The Company uses derivative instruments to manage exposure to market risk, primarily interest rate and foreign currency risks, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, as well as the Bank’s investment in East West Bank (China) Limited. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements of the Company’s 2024 Form 10-K.

The following table presents the notional amounts and fair values of the Company’s derivatives as of March 31, 2025 and December 31, 2024. Certain derivative contracts are cleared through central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values of $12 million and $44 million, respectively, as of March 31, 2025. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $17 million and $15 million, respectively, as of December 31, 2024. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.



	March 31, 2025								December 31, 2024
			Fair Value								Fair Value
($ in thousands)	Notional Amount		Assets			Liabilities			Notional Amount		Assets			Liabilities
Derivatives designated as hedging instruments:


Cash flow hedges:
Interest rate contracts	$	4,250,000	$	25,982		$	12,153		$	5,250,000	$	5,647		$	35,211


Total derivatives designated as hedging instruments	$	4,250,000	$	25,982		$	12,153		$	5,250,000	$	5,647		$	35,211
Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,147,077	$	325,232		$	324,030		$	17,005,381	$	379,664		$	378,961
Commodity contracts (1)	—		122,866			81,862			—		48,499			45,328
Foreign exchange contracts	4,509,409		39,381			30,901			5,201,460		89,083			71,254
Credit contracts (2)	190,871		18			19			168,999		1			12
Equity contracts	—		418		(3)	15,119		(4)	—		239		(3)	15,119		(4)
Total derivatives not designated as hedging instruments	$	21,847,357	$	487,915		$	451,931		$	22,375,840	$	517,486		$	510,674
Gross derivative assets/liabilities			$	513,897		$	464,084				$	523,133		$	545,885
Less: Master netting agreements			(90,876)			(90,876)					(111,124)			(111,124)
Less: Cash collateral received			(238,687)			(9,851)					(316,168)			(1,160)
Net derivative assets/liabilities			$	184,334		$	363,357				$	95,841		$	433,601

(1)The notional amount of the Company’s commodity contracts totaled 19 million barrels of crude oil and 426 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of March 31, 2025. In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.

Cash Flow Hedges — The Company uses interest rate swaps and collars to hedge the variability in the interest amount received on certain floating-rate commercial loans due to changes in the contractually specified interest rates. As of March 31, 2025, interest rate contracts in notional amounts of $4.3 billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments. Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and within the same income statement line item as the hedged cash flows. Considering the interest rates, yield curve and notional amount as of March 31, 2025, the Company expects to reclassify an estimated $5 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months.

The following table presents the pre-tax changes in AOCI from cash flow hedges for the three months ended March 31, 2025 and 2024. The after-tax impact of cash flow hedges on AOCI is shown in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-Q.

Net Investment Hedges — The Company enters into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi (“RMB”). There was no active net investment hedge during the three months ended March 31, 2025. The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three months ended March 31, 2025 and 2024:

Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk. The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers. A majority of the foreign exchange contracts had original maturities of one year or less as of both March 31, 2025 and December 31, 2024.



	March 31, 2025						December 31, 2024
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,906,842	$	30,939	$	287,307	$	6,854,372	$	11,828	$	361,256
Written options	1,477,752		—		4,616		1,458,428		—		4,953
Collars and corridors	188,944		194		253		181,039		80		440
Subtotal	8,573,538		31,133		292,176		8,493,839		11,908		366,649
Foreign exchange contracts:
Forwards and spot	742,154		5,191		8,829		996,486		11,693		24,201
Swaps	1,241,537		16,106		2,539		1,504,469		16,117		25,366
Written options	161,165		—		2,433		—		—		—
Subtotal	2,144,856		21,297		13,801		2,500,955		27,810		49,567
Total	$	10,718,394	$	52,430	$	305,977	$	10,994,794	$	39,718	$	416,216
Economic hedges:
Interest rate contracts:
Swaps	$	6,906,842	$	289,196	$	31,653	$	6,872,075	$	362,323	$	12,228
Purchased options	1,477,752		4,649		—		1,458,428		4,990		—

Collars and corridors	188,944		254		201		181,039		443		84
Subtotal	8,573,538		294,099		31,854		8,511,542		367,756		12,312
Foreign exchange contracts:
Forwards and spot	106,076		539		257		86,750		2,318		1,738
Swaps	2,097,312		15,112		16,843		2,613,755		58,955		19,949
Purchased options	161,165		2,433		—		—		—		—
Subtotal	2,364,553		18,084		17,100		2,700,505		61,273		21,687
Total	$	10,938,091	$	312,183	$	48,954	$	11,212,047	$	429,029	$	33,999

The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of March 31, 2025 and December 31, 2024:



	March 31, 2025						December 31, 2024
			Fair Value						Fair Value
($ and unit in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	5,365	Barrels	$	3,321	$	8,138	4,830	Barrels	$	4,682	$	6,874
Collars	4,292	Barrels	1,293		2,685		5,477	Barrels	1,604		3,362

Subtotal	9,657	Barrels	4,614		10,823		10,307	Barrels	6,286		10,236
Natural gas:
Swaps	132,980	MMBTUs	72,251		2,109		141,736	MMBTUs	13,095		17,708
Collars	81,148	MMBTUs	39,052		120		62,045	MMBTUs	6,061		4,556
Written options	1,234	MMBTUs	219		—		1,234	MMBTUs	167		—
Subtotal	215,362	MMBTUs	111,522		2,229		205,015	MMBTUs	19,323		22,264
Total			$	116,136	$	13,052			$	25,609	$	32,500
Economic hedges:
Commodity contracts:
Crude oil:
Swaps	5,365	Barrels	$	4,718	$	2,813	4,830	Barrels	$	4,479	$	3,893
Collars	4,292	Barrels	627		419		5,477	Barrels	1,547		76

Subtotal	9,657	Barrels	5,345		3,232		10,307	Barrels	6,026		3,969
Natural gas:
Swaps	129,568	MMBTUs	1,265		38,435		139,136	MMBTUs	13,323		5,056
Collars	79,563	MMBTUs	120		26,939		61,341	MMBTUs	3,541		3,650
Purchased options	1,234	MMBTUs	—		204		1,234	MMBTUs	—		153
Subtotal	210,365	MMBTUs	1,385		65,578		201,711	MMBTUs	16,864		8,859
Total			$	6,730	$	68,810			$	22,890	$	12,828

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndicated loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. Assuming the underlying borrowers referenced in the interest rate contracts defaulted, the maximum exposure in the credit protection sold RPAs would be $321 thousand and $170 thousand as of March 31, 2025 and December 31, 2024, respectively.



	March 31, 2025						December 31, 2024
	Notional Amount		Fair Value				Notional Amount		Fair Value
($ in thousands)			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold (1)	$	140,099	$	—	$	19	$	133,174	$	—	$	12
RPAs — protection purchased	50,772		18		—		35,825		1		—
Total RPAs	$	190,871	$	18	$	19	$	168,999	$	1	$	12

Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of the borrowers’ companies, which are mainly in the technology and life sciences sectors. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. In connection with the Company’s investment in Rayliant during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration. The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets during the future performance period. For additional information on these equity contracts, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q.



		Three Months Ended March 31,
($ in thousands)	Classification on Consolidated Statement of Income	2025		2024
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative (losses) income	$	(1,402)	$	484
Foreign exchange contracts	Foreign exchange income	13,238		12,780
Credit contracts	Customer derivative income (losses)	10		(5)
Equity contracts - warrants	Lending and loan servicing fees	179		(6)

Commodity contracts	Customer derivative (losses) income	(78)		134
Net gains		$	11,947	$	13,387

Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. Such an event primarily relates to a downgrade of the credit rating of East West Bank to below investment grade. As of March 31, 2025, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $16 million, for which $14 million collateral was posted to cover these positions. In comparison, as of December 31, 2024, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $1 million, for which $1 million collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, the Company would have been required to post $2 million and minimal additional collateral as of March 31, 2025 and December 31, 2024, respectively.

The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross fair values of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown:



($ in thousands)	As of March 31, 2025

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (1)		Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)		Net Amount
Derivative assets	$	513,897	$	(90,876)	$	(238,687)	$	184,334	$	(36,436)	$	147,898

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (2)		Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)		Net Amount
Derivative liabilities	$	464,084	$	(90,876)	$	(9,851)	$	363,357	$	(22,878)	$	340,479



($ in thousands)	As of December 31, 2024

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (1)		Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)		Net Amount
Derivative assets	$	523,133	$	(111,124)	$	(316,168)	$	95,841	$	(55,222)	$	40,619

			Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
	Gross Amounts Recognized (2)		Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)		Net Amount
Derivative liabilities	$	545,885	$	(111,124)	$	(1,160)	$	433,601	$	—	$	433,601

(3)Gross cash collateral received under master netting arrangements or similar agreements was $251 million and $322 million as of March 31, 2025 and December 31, 2024, respectively. Of the gross cash collateral received, $239 million and $316 million were used to offset derivative assets as of March 31, 2025 and December 31, 2024, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements was $11 million and $1 million as of March 31, 2025 and December 31, 2024, respectively. Of the gross cash collateral pledged, $10 million and $1 million were used to offset derivative liabilities as of March 31, 2025 and December 31, 2024, respectively.

(5)Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires the disclosure of such amounts.

In addition to the amounts included in the tables above, the Company has balance sheet netting related to resale agreements. Refer to Note 3 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-Q for additional information. Refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for fair value measurement disclosures on derivatives.