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Fair Value Measurement and Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Schedule of Financial Assets (Liabilities) Measured at Fair Value on a Recurring Basis
The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of June 30, 2025
($ in thousands)Level 1Level 2Level 3Total
Fair Value
AFS debt securities:
U.S. Treasury securities$731,062 $— $— $731,062 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 270,292 — 270,292 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1):
Commercial mortgage-backed securities— 375,165 — 375,165 
Residential mortgage-backed securities— 9,389,745 — 9,389,745 
Municipal securities— 239,197 — 239,197 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 224,596 — 224,596 
Residential mortgage-backed securities— 411,734 — 411,734 
Corporate debt securities— 534,644 — 534,644 
Foreign government bonds— 235,343 — 235,343 
Asset-backed securities— 32,643 — 32,643 
Collateralized loan obligations (“CLOs”)— 44,492 — 44,492 
Total AFS debt securities$731,062 $11,757,851 $— $12,488,913 
Affordable housing partnership, tax credit and CRA investments, net:
Equity securities$21,488 $4,281 $— $25,769 
Total affordable housing partnership, tax credit and CRA investments, net$21,488 $4,281 $— $25,769 
Other assets:
Equity securities
$638 $— $— $638 
Total other assets$638 $— $— $638 
Derivative assets:
Interest rate contracts$— $332,718 $— $332,718 
Foreign exchange contracts— 68,807 — 68,807 
Credit contracts— 17 — 17 
Equity contracts— — 377 377 
Commodity contracts— 66,137 — 66,137 
Gross derivative assets$— $467,679 $377 $468,056 
Netting adjustments (2)
$— $(313,332)$— $(313,332)
Net derivative assets$— $154,347 $377 $154,724 
Derivative liabilities:
Interest rate contracts$— $294,142 $— $294,142 
Foreign exchange contracts— 63,162 — 63,162 
Credit contracts— 31 — 31 
Equity contracts (3)
— — 15,119 15,119 
Commodity contracts— 63,992 — 63,992 
Gross derivative liabilities$— $421,327 $15,119 $436,446 
Netting adjustments (2)
$— $(141,267)$— $(141,267)
Net derivative liabilities$— $280,060 $15,119 $295,179 
Refer to table footnotes on the following page.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2024
($ in thousands)Level 1Level 2Level 3Total
Fair Value
AFS debt securities:
U.S. Treasury securities$638,265 $— $— $638,265 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 262,587 — 262,587 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (1):
Commercial mortgage-backed securities— 426,214 — 426,214 
Residential mortgage-backed securities— 7,738,260 — 7,738,260 
Municipal securities— 250,153 — 250,153 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 258,470 — 258,470 
Residential mortgage-backed securities— 433,608 — 433,608 
Corporate debt securities— 526,166 — 526,166 
Foreign government bonds— 233,880 — 233,880 
Asset-backed securities— 34,715 — 34,715 
CLOs— 44,493 — 44,493 
Total AFS debt securities $638,265 $10,208,546 $— $10,846,811 
Affordable housing partnership, tax credit and CRA investments, net:
Equity securities$20,817 $4,204 $— $25,021 
Total affordable housing partnership, tax credit and CRA investments, net
$20,817 $4,204 $— $25,021 
Other assets:
Equity securities
$568 $— $— $568 
Total other assets$568 $— $— $568 
Derivative assets:
Interest rate contracts$— $385,311 $— $385,311 
Foreign exchange contracts— 89,083 — 89,083 
Credit contracts— 1 — 1 
Equity contracts— — 239 239 
Commodity contracts— 48,499 — 48,499 
Gross derivative assets$— $522,894 $239 $523,133 
Netting adjustments (2)
$— $(427,292)$— $(427,292)
Net derivative assets$— $95,602 $239 $95,841 
Derivative liabilities:
Interest rate contracts$— $414,172 $— $414,172 
Foreign exchange contracts— 71,254 — 71,254 
Equity contracts (3)
— — 15,119 15,119 
Credit contracts— 12 — 12 
Commodity contracts— 45,328 — 45,328 
Gross derivative liabilities$— $530,766 $15,119 $545,885 
Netting adjustments (2)
$— $(112,284)$— $(112,284)
Net derivative liabilities$— $418,482 $15,119 $433,601 
(1)Includes Government National Mortgage Association (“GNMA”) AFS debt securities totaling $8.9 billion and $7.2 billion of fair value as of June 30, 2025 and December 31, 2024, respectively.
(2)Represents the balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
(3)Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.
Schedule of Reconciliation of the Beginning and Ending Balances of Equity Contracts Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3) The following table provides a reconciliation of the beginning and ending balances of the warrant equity contracts for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2025202420252024
Equity contracts
Beginning balance$418 $330 $239 $336 
Total losses included in earnings (1)
(41)(90)(118)(96)
Issuances (2)
— — 256 — 
Ending balance$377 $240 $377 $240 
(1)Includes unrealized losses recorded in Lending and loan servicing fees on the Consolidated Statement of Income.
(2)Included in Lending and loan servicing fees on the Consolidated Statement of Income.
Schedule of Quantitative Information About Significant Unobservable Inputs Used in the Valuation of level 3 Fair Value Measurements
The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of June 30, 2025 and December 31, 2024. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change.
($ in thousands)Fair Value Measurements (Level 3)Valuation TechniqueUnobservable InputsRange of InputsWeighted-Average of Inputs
June 30, 2025
Derivative assets:
Equity contracts$377 Black-Scholes option pricing modelEquity volatility
36% — 58%
44%
 (1)
Liquidity discount47%47%
Derivative liabilities:
Equity contracts (2)
$15,119 Internal model
Payout % based on operating revenue and operating EBITDA of investee
84%84%
December 31, 2024
Derivative assets:
Equity contracts$239 Black-Scholes option pricing modelEquity volatility
38% — 57%
50%
 (1)
Liquidity discount47%47%
Derivative liabilities:
Equity contracts (2)
$15,119 Internal model
Payout % based on operating revenue and operating EBITDA of investee
84%84%
(1)Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2025 and December 31, 2024.
(2)Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in an investment.
The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of June 30, 2025 and December 31, 2024:
($ in thousands)Fair Value Measurements (Level 3)Valuation TechniquesUnobservable InputsRange of InputsWeighted-Average of Inputs
June 30, 2025
Loans held-for-investment$8,253 Fair value of collateralDiscount
55% — 75%
69%
(1)
$3,617 Fair value of collateralContract value
NM
NM
$14,578 Fair value of propertySelling cost
8% — 20%
14%
(1)
December 31, 2024
Loans held-for-investment$910 Fair value of collateralDiscount
50%
50%
$22,993 Fair value of collateralContract valueNMNM
$37,583 Fair value of propertySelling cost
8% — 20%
10%
(1)
Affordable housing partnership, tax credit and CRA investments, net$5,000 Individual analysis of each investmentExpected future tax benefits and distributionsNMNM
OREO$19,386 Fair value of propertySelling cost8%8%
NM — Not meaningful.
(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2025 and December 31, 2024.
Schedule of Carrying Amounts of Assets That Were Still Held and Had Fair Value Changes Measured on a Nonrecurring Basis
The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of June 30, 2025 and December 31, 2024:
Assets Measured at Fair Value on a Nonrecurring Basis
as of June 30, 2025
($ in thousands)Level 1Level 2Level 3Fair Value Measurements
Loans held-for-investment:
Commercial:
Commercial and industrial (“C&I”)$— $— $18,582 $18,582 
Commercial real estate (“CRE”):
CRE— — 7,866 7,866 
Total loans held-for-investment$— $— $26,448 $26,448 
Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2024
($ in thousands)Level 1Level 2Level 3Fair Value Measurements
Loans held-for-investment:
Commercial:
C&I$— $— $48,384 $48,384 
CRE:
CRE— — 1,678 1,678 
 Construction and land
— — 11,316 11,316 
Total commercial— — 61,378 61,378 
Consumer:
Residential mortgage:
Single-family residential— — 108 108 
Total consumer— — 108 108 
Total loans held-for-investment$— $— $61,486 $61,486 
Affordable housing partnership, tax credit and CRA investments, net$— $— $5,000 $5,000 
OREO (1)
$— $— $19,386 $19,386 
(1)Represents the carrying value of OREO property that was written down after its initial classification as OREO and included in Other assets on the Consolidated Balance Sheet.
Schedule of (Decrease) Increase in Fair Value of Assets for which a Nonrecurring Fair Value Adjustment Has Been Recognized
The following table presents the change in the fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2025202420252024
Loans held-for-investment:
Commercial:
C&I$(11,327)$(14,764)$(13,560)$(24,769)
CRE:
CRE(6,046)(2,260)(19,885)(2,260)
Construction and land— (920)— (2,144)
Total commercial(17,373)(17,944)(33,445)(29,173)
Consumer:
Residential mortgage:
Single-family residential— (23)— (1,407)
Total consumer— (23)— (1,407)
Total loans held-for-investment$(17,373)$(17,967)$(33,445)$(30,580)
OREO$— $(2,576)$— $(2,576)
Schedule of the Carrying and Fair Value Estimates Per the Fair Value Hierarchy of Financial Instruments Measured on a Nonrecurring Basis
The following tables present the fair value estimates for financial instruments as of June 30, 2025 and December 31, 2024, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets, and accrued interest payable which is included in Accrued expenses and other liabilities. These financial instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet.
June 30, 2025
($ in thousands)Carrying AmountLevel 1Level 2Level 3Estimated Fair Value
Financial assets:
Cash and cash equivalents$4,409,941 $4,409,941 $— $— $4,409,941 
Interest-bearing deposits with banks$104,535 $— $104,535 $— $104,535 
Resale agreements$425,000 $— $340,586 $— $340,586 
HTM debt securities$2,892,982 $514,767 $1,922,480 $— $2,437,247 
Restricted equity securities, at cost$165,989 $— $165,989 $— $165,989 
Loans held-for-sale$11,873 $— $11,873 $— $11,873 
Loans held-for-investment, net$54,200,768 $— $— $52,607,452 $52,607,452 
Mortgage servicing rights$4,628 $— $— $7,971 $7,971 
Accrued interest receivable$311,264 $— $311,264 $— $311,264 
Financial liabilities:
Demand, checking, savings and money market deposits$40,718,153 $— $40,718,153 $— $40,718,153 
Time deposits$24,311,340 $— $24,305,849 $— $24,305,849 
FHLB advances$3,500,000 $— $3,503,363 $— $3,503,363 
Long-term debt$32,158 $— $31,293 $— $31,293 
Accrued interest payable$61,177 $— $61,177 $— $61,177 
December 31, 2024
($ in thousands)Carrying AmountLevel 1Level 2Level 3Estimated Fair Value
Financial assets:
Cash and cash equivalents$5,250,742 $5,250,742 $— $— $5,250,742 
Interest-bearing deposits with banks$48,198 $— $48,198 $— $48,198 
Resale agreements$425,000 $— $329,769 $— $329,769 
HTM debt securities$2,917,413 $499,858 $1,887,896 $— $2,387,754 
Restricted equity securities, at cost$165,259 $— $165,259 $— $165,259 
Loans held-for-investment, net$53,024,585 $— $— $51,328,254 $51,328,254 
Mortgage servicing rights$5,234 $— $— $8,822 $8,822 
Accrued interest receivable$316,392 $— $316,392 $— $316,392 
Financial liabilities:
Demand, checking, savings and money market deposits$39,959,251 $— $39,959,251 $— $39,959,251 
Time deposits$23,215,772 $— $23,225,317 $— $23,225,317 
FHLB advances$3,500,000 $— $3,497,953 $— $3,497,953 
Long-term debt$32,001 $— $31,246 $— $31,246 
Accrued interest payable$61,950 $— $61,950 $— $61,950