearing liabilities	21,746,927			103,812		0.96	%	20,723,804			63,231		0.62	%
Noninterest-bearing liabilities and stockholders’ equity:
	Demand deposits	11,136,389							10,154,195
	Accrued expenses and other liabilities	599,195							517,725
	Stockholders’ equity	3,993,004							3,565,944
	Total liabilities and stockholders’ equity	$	37,475,515						$	34,961,668
Interest rate spread							3.41	%						3.18	%
Net interest income and net interest margin					$	668,372	3.78	%				$	562,213	3.41	%
Adjusted net interest income and net interest margin (4)					$	656,873	3.71	%				$	552,719	3.35	%

(1) Annualized

(2) Average balances of resale and repurchase agreements are reported net, pursuant to ASC 210-20-45, Balance Sheet Offsetting.

(3) Includes loans HFS and ASC 310-30 discount of $32.0 million and $47.0 million for the six months ended June 30, 2018 and 2017, respectively.

(4) See reconciliation of GAAP to non-GAAP financial measures in Table 14.

15

EAST WEST BANCORP, INC. AND SUBSIDIARIES
SELECTED RATIOS
(unaudited)
Table 9
		Three Months Ended (1)							June 30, 2018 Basis Point Change
		June 30, 2018		March 31, 2018		June 30, 2017			Qtr-o-Qtr			Yr-o-Yr
	Return on average assets	1.84	%	2.03	%	1.36	%		(19	)	bps	48		bps
	Adjusted return on average assets (2)	1.84	%	1.79	%	1.36	%		5			48
	Return on average equity	17.02	%	19.34	%	13.05	%		(232	)		397
	Adjusted return on average equity (2)	17.02	%	17.04	%	13.05	%		(2	)		397
	Return on average tangible equity (2)	19.50	%	22.30	%	15.30	%		(280	)		420
	Adjusted return on average tangible equity (2)	19.50	%	19.68	%	15.30	%		(18	)		420
	Interest rate spread	3.42	%	3.40	%	3.26	%		2			16
	Net interest margin	3.83	%	3.73	%	3.49	%		10			34
	Adjusted net interest margin (2)	3.76	%	3.67	%	3.41	%		9			35
	Average loan yield	4.95	%	4.69	%	4.40	%		26			55
	Adjusted average loan yield (2)	4.86	%	4.61	%	4.30	%		25			56
	Yield on average interest-earning assets	4.49	%	4.25	%	3.89	%		24			60
	Cost of interest-bearing deposits	0.96	%	0.76	%	0.54	%		20			42
	Cost of deposits	0.64	%	0.49	%	0.36	%		15			28
	Cost of funds	0.71	%	0.56	%	0.42	%		15			29
	Adjusted pre-tax, pre-provision profitability ratio (2)	2.50	%	2.38	%	2.27	%		12			23
	Adjusted noninterest expense/average assets (2)	1.66	%	1.63	%	1.60	%		3			6
	Efficiency ratio	45.50	%	42.16	%	50.09	%		334			(459	)
	Adjusted efficiency ratio (2)	39.89	%	40.64	%	41.30	%		(75	)	bps	(141	)	bps
		Six Months Ended (1)				June 30, 2018 Basis Point Change
		June 30, 2018		June 30, 2017		Yr-o-Yr
	Return on average assets	1.93	%	1.66	%	27		bps
	Adjusted return on average assets (2)	1.81	%	1.42	%	39
	Return on average equity	18.15	%	16.29	%	186
	Adjusted return on average equity (2)	17.03	%	13.94	%	309
	Return on average tangible equity (2)	20.87	%	19.14	%	173
	Adjusted return on average tangible equity (2)	19.59	%	16.40	%	319
	Interest rate spread	3.41	%	3.18	%	23
	Net interest margin	3.78	%	3.41	%	37
	Adjusted net interest margin (2)	3.71	%	3.35	%	36
	Average loan yield	4.82	%	4.32	%	50
	Adjusted average loan yield (2)	4.74	%	4.24	%	50
	Yield on average interest-earning assets	4.37	%	3.80	%	57
	Cost of interest-bearing deposits	0.86	%	0.52	%	34
	Cost of deposits	0.56	%	0.34	%	22
	Cost of funds	0.64	%	0.41	%	23
	Adjusted pre-tax, pre-provision profitability ratio (2)	2.44	%	2.18	%	26
	Adjusted noninterest expense/average assets (2)	1.65	%	1.59	%	6
	Efficiency ratio	43.81	%	44.37	%	(56	)
	Adjusted efficiency ratio (2)	40.26	%	42.23	%	(197	)	bps

(1) Annualized except for efficiency ratio.

(2) See reconciliation of GAAP to non-GAAP financial measures in Tables 12, 13, 14 and 15.

16

EAST WEST BANCORP, INC. AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
($ in thousands)
(unaudited)
Table 10
		Three Months Ended									Six Months Ended
		June 30, 2018			March 31, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Non-Purchased Credit Impaired (“Non-PCI”) Loans
	Allowance for non-PCI loans, beginning of period	$	297,607		$	287,070		$	263,007		$	287,070		$	260,402
	Provision for loan losses on non-PCI loans	15,139			19,933			10,680			35,072			18,726
	Net (charge-offs) recoveries:
	Commercial lending:
	C&I	(13,023		)	(10,758		)	1,652			(23,781		)	(4,950		)
	CRE	2			427			423			429			992
	Multifamily residential	1,061			333			128			1,394			695
	Construction and land	258			435			87			693			(37		)
	Consumer lending:
	Single-family residential	629			183			242			812			253
	HELOCs	—			—			—			—			24
	Other consumer	(162		)	(16		)	19			(178		)	133
	Total net (charge-offs) recoveries	(11,235		)	(9,396		)	2,551			(20,631		)	(2,890		)
	Allowance for non-PCI loans, end of period	301,511			297,607			276,238			301,511			276,238
Purchased Credit Impaired (“PCI”) Loans
	Allowance for PCI loans, beginning of period	47			58			87			58			118
	Reversal of loan losses on PCI loans	(8		)	(11		)	(9		)	(19		)	(40		)
	Allowance for PCI loans, end of period	39			47			78			39			78
	Allowance for loan losses	301,550			297,654			276,316			301,550			276,316
Unfunded Credit Facilities
	Allowance for unfunded credit reserves, beginning of period	13,614			13,318			15,174			13,318			16,121
	Provision for (reversal of) unfunded credit reserves	405			296			14			701			(933		)
	Allowance for unfunded credit reserves, end of period	14,019			13,614			15,188			14,019			15,188
	Allowance for credit losses	$	315,569		$	311,268		$	291,504		$	315,569		$	291,504

17

	EAST WEST BANCORP, INC. AND SUBSIDIARIES
	CREDIT QUALITY
	($ in thousands)
	(unaudited)
Table 11
Non-PCI Nonperforming Assets		June 30, 2018			March 31, 2018			June 30, 2017
Nonaccrual loans:
Commercial lending:
	C&I	$	57,097		$	80,807		$	87,189
	CRE	25,748			26,496			25,975
	Multifamily residential	1,727			2,050			2,678
	Construction and land	—			3,973			4,344
Consumer lending:
	Single-family residential	7,625			7,465			7,624
	HELOCs	8,135			6,935			2,996
	Other consumer	2,491			2,491			—
	Total nonaccrual loans	102,823			130,217			130,806
Other real estate owned, net		709			734			2,189
	Total nonperforming assets	$	103,532		$	130,951		$	132,995
Credit Quality Ratios		June 30, 2018			March 31, 2018			June 30, 2017
Non-PCI nonperforming assets to total assets (1)		0.27		%	0.35		%	0.37		%
Non-PCI nonaccrual loans to loans held-for-investment (1)		0.34		%	0.44		%	0.48		%
Allowance for loan losses to loans held-for-investment (1)		1.00		%	1.01		%	1.02		%
Allowance for loan losses to non-PCI nonaccrual loans		293.27		%	228.58		%	211.24		%
Annualized quarterly net (charge-offs) recoveriesto average loans held-for-investment		(0.15		)%	(0.13		)%	0.04		%

(1) Total assets and loans held-for-investment include PCI loans of $383.7 million, $452.4 million and $565.5 million as of June 30, 2018, March 31, 2018 and June 30, 2017, respectively.

18

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ and shares in thousands, except for per share data)
(unaudited)
Table 12
During the first quarter of 2017, the Company consummated a sale and leaseback transaction on a commercial property and recognized a pre-tax gain on sale of $71.7 million. During the first quarter of 2018, the Company sold its Desert Community Bank (“DCB”) branches and recognized a pre-tax gain on sale of $31.5 million. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that exclude the impact of after-tax gains on the sales of the commercial property and DCB branches (where applicable) provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods.
		Three Months Ended
		June 30, 2018			March 31, 2018			June 30, 2017
Net income	(a)	$	172,349		$	187,032		$	118,330
Less: Gain on sale of business, net of tax (1)	(b)	—			(22,167		)	—
Adjusted net income	(c)	$	172,349		$	164,865		$	118,330
Diluted weighted average number of shares outstanding	(d)	146,091			145,939			145,740
Diluted EPS	(a)/(d)	$	1.18		$	1.28		$	0.81
Diluted EPS impact of gain on sale of business, net of tax	(b)/(d)	—			(0.15		)	—
Adjusted diluted EPS		$	1.18		$	1.13		$	0.81
Average total assets	(e)	$	37,568,895		$	37,381,098		$	34,994,935
Average stockholders’ equity	(f)	$	4,062,311		$	3,922,926		$	3,637,695
Return on average assets (2)	(a)/(e)	1.84		%	2.03		%	1.36		%
Adjusted return on average assets (2)	(c)/(e)	1.84		%	1.79		%	1.36		%
Return on average equity (2)	(a)/(f)	17.02		%	19.34		%	13.05		%
Adjusted return on average equity (2)	(c)/(f)	17.02		%	17.04		%	13.05		%
		Six Months Ended
		June 30, 2018			June 30, 2017
Net income	(g)	$	359,381		$	288,066
Less: Gain on sale of the commercial property, net of tax (1)	(h)	—			(41,526		)
Gain on sale of business, net of tax (1)	(i)	(22,167		)	—
Adjusted net income	(j)	$	337,214		$	246,540
Diluted weighted average number of shares outstanding	(k)	146,046			145,774
Diluted EPS	(g)/(k)	$	2.46		$	1.98
Diluted EPS impact of gain on sale of the commercial property, net of tax	(h)/(k)	—			(0.28		)
Diluted EPS impact of gain on sale of business, net of tax	(i)/(k)	(0.15		)	—
Adjusted diluted EPS		$	2.31		$	1.70
Average total assets	(l)	$	37,475,515		$	34,961,668
Average stockholders’ equity	(m)	$	3,993,004		$	3,565,944
Return on average assets (2)	(g)/(l)	1.93		%	1.66		%
Adjusted return on average assets (2)	(j)/(l)	1.81		%	1.42		%
Return on average equity (2)	(g)/(m)	18.15		%	16.29		%
Adjusted return on average equity (2)	(j)/(m)	17.03		%	13.94		%

(1) Statutory rate of 29.56% was applied for the three months ended March 31, 2018, and the three and six months ended June 30, 2018. Statutory rate of 42.05% was applied for the three and six months ended June 30, 2017.

(2) Annualized.

19

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 13
Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents the aggregate of adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue represents the aggregate of net interest income and adjusted noninterest income, where adjusted noninterest income excludes the gains on the sales of the commercial property and DCB branches (where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, and the amortization of core deposit intangibles (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods.
		Three Months Ended
		June 30, 2018			March 31, 2018			June 30, 2017
Net interest income before provision for credit losses	(a)	$	341,679		$	326,693		$	290,091
Total noninterest income		48,268			74,444			47,244
Total revenue	(b)	389,947			401,137			337,335
Noninterest income		48,268			74,444			47,244
Less: Gain on sale of business		—			(31,470		)	—
Adjusted noninterest income	(c)	$	48,268		$	42,974		$	47,244
Adjusted revenue	(a)+(c) = (d)	$	389,947		$	369,667		$	337,335
Total noninterest expense	(e)	$	177,419		$	169,135		$	168,965
Less: Amortization of tax credit and other investments		(20,481		)	(17,400		)	(27,872		)
Amortization of core deposit intangibles		(1,373		)	(1,485		)	(1,762		)
Adjusted noninterest expense	(f)	$	155,565		$	150,250		$	139,331
Efficiency ratio	(e)/(b)	45.50		%	42.16		%	50.09		%
Adjusted efficiency ratio	(f)/(d)	39.89		%	40.64		%	41.30		%
Adjusted pre-tax, pre-provision income	(d)-(f) = (g)	$	234,382		$	219,417		$	198,004
Average total assets	(h)	$	37,568,895		$	37,381,098		$	34,994,935
Adjusted pre-tax, pre-provision profitability ratio (1)	(g)/(h)	2.50		%	2.38		%	2.27		%
Adjusted noninterest expense (1)/average assets	(f)/(h)	1.66		%	1.63		%	1.60		%
		Six Months Ended
		June 30, 2018			June 30, 2017
Net interest income before provision for credit losses	(i)	$	668,372		$	562,213
Total noninterest income		122,712			163,072
Total revenue	(j)	791,084			725,285
Noninterest income		122,712			163,072
Less: Gain on sale of the commercial property		—			(71,654		)
Gain on sale of business		(31,470		)	—
Adjusted noninterest income	(k)	$	91,242		$	91,418
Adjusted revenue	(i)+(k) = (l)	$	759,614		$	653,631
Total noninterest expense	(m)	$	346,554		$	321,843
Less: Amortization of tax credit and other investments		(37,881		)	(42,232		)
Amortization of core deposit intangibles		(2,858		)	(3,579		)
Adjusted noninterest expense	(n)	$	305,815		$	276,032
Efficiency ratio	(m)/(j)	43.81		%	44.37		%
Adjusted efficiency ratio	(n)/(l)	40.26		%	42.23		%
Adjusted pre-tax, pre-provision income	(l)-(n) = (o)	$	453,799		$	377,599
Average total assets	(p)	$	37,475,515		$	34,961,668
Adjusted pre-tax, pre-provision profitability ratio (1)	(o)/(p)	2.44		%	2.18		%
Adjusted noninterest expense (1)/average assets	(n)/(p)	1.65		%	1.59		%

(1) Annualized.

20

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 14
Management believes that presenting the adjusted average loan yield and adjusted net interest margin that exclude the ASC 310-30 discount accretion impact provides clarity to financial statement users regarding the change in loan contractual yields and allows comparability to prior periods.
		Three Months Ended									Six Months Ended
Yield on Average Loans		June 30, 2018			March 31, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Interest income on loans	(a)	$	365,555		$	337,904		$	293,039		$	703,459		$	565,100
Less: ASC 310-30 discount accretion income		(6,299		)	(5,200		)	(6,261		)	(11,499		)	(9,494		)
Adjusted interest income on loans	(b)	$	359,256		$	332,704		$	286,778		$	691,960		$	555,606
Average loans	(c)	$	29,646,766		$	29,211,906		$	26,698,787		$	29,430,537		$	26,403,545
Add: ASC 310-30 discount		29,997			34,059			45,398			32,017			46,973
Adjusted average loans	(d)	$	29,676,763		$	29,245,965		$	26,744,185		$	29,462,554		$	26,450,518
Average loan yield (1)	(a)/(c)	4.95		%	4.69		%	4.40		%	4.82		%	4.32		%
Adjusted average loan yield (1)	(b)/(d)	4.86		%	4.61		%	4.30		%	4.74		%	4.24		%
Net Interest Margin
Net interest income	(e)	$	341,679		$	326,693		$	290,091		$	668,372		$	562,213
Less: ASC 310-30 discount accretion income		(6,299		)	(5,200		)	(6,261		)	(11,499		)	(9,494		)
Adjusted net interest income	(f)	$	335,380		$	321,493		$	283,830		$	656,873		$	552,719
Average interest-earning assets	(g)	$	35,767,808		$	35,513,663		$	33,295,012		$	35,641,438		$	33,204,629
Add: ASC 310-30 discount		29,997			34,059			45,398			32,017			46,973
Adjusted average interest-earning assets	(h)	$	35,797,805		$	35,547,722		$	33,340,410		$	35,673,455		$	33,251,602
Net interest margin  (1)	(e)/(g)	3.83		%	3.73		%	3.49		%	3.78		%	3.41		%
Adjusted net interest margin (1)	(f)/(h)	3.76		%	3.67		%	3.41		%	3.71		%	3.35		%

(1) Annualized.

21

EAST WEST BANCORP, INC. AND SUBSIDIARIES
GAAP TO NON-GAAP RECONCILIATION
($ in thousands)
(unaudited)
Table 15
The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non-GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
		June 30, 2018			March 31, 2018			June 30, 2017
Stockholders’ equity	(a)	$	4,114,284		$	3,978,755		$	3,670,261
Less: Goodwill		(465,547		)	(465,547		)	(469,433		)
Other intangible assets (1)		(25,029		)	(26,196		)	(32,012		)
Tangible equity	(b)	$	3,623,708		$	3,487,012		$	3,168,816
Total assets	(c)	$	38,072,954		$	37,693,158		$	35,917,617
Less: Goodwill		(465,547		)	(465,547		)	(469,433		)
Other intangible assets (1)		(25,029		)	(26,196		)	(32,012		)
Tangible assets	(d)	$	37,582,378		$	37,201,415		$	35,416,172
Total stockholders’ equity to total assets ratio	(a)/(c)	10.81		%	10.56		%	10.22		%
Tangible equity to tangible assets ratio	(b)/(d)	9.64		%	9.37		%	8.95		%
Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax effects of the amortization of core deposit intangibles and mortgage servicing assets and the after-tax gains on the sales of the commercial property and DCB branches (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion.
		Three Months Ended
		June 30, 2018			March 31, 2018			June 30, 2017
Net Income		$	172,349		$	187,032		$	118,330
Add: Amortization of core deposit intangibles, net of tax (2)		967			1,046			1,021
Amortization of mortgage servicing assets, net of tax (2)		305			333			241
Tangible net income	(e)	$	173,621		$	188,411		$	119,592
Less: Gain on sale of business, net of tax (2)		—			(22,167		)	—
Adjusted tangible net income	(f)	$	173,621		$	166,244		$	119,592
Average stockholders’ equity		$	4,062,311		$	3,922,926		$	3,637,695
Less: Average goodwill		(465,547		)	(468,785		)	(469,433		)
Average other intangible assets (1)		(25,648		)	(28,102		)	(33,101		)
Average tangible equity	(g)	$	3,571,116		$	3,426,039		$	3,135,161
Return on average tangible equity (3)	(e)/(g)	19.50		%	22.30		%	15.30		%
Adjusted return on average tangible equity (3)	(f)/(g)	19.50		%	19.68		%	15.30		%
		Six Months Ended
		June 30, 2018			June 30, 2017
Net Income		$	359,381		$	288,066
Add: Amortization of core deposit intangibles, net of tax (2)		2,013			2,074
Amortization of mortgage servicing assets, net of tax (2)		638			507
Tangible net income	(h)	$	362,032		$	290,647
Less: Gain on sale of the commercial property, net of tax (2)		—			(41,526		)
Gain on sale of business, net of tax (2)		(22,167		)	—
Adjusted tangible net income	(i)	$	339,865		$	249,121
Average stockholders’ equity		$	3,993,004		$	3,565,944
Less: Average goodwill		(467,157		)	(469,433		)
Average other intangible assets (1)		(26,868		)	(34,039		)
Average tangible equity	(j)	$	3,498,979		$	3,062,472
Return on average tangible equity (3)	(h)/(j)	20.87		%	19.14		%
Adjusted return on average tangible equity (3)	(i)/(j)	19.59		%	16.40		%

(1) Includes core deposit intangibles and mortgage servicing assets.

(2) Statutory rate of 29.56% was applied for the three months ended March 31, 2018, and the three and six months ended June 30, 2018. Statutory rate of 42.05% was applied for the three and six months ended June 30, 2017.

(3) Annualized.

22

EX-99.2

EWBC Earnings Results Second Quarter 2018 July 19, 2018

Forward-Looking Statements Forward-Looking Statements Certain matters set forth herein (including any exhibits hereto) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results. Forward-looking statements may include, but are not limited to, the use of forward-looking language, such as “likely result in,” “expects,” “anticipates,” “estimates,” “forecasts,” “projects,” “intends to,” or may include other similar words or phrases, such as “believes,” “plans,” “trend,” “objective,” “continues,” “remains,” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” “may,” “might,” “can,” or similar verbs. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those projected. These risks and uncertainties, some of which are beyond our control, include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; changes in the commercial and consumer real estate markets; changes in our costs of operation, compliance and expansion; changes in the United States (“U.S.”) economy, including inflation, employment levels, rate of growth and general business conditions; changes in government interest rate policies; changes in laws or the regulatory environment including regulatory reform initiatives and policies of the U.S. Department of Treasury, the Board of Governors of the Federal Reserve Board System, the Federal Deposit Insurance Corporation, the U.S. Securities and Exchange Commission, the Consumer Financial Protection Bureau and the California Department of Business Oversight — Division of Financial Institutions; heightened regulatory and governmental oversight and scrutiny of the Company’s business practices, including dealings with consumers; changes in the economy of and monetary policy in the People’s Republic of China; changes in income tax laws and regulations and the impact of the Tax Cuts and Jobs Act; impact of other potential federal tax changes and spending cuts; changes in accounting standards as may be required by the Financial Accounting Standards Board or other regulatory agencies and their impact on critical accounting policies and assumptions; changes in the equity and debt securities markets; future credit quality and performance, including our expectations regarding future credit losses and allowance levels; fluctuations of our stock price; fluctuations in foreign currency exchange rates; success and timing of our business strategies; our ability to adopt and successfully integrate new technologies into our business in a strategic manner; impact of reputational risk from negative publicity, fines and penalties and other negative consequences from regulatory violations and legal actions; impact of adverse judgments or settlements in litigation; impact of regulatory enforcement actions; changes in our ability to receive dividends from our subsidiaries; impact of political developments, wars or other hostilities that may disrupt or increase volatility in securities or otherwise affect economic conditions; impact of natural or man-made disasters or calamities or conflicts or other events that may directly or indirectly result in a negative impact on the Company’s financial performance; continuing consolidation in the financial services industry; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on our business, business practices and cost of operations; impact of adverse changes to our credit ratings from the major credit rating agencies; impact of failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber attacks; and other similar matters which could result in, among other things, confidential and/or proprietary information being disclosed or misused; adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; changes in interest rates on our net interest income and net interest margin; the effect of changes in the level of checking or savings account deposits on our funding costs and net interest margin; a recurrence of significant turbulence or disruption in the capital or financial markets, which could result in, among other things, a reduction in the availability of funding or increased funding costs, reduced investor demand for mortgage loans and declines in asset values and/or recognition of other-than-temporary impairment on securities held in our available-for-sale investment securities portfolio; the Company’s ability to retain key officers and employees; any future strategic acquisitions or divestitures; and other factors set forth in the Company’s public reports including its Annual Report on Form 10-K for the year ended December 31, 2017, and particularly the discussion of risk factors within that document. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, the Company’s results could differ materially from those expressed in, implied or projected by such forward-looking statements. The Company assumes no obligation to update such forward-looking statements. 2

Highlights of Second Quarter 2018 Results $ in millions, except per share data Current Quarter Q-o-Q Change Y-o-Y Change 2Q18 Earnings Net income Net income $ 172.3 (8)% 46% $172 million Adj.1 net income $ 172.3 5% 46% EPS $ 1.18 (8)% 45% 2Q18 Adj.1 EPS $ 1.18 4% 45% Diluted EPS NII $ 341.7 5% 18% $1.18 NIM 3.83% 10 bps 34 bps 1 Balance Sheet Tangible equity /share Loans $ 30,245 2% 11% $25.01 Deposits $ 32,776 0.5% 5% Record loans TBVPS1 $ 25.01 4% 14% $30.2 billion Credit Quality NCO ratio 0.15% 2 bps 19 bps Record deposits NPAs $ 103.5 (21)% (22)% $32.8 billion 1 See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 2Q18 Earnings Press Release. 1Q18 adjusted for the sale of DCB, which netted $22mm or $0.15/sh. 3

2Q18 Earnings Growth and Profitability Net Income and Diluted EPS Adjusted* Net Income and Diluted EPS $200 $187 $200 $172 $165 $172 $1.28 $1.18 $1.18 $133 $130 $127 $1.13 $118 $118 $0.91 $0.89 $0.87 $100 $85 $100 $0.81 $0.81 millions $ in $ in millions $ in $0.58 +10% -3% +30% +5% $ $ inmillions, except per share data $ inmillions, except per share data $— $— 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17* 4Q17* 1Q18* 2Q18 Net income Diluted EPS Adj.* net income Adj.* diluted EPS Adj.* net income growth . Profitability Ratios Solid 2Q18 results: attractive NIM expansion, revenue growth in excess of expenses, benign credit costs, 1.79% 1.84% 35% and lower tax rate. 1.44% 30% 1.36% 1.35% . Strong profitability supports dividend increase of 15%. 25% 19.7% 19.5% . New quarterly common dividend of $0.23/share. 16.1% 20% 15.3% 15.1% . Equivalent to 19% payout ratio of 2Q18 EPS. 15% 17.0% 17.0% . Continuing to grow capital through earnings. 13.0% 13.8% 13.0% 10% 0.00% 5% 2Q17 3Q17* 4Q17* 1Q18* 2Q18 Return on assets Return on equity Return on tang. eq. Adj* return on equity Adj.* return on tang. eq. * 3Q17, 4Q17 & 1Q18 ratios adjusted for non-GAAP items. * See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 2Q18 Earnings Press Release. 1Q18 adjusted for the gain on sale of DCB; 4Q17 adjusted for the impact of the enactment of the Tax Cuts and Jobs Act; and 3Q17 adjusted for the gain on sale of EWIS business. 4

2Q18 Record Loans of $30.2 billion 2Q18 EOP Loan Mix: $30.2 billion . EOP loan growth of 2% Q-o-Q (+9% LQA) . Avg. loan growth of 1.5% Q-o-Q (+6% LQA). . Largest avg. growth by category in SFR, $11.1 $7.4 following similar trend from 1Q18. 37% 24% . 2Q18 avg. loan yield of 4.95%, up by 26 bps Q-o-Q. . Yield expansion driven by upward repricing of $11.7 variable rate loans. 39% C&I CRE Consumer Average Loans Average Loan Yield 37% $29.2 $29.6 4.95% $28.6 $27.5 4.69% $26.7 4.52% 4.42% +6% 4.40% +8% +16% $ $ inbillions +12% 20 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 Average loans LQA average loan growth Loan portfolio composition: CRE = CRE, MFR, construction and land. Consumer = SFR, HELOC, and other consumer. 5

2Q18 Record Deposits of $32.8 billion 2Q18 EOP Deposit Mix: $32.8 billion . EOP deposit growth of 0.5% Q-o-Q (+ 2% LQA). . Avg. deposit growth of 0.3% Q-o-Q (+1% LQA). . Excluding $498mm of avg. Desert Community $7.9 $10.7 24% 33% Bank (DCB) deposits held-for-sale in 1Q18, 2Q18 avg. deposit growth would have been 7% LQA. $6.6 . 20% $7.6 2Q18 cost of total deposits: up 15 bps to 0.64%; 23% cost of IB deposits: up 20 bps to 0.96%. DDA MMDA IB Checking & Savings Time Average Deposits Total Deposit Cost 0.64% $32.3 $32.3 $32.4 $31.1 0.49% $30.2 0.43% +1% 0.40% +0.5% 0.36% +15% $ $ inbillions +11% 22 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 Average deposits LQA average deposit growth 6

2Q18 Fees & Other Operating Income Fees and Other Operating Income Q-o-Q Difference $50 Total Fees and Other Operating Income . 2Q18 noninterest income totaled $48.3mm, a $44.6 decrease from $74.4mm for 1Q18, which $41.9 1.9 4% $40.7 included a pre-tax gain of $31.5mm from the sale of $40 $38.4 $38.2 DCB branches. 6.1 3.6 6.6 15% 4.1 2.9 . Excluding the impact of all gains on sales, 2Q18 3.8 6.7 4.5 10% fees and other operating income of $44.6mm 4.7 6.7 $30 3.4 increased 17% Q-o-Q. 3.4 2.8 5.8 13% 3.0 . The increase in letters of credit fees and 5.9 6.0 foreign exchange income largely reflected 6.5 5.6 mark-to-market revaluations for foreign $20 $ in millions $ in 15.7 35% currency balance sheet items. 12.4 10.6 10.0 9.6 . Customer driven fees of $40.3mm increased by 3% Q-o-Q from $39.0mm; and increased by $10 3% Y-o-Y. . 10.3 10.4 10.3 10.4 10.1 23% Strong derivative and wealth management fees. . Weaker customer driven FX fees. $0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q18 Mix Branch fees LC fees & FX income Ancillary loan fees & other income Wealth management fees Derivative fees & other income Other fees & operating income 7

2Q18 Summary Income Statement $ in millions, except per share data 2Q18 1Q18 $ Change % Change Notable Items Adjusted net interest income $ 335.4 $ 321.5 $ 13.9 4 % Adjusted earnings growth: . ASC 310-30 discount 2Q18 net income of $172.3mm grew 5% 6.3 5.2 1.1 21 % accretion income from 1Q18 adj. net income of $164.9mm, Net interest income 341.7 326.7 15.0 5 % excluding the gain on sale of DCB branches. Fees & operating income 44.6 38.2 6.4 17 % . 2Q18 diluted EPS of $1.18 grew 4% Net gains on sales of fixed 3.7 4.8 (1.1) (23) % from 1Q18 adj. diluted EPS of $1.13, assets, loans & securities excluding the gain on sale of DCB Net gain on sale of business - 31.5 NM NM branches. Total noninterest income 48.3 74.4 (26.2) (35) % Tax-related items: . Adjusted noninterest expense 155.6 150.3 5.3 4 % 2Q18 effective tax rate was 13%. . Currently projecting full year 2018 Amortization of tax credit and other investments, and core 21.9 18.9 3.0 16 % effective tax rate of approx. 13%, deposit intangibles compared to 16% previously. . Total noninterest expense 177.4 169.1 8.3 5 % The reduction in the tax rate largely reflects a new tax credit investment Provision for credit losses 15.5 20.2 4.7 (23) % added in the quarter. Income tax expense 24.6 24.8 (0.2) (2) % Net income $ 172.3 $ 187.0 $ (14.7) (8) % Diluted EPS $ 1.18 $ 1.28 $ (0.10) (8) % Note: See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 2Q18 Earnings Press Release. 8

2Q18 Net Interest Income & Net Interest Margin Net Interest Income . 2Q18 NII of $341.7mm increased 5% Q-o-Q. $360 . $342 2Q18 GAAP NIM of 3.83% expanded by 10 bps Q-o-Q. $340 $320 $327 Rate shift: +23 bps from change in earning asset yields. $320 $303 . +18 bps from loan yields, $300 $290 +5% . +2% +3 bps from loan fees and discounts, $280 . +5% +2 bps from other earning assets. $ $ inmillions +5% $260 Rate shift: -13 bps from change in rates on funding costs. $240 . -12 bps from deposits, $220 . -1 bp from borrowings. $200 2Q17 3Q17 4Q17 1Q18 2Q18 Mix shift: +1 bp from earning asset mix shift, offset by Net Interest Income NII growth -1 bp from funding mix shift. 6% Average Loan Yield and Cost of Total Deposits Net Interest Margin relative to 4.95% Upper Range of Fed Funds Target Rate 4.69% 4.40% 4.42% 4.52% 3.83% 3.73% 3.57% 3.49% 3.52% 2.00% 1.75% 0.64% 1.50% 0.36% 0.40% 0.43% 0.49% 1.25% 1.25% 0% 3% 1.00% 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 Average loan yield Total cost of deposits Net Interest Margin Fed funds rate *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 2Q18 Earnings Press Release. 9

2Q18 PTPP Profitability and Efficiency PTPP Income & PTPP Profitability Ratio . Generating positive operating leverage: revenue growth outpacing expense growth. $234 . $240 $210 $213 $219 5.00% 2Q18 revenue up 5.5% Q-o-Q ex. DCB gain in 1Q. $198 . $180 4.00% 2Q18 adj.* noninterest expense up 3.5% Q-o-Q. . Pre-tax, pre-provision (PTPP) income growth: $120 3.00% $ $ inmillions 2.50% 2.27% 2.32% 2.27% 2.38% 2Q18 PTPP income of $234.4mm, up 7% Q-o-Q and up 18% Y-o-Y. $60 2.00% . PTPP profitability expansion: 5-qtr adj. PTPP $0 1.00% profitability ratio range of 2.27% to 2.50%. 2Q17 3Q17 4Q17 1Q18 2Q18 Adj.* PTPP income Adj.* PTPP profitability ratio Noninterest Expense & Efficiency Ratio . 2Q18 total noninterest expense: $177.4mm. . 2Q18 adj.* noninterest expense: $155.6mm. $160 $156 $152 $150 . Q-o-Q expense increases: consulting, travel, legal, computer software and recruiting. $140 $139 $140 . 55.0% Q-o-Q expense decreases: compensation and $ $ inmillions employee benefits, which were seasonally higher $120 in 1Q; deposit insurance premiums and 41.3% 41.6% 40.6% 39.8% 39.9% regulatory assessments. . $100 35.0% 2Q18 adj.* efficiency ratio: 39.9%, compared to 2Q17 3Q17 4Q17 1Q18 2Q18 40.6% in 1Q18. Adj.* noninterest expense Adj.* efficiency ratio *See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 2Q18 Earnings Press Release. 10

Asset Quality Metrics Allowance for Loan Losses Provision Expense & Annualized Net Charge-off* Ratio $35 $30.2 $29.0 1.00% $28 $25.5 2.50% $23.6 $46.3 $21 $40 $35.8 $27.5 0.50% $14 1.50% $ $ inbillions 1.12% 1.02% 0.99% 1.00% $ inmillions $14.2 0.15% 0.14% $7 0.08% 0.01% $0 0.50% $0 0.00% 12.31.15 12.31.16 12.31.17 06.30.18 2015 2016 2017 2018 YTD Gross loans HFI* ALLL / Gross loans HFI* Provision expense NCOs / Avg. loans HFI* Nonperforming Assets* . Allowance for loan losses to loans HFI was 1.00% as of 06.30.18, compared to 1.01% as of 03.31.18. $180 . $160 0.90% 2Q18 net charge-off ratio: 0.15% annualized, $140 $129 $130 $115 compared to 0.13% in 1Q18. $120 0.70% $104 . $100 Nonperforming assets were $103.5mm as of $80 0.50% 06.30.18, or 0.27% of total assets, down by 21% $ $ inmillions $60 from $131.0mm, or 0.35% of total assets as of $40 0.30% 0.40% 0.37% $20 03.31.18. 0.31% 0.27% $0 0.10% . 12.31.15 12.31.16 12.31.17 06.30.18 Nonperforming assets decreased Q-o-Q, largely driven by resolutions of C&I and construction and Nonperforming assets NPAs / Total assets land nonaccrual loans. * Nonperforming assets and net charge-offs exclude purchased credit impaired loans. HFI represents held-for-investment. 11

Strong Capital Ratios . Regulatory capital ratios increased by 73 bps to 75 bps year-to-date. . Current earnings levels support organic growth, capital ratio expansion, and an increase to the common dividend. . Common dividend increased by 15%: new quarterly dividend of $0.23/share or annualized run-rate of $0.92/share. EWBC's Capital Position 0.155 $25.01 $25.00 13.7% 12.9% 0.135 $23.13 12.2% 12.2% 11.4% 11.4% 0.115 10.5% 9.64% 10.0% 9.2% 9.12% 0.095 8.5% 7.0% 0.075 0.055 4.0% 0.035 $15.00 0.015 Tangible equity Tangible equity to CET1 risk-based Tier 1 risk-based Total risk-based Tier 1 leverage per share tangible assets ratio capital ratio capital ratio capital ratio capital ratio Basel III Fully Phased-in Minimum Regulatory Requirement EWBC 12.31.17 EWBC 06.30.18 Note: The Company’s June 30, 2018 regulatory capital ratios are preliminary. 12

Management Outlook: Full Year 2018 Outlook FY 2018 expectations change from 2018 YTD FY 2017 Earnings drivers compared to FY 2017 results prior quarter actual actual End of Period Loans . Increase at a percentage rate of Unchanged. $30.2 billion, $29.1 billion, approximately 10%. +8% YTD annualized +14% Y-o-Y NIM . Approximately 3.75% (excl. impact of Adjusted from 3.71% (ex. accretion), 3.42% (ex. accretion), ASC 310-30 discount accretion). previously guided +29 bps YTD +27 bps Y-o-Y . Approximately 3.80% (incl. accretion, range of 3.78% (w/ accretion), 3.48% (w/ accretion), which is estimated to add 5 bps). 3.65% to 3.75% +30 bps YTD +18 bps Y-o-Y (ex. accretion). Noninterest Expense . Increase at a percentage rate in the high Unchanged. $306 million, $567 million, (excl. tax credit single digits. +9% YTD annualized +5% Y-o-Y investment & core deposit intangible amortization) Provision for Credit . In the range of $70mm to $80mm. Unchanged. $36 million $46 million Losses Tax Items . Full year effective tax rate of Previously: Effective tax rate: Effective tax rate: approximately 13%. . Tax rate:16%. 12% 31% . . Tax credit investments, excluding low Tax credit invest, Tax credit investments, income housing, of $115mm with excl. low income excluding low income housing: $105mm. housing, of $110mm associated tax credit amortization of . $100mm above the line. Tax credit amort. with associated tax $85mm. credit amortization of . Reduction in the estimated tax rate $94mm. largely reflects the increase in tax credit investments. Interest Rates . Anticipate one additional fed funds rate Unchanged. Fed funds increased Fed funds increased increase of 25 bps in September of 2018. 50 bps YTD: 25 bps 75 bps in 2017: 25 bps each in March and each in March, June June. and December. 13

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) During the first quarter of 2017, the Company consummated a sale and leaseback transaction on a commercial property and recognized a pre-tax gain on sale of $71.7 million. During the first quarter of 2018, the Company sold its Desert Community Bank (“DCB”) branches and recognized a pre-tax gain on sale of $31.5 million. Management believes that presenting the computations of the adjusted net income, adjusted diluted earnings per common share, adjusted return on average assets and adjusted return on average equity that exclude the impact of after-tax gains on the sales of the commercial property and DCB branches (where applicable) provides clarity to financial statement users regarding the ongoing performance of the Company and allows comparability to prior periods. Three Months Ended June 30, 2018 March 31, 2018 June 30, 2017 Net income (a) $ 172,349 $ 187,032 $ 118,330 Less: Gain on sale of business, net of tax (1) (b) — (22,167) — Adjusted net income (c) $ 172,349 $ 164,865 $ 118,330 Diluted weighted average number of shares outstanding (d) 146,091 145,939 145,740 Diluted EPS (a)/(d) $ 1.18 $ 1.28 $ 0.81 Diluted EPS impact of gain on sale of business, net of tax (b)/(d) — (0.15) — Adjusted diluted EPS $ 1.18 $ 1.13 $ 0.81 Average total assets (e) $ 37,568,895 $ 37,381,098 $ 34,994,935 Average stockholders’ equity (f) $ 4,062,311 $ 3,922,926 $ 3,637,695 Return on average assets (2) (a)/(e) 1.84 % 2.03 % 1.36 % Adjusted return on average assets (2) (c)/(e) 1.84 % 1.79 % 1.36 % Return on average equity (2) (a)/(f) 17.02 % 19.34 % 13.05 % Adjusted return on average equity (2) (c)/(f) 17.02 % 17.04 % 13.05 % (1) Statutory rate of 29.56% was applied for the three months ended March 31, 2018, and the three months ended June 30, 2018. Statutory rate of 42.05% was applied for the three months ended June 30, 2017. (2) Annualized. 15

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Adjusted efficiency ratio represents adjusted noninterest expense divided by adjusted revenue. Adjusted pre-tax, pre-provision profitability ratio represents the aggregate of adjusted revenue less adjusted noninterest expense, divided by average total assets. Adjusted revenue represents the aggregate of net interest income and adjusted noninterest income, where adjusted noninterest income excludes the gains on the sales of the commercial property and DCB branches (where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, and the amortization of core deposit intangibles (where applicable). Management believes that the measures and ratios presented below provide clarity to financial statement users regarding the ongoing performance of the Company and allow comparability to prior periods. Three Months Ended June 30, 2018 March 31, 2018 June 30, 2017 Net interest income before provision for credit losses (a) $ 341,679 $ 326,693 $ 290,091 Total noninterest income 48,268 74,444 47,244 Total revenue (b) 389,947 401,137 337,335 Noninterest income 48,268 74,444 47,244 Less: Gain on sale of business — (31,470) — Adjusted noninterest income (c) $ 48,268 $ 42,974 $ 47,244 Adjusted revenue (a)+(c) = (d) $ 389,947 $ 369,667 $ 337,335 Total noninterest expense (e) $ 177,419 $ 169,135 $ 168,965 Less: Amortization of tax credit and other investments (20,481) (17,400) (27,872) Amortization of core deposit intangibles (1,373) (1,485) (1,762) Adjusted noninterest expense (f) $ 155,565 $ 150,250 $ 139,331 Efficiency ratio (e)/(b) 45.50 % 42.16 % 50.09 % Adjusted efficiency ratio (f)/(d) 39.89 % 40.64 % 41.30 % Adjusted pre-tax, pre-provision income (d)-(f) = (g) $ 234,382 $ 219,417 $ 198,004 Average total assets (h) $ 37,568,895 $ 37,381,098 $ 34,994,935 Adjusted pre-tax, pre-provision profitability ratio (1) (g)/(h) 2.50 % 2.38 % 2.27 % Adjusted noninterest expense (1)/average assets (f)/(h) 1.66 % 1.63 % 1.60 % (1) Annualized. 16

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) Management believes that presenting the adjusted average loan yield and adjusted net interest margin that exclude the ASC 310-30 discount accretion impact provides clarity to financial statement users regarding the change in loan contractual yields and allows comparability to prior periods. Three Months Ended Yield on Average Loans June 30, 2018 March 31, 2018 June 30, 2017 Interest income on loans (a) $ 365,555 $ 337,904 $ 293,039 Less: ASC 310-30 discount accretion income (6,299) (5,200) (6,261) Adjusted interest income on loans (b) $ 359,256 $ 332,704 $ 286,778 Average loans (c) $ 29,646,766 $ 29,211,906 $ 26,698,787 Add: ASC 310-30 discount 29,997 34,059 45,398 Adjusted average loans (d) $ 29,676,763 $ 29,245,965 $ 26,744,185 Average loan yield (1) (a)/(c) 4.95 % 4.69 % 4.40 % Adjusted average loan yield (1) (b)/(d) 4.86 % 4.61 % 4.30 % Net Interest Margin Net interest income (e) $ 341,679 $ 326,693 $ 290,091 Less: ASC 310-30 discount accretion income (6,299) (5,200) (6,261) Adjusted net interest income (f) $ 335,380 $ 321,493 $ 283,830 Average interest-earning assets (g) $ 35,767,808 $ 35,513,663 $ 33,295,012 Add: ASC 310-30 discount 29,997 34,059 45,398 Adjusted average interest-earning assets (h) $ 35,797,805 $ 35,547,722 $ 33,340,410 Net interest margin (1) (e)/(g) 3.83 % 3.73 % 3.49 % Adjusted net interest margin (1) (f)/(h) 3.76 % 3.67 % 3.41 % (1) Annualized. 17

Appendix: GAAP to Non-GAAP Reconciliation (cont’d) EAST WEST BANCORP, INC. AND SUBSIDIARIES GAAP TO NON-GAAP RECONCILIATION ($ in thousands) (unaudited) The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. Tangible equity and tangible equity to tangible assets ratio are non- GAAP financial measures. Tangible equity and tangible assets represent stockholders’ equity and total assets, respectively, which have been reduced by goodwill and other intangible assets. Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. June 30, 2018 March 31, 2018 June 30, 2017 Stockholders’ equity (a) $ 4,114,284 $ 3,978,755 $ 3,670,261 Less: Goodwill (465,547) (465,547) (469,433) Other intangible assets (1) (25,029) (26,196) (32,012) Tangible equity (b) $ 3,623,708 $ 3,487,012 $ 3,168,816 Total assets (c) $ 38,072,954 $ 37,693,158 $ 35,917,617 Less: Goodwill (465,547) (465,547) (469,433) Other intangible assets (1) (25,029) (26,196) (32,012) Tangible assets (d) $ 37,582,378 $ 37,201,415 $ 35,416,172 Total stockholders’ equity to total assets ratio (a)/(c) 10.81 % 10.56 % 10.22 % Tangible equity to tangible assets ratio (b)/(d) 9.64 % 9.37 % 8.95 % Adjusted return on average tangible equity represents adjusted tangible net income divided by average tangible equity. Adjusted tangible net income excludes the after-tax effects of the amortization of core deposit intangibles and mortgage servicing assets and the after-tax gains on the sales of the commercial property and DCB branches (where applicable). Given that the use of such measures and ratios is more prevalent in the banking industry, and such measures and ratios are used by banking regulators and analysts, the Company has included them below for discussion. Three Months Ended June 30, 2018 March 31, 2018 June 30, 2017 Net Income $ 172,349 $ 187,032 $ 118,330 Add: Amortization of core deposit intangibles, net of tax (2) 967 1,046 1,021 Amortization of mortgage servicing assets, net of tax (2) 305 333 241 Tangible net income (e) $ 173,621 $ 188,411 $ 119,592 Less: Gain on sale of business, net of tax (2) — (22,167) — Adjusted tangible net income (f) $ 173,621 $ 166,244 $ 119,592 Average stockholders’ equity $ 4,062,311 $ 3,922,926 $ 3,637,695 Less: Average goodwill (465,547) (468,785) (469,433) Average other intangible assets (1) (25,648) (28,102) (33,101) Average tangible equity (g) $ 3,571,116 $ 3,426,039 $ 3,135,161 Return on average tangible equity (3) (e)/(g) 19.50 % 22.30 % 15.30 % Adjusted return on average tangible equity (3) (f)/(g) 19.50 % 19.68 % 15.30 % (1) Includes core deposit intangibles and mortgage servicing assets. (2) Statutory rate of 29.56% was applied for the three months ended March 31, 2018, and the three months ended June 30, 2018. Statutory rate of 42.05% was applied for the three months ended June 30, 2017 (3) Annualized. 18