EWBC

MKT CAP $18BP/E 12.6DIV YIELD 2.13%FCF YIELD —REV TTM —NET INCOME $1.4B +21.2%NET CASH $4.9B52W 99.52 – 136.60SEC XBRL · TTM TO Invalid Date

How EWBC rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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Item 1A. — Risk Factors — Risks Related to Geographic and Political Uncertainties and — Risks Related to Financial Matters in this Form 10-K.
Financial Review Our MD&A analyzes the financial condition and results of operations of the Company for 2025 and 2024.
To review our financial condition and results of operations for 2024 and a comparison between 2024 and 2023 results, see Item 7.
MD&A of our 2024 Form 10-K, which was filed with the SEC on February 28, 2025.
($ and shares in thousands, except per share, and ratio data) 2025 2024 Summary of operations: Net interest income before provision for credit losses $ 2,552,629 $ 2,278,716 Noninterest income 379,227 335,218 Total revenue 2,931,856 2,613,934 Provision for credit losses 160,000 174,000 Noninterest expense 1,046,396 958,073 Income before income taxes 1,725,460 1,481,861 Income tax expense 400,272 316,275 Net income $ 1,325,188 $ 1,165,586 Per share: Basic earnings $ 9.58 $ 8.39 Diluted earnings $ 9.52 $ 8.33 Dividends declared $ 2.40 $ 2.20 Weighted-average number of shares outstanding: Basic 138,342 138,898 Diluted 139,130 139,958 Performance metrics: Return on average assets (“ROA”) 1.70 % 1.60 % Return on average common equity (“ROAE”) 16.01 % 15.93 % Return on average tangible common equity (“ROATCE”) (1) 16.99 % 17.05 % Common dividend payout ratio 25.30 % 26.58 % Net interest margin 3.41 % 3.27 % Efficiency ratio (2) 35.69 % 36.65 % At year end: Total assets $ 80,434,997 $ 75,976,475 Total loans $ 56,899,148 $ 53,726,637 Total deposits $ 67,082,701 $ 63,175,023 Common shares outstanding at period-end 137,579 138,437 Book value per share $ 64.68 $ 55.79 Tangible book value per share (1) $ 61.27 $ 52.39 (1) For additional information regarding the reconciliation of these non-U.S.
The Company’s 2025 net income was $1.3 billion, a $160 million or 14% increase from 2024.
The increase was primarily driven by higher net interest income before provision for credit losses, increased noninterest income and a decrease in provision for credit losses, partially offset by higher noninterest expense and income tax expense.
Noteworthy items about the Company’s performance for 2025 included: • Net interest income and net interest margin.
Year-over-year net interest income before provision for credit loss es increased $274 million or 12% to $2.6 billion in 2025.
Full year 2025 net interest margin was 3.41%, a 14 bp increase year-over-year. • Earnings per share growth.
Full year 2025 basic EPS and diluted EPS both expanded 14% to $9.58 and $9.52, respectively. • Profitability ratios.
Full year 2025 ROA and ROAE of 1.70% and 16.01%, respectively, expanded 10 bps and 8 bps, respectively, year-over-year.
For additional information regarding the reconciliation of non-GAAP financial measures, refer to Item 7.
MD&A — Reconciliation of GAAP to Non-GAAP Financial Measures in this Form 10-K. • Efficiency ratio.
The efficiency ratio was 35.69% in 2025, a 96 bp improvement compared with 2024.
The improvement in the efficiency ratio primarily reflected a year-over-year increase in net interest income before provision for credit losses. • Asset growth.
Total assets reached $80.4 billion as of December 31, 2025, an increase of $4.5 billion or 6% year-over-year, primarily driven by loan growth of $3.0 billion or 6%, and an increase in AFS debt securities of $2.4 billion or 22%. • Deposit growth.
Total deposits were $67.1 billion as of December 31, 2025, an increase of $3.9 billion or 6% year-over-year, primarily reflecting growth in time deposits and noninterest-bearing demand deposits. • Capital levels.
Stockholders’ equity was $8.9 billion as of December 31, 2025, up $1.2 billion or 15%, from December 31, 2024.
Book value per share of $64.68 as of December 31, 2025, increased $8.89 or 16% from December 31, 2024.
Tangible book value per share of $61.27 as of December 31, 2025, increased $8.88 or 17% from December 31, 2024.
Net interest income and net interest margin for 2025 increased year-over-year.
The $274 million or 12% year-over-year increase in 2025 net interest income is primarily due to lower interest-bearing deposit funding costs and increases in the average balances of deposits, AFS debt securities and loans, partially offset by lower loan yields.
The 14 bps year-over-year increase in 2025 net interest margin primarily reflected lower interest-bearing deposit costs, partially offset by an increase in AFS securities and decreases in the yield and balances of interest-bearing cash and deposits with banks.
Average interest-earning assets increased $5.2 billion or 7% to $74.9 billion in 2025.
The year-over-year increase in average interest-earning assets primarily reflected increases in AFS debt securities and loan growth.
The yield on average interest-earning assets was 5.73% in 2025, a decrease of 28 bps from 2024.
The year-over-year decrease in the yield on average interest-earning assets primarily reflected the impact of lower benchmark interest rates of the loan portfolio.
The average loan yield was 6.40% in 2025, a decrease of 27 bps from 2024.
The year-over-year decrease in the average loan yield primarily reflected the loan portfolio’s sensitivity to lower benchmark interest rates.
Excluding the $32 million discount accretion and interest recoveries from the full payment on purchased credit impaired and workout loans from the 2025 loans’ interest income, the adjusted average loan yield for 2025 was 6.34%, compared with 6.67% in 2024.
Adjusted average loan yield is a non-GAAP financial ratio.
For additional details, refer to Item 7.
Approximately 58% of loans held-for-investment were variable-rate as of both December 31, 2025 and 2024.
Average deposits of $64.8 billion in 2025, increased $5.2 billion or 9% from 2024.
Average noninterest-bearing deposits of $15.6 billion in 2025, increased $799 million or 5% from 2024.
Average noninterest-bearing deposits made up 24% and 25% of average deposits in 2025 and 2024, respectively.
The average cost of deposits was 2.46% in 2025, a decrease of 42 bps from 2024.
The average cost of interest-bearing deposits was 3.24% in 2025, a decrease of 59 bps from 2024.
These year-over-year decreases primarily reflected the impacts of lower benchmark interest rates and the Company’s efforts to reduce deposit costs.

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Financial Review Our MD&A analyzes the financial condition and results of operations of the Company for 2024 and 2023.
To review our financial condition and results of operations for 2023 and a comparison between 2023 and 2022 results, see Item 7.
MD&A of our 2023 Form 10-K, which was filed with the SEC on February 29, 2024.
($ and shares in thousands, except per share, and ratio data) 2024 2023 Summary of operations: Net interest income before provision for credit losses $ 2,278,716 $ 2,312,254 Noninterest income 335,218 295,264 Total revenue 2,613,934 2,607,518 Provision for credit losses 174,000 125,000 Noninterest expense 958,073 1,022,748 Income before income taxes 1,481,861 1,459,770 Income tax expense 316,275 298,609 Net income $ 1,165,586 $ 1,161,161 Per share: Basic earnings $ 8.39 $ 8.23 Diluted earnings $ 8.33 $ 8.18 Dividends declared $ 2.20 $ 1.92 Weighted-average number of shares outstanding: Basic 138,898 141,164 Diluted 139,958 141,902 Performance metrics: Return on average assets (“ROA”) 1.60 % 1.71 % Return on average common equity (“ROE”) 15.93 % 17.91 % Return on average tangible common equity (“TCE”) (1) 17.05 % 19.35 % Common dividend payout ratio 26.58 % 23.62 % Net interest margin 3.27 % 3.61 % Efficiency ratio (2) 36.65 % 39.22 % At year end: Total assets $ 75,976,475 $ 69,612,884 Total loans $ 53,726,637 $ 52,210,898 Total deposits $ 63,175,023 $ 56,092,438 Common shares outstanding at period-end 138,437 140,027 Book value per share $ 55.79 $ 49.64 Tangible book value per share (1) $ 52.39 $ 46.27 (1) For additional information regarding the reconciliation of these non-U.S.
The Company’s 2024 net income was $1.2 billion, a $4 million or 0.4% increase from 2023.
The increase was primarily due to a decrease in noninterest expense and an increase in noninterest income, partially offset by higher provision for credit losses, lower net interest income before provision for credit losses, and higher income tax expense.
Noteworthy items about the Company’s performance for 2024 included: • Net interest income and net interest margin.
Year-over-year net interest income before provision for credit losse s decreased $34 million or 1% to $2.3 billion in 2024.
Full year 2024 net interest margin was 3.27% , a 34 bp decrease year-ov er-year. • Earnings per share growth.
Full year 2024 basic and diluted EPS each expanded 2% to $8.39 and $8.33, respectively. • Efficiency ratio improvement.
The efficiency ratio was 36.65% in 2024, a 257 bp improvement compared with 2023.
The improvement in the efficiency ratio primarily reflected a year-over-year decrease in the amortization of tax credit and CRA investments due to the expanded application of the proportional amortization method (“PAM”) since the adoption of Accounting Standards Update (“ASU”) 2023-02, Investments — Equity Method and Joint Ventures on January 1, 2024, and a decrease in the FDIC charge. • Asset growth.
Total assets reached $76.0 billion as of December 31, 2024, an increase of $6.4 billion or 9% year-over-year, primarily driven by an increase in AFS debt securities of $4.7 billion or 75%, and loan growth of $1.5 billion or 3%. • Deposit growth.
Total deposits were $63.2 billion as of December 31, 2024, an increase of $7.1 billion or 13% year-over-year, primarily reflecting growth across the Consumer and Business Banking, and Commercial Banking segments. • Strong capital levels.
Stockholders’ equity was $7.7 billion as of December 31, 2024, up from $7.0 billion as of December 31, 2023.
Book value per share of $55.79 as of December 31, 2024, increased $6.15 or 12% from December 31, 2023.
Tangible book value per share of $52.39 as of December 31, 2024, increased $6.12 or 13% from December 31, 2023.
Net interest income and net interest margin for 2024 decreased year-over-year, which primarily reflected higher deposit funding costs and shifts in the deposit mix to higher cost time and money market deposits, partially offset by loan growth and higher loan yields, and increases in AFS debt securities’ volume and yield.
Although the Federal Reserve cut interest rates three times since September 2024, the impacts of prior interest rate hikes spurred customers to seek high-yielding time deposits, which increased deposit costs at a faster rate than the increase in loan yields, and resulted in slight pressures on the Company’s net interest margin during 2024.
Average interest-earning assets increased $5.7 billion or 9% to $69.7 billion in 2024.
The yield on average interest-earning assets was 6.01% in 2024, an increase of 24 bps from 2023.
The increases in both the average balance and yield on interest-earning assets primarily reflected loan growth, an increase in AFS debt securities, and higher benchmark interest rates.
The average loan yield was 6.67% in 2024, an increase of 27 bps from 2023.
The year-over-year change in the average loan yield primarily reflected loan growth and the loan portfolio’s sensitivity to higher benchmark interest rates.
Approximately 58% of loans held-for-investment were variable-rate as of both December 31, 2024 and 2023.
Average deposits of $59.7 billion in 2024, increased $4.7 billion or 9% from 2023.
Average noninterest-bearing deposits of $14.8 billion in 2024, decreased $2.4 billion or 14% from 2023.
Average noninterest-bearing deposits made up 25% and 31% of average deposits for 2024 and 2023, respectively.
The average cost of deposits was 2.88% in 2024, an increase of 69 bps from 2023.
The average cost of interest-bearing deposits was 3.83% in 2024, an increase of 64 bps from 2023.
These year-over-year increases primarily reflected shifts in the deposit mix to time and money market deposits, and higher deposit costs in response to the interest rate environment.
In 2024, the average cost of funds was 3.02%, an increase of 67 bps from 2023.
The year-over-year increase was mainly driven by the change in the average cost of deposits discussed above.
The following table presents the interest spread, net interest margin, average balances, interest income and expense, and the average yield/rate by asset and liability component in 2024, 2023 and 2022: Year Ended December 31, 2024 2023 2022 ($ in thousands) Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate ASSETS Interest-earning assets: Interest-bearing cash and deposits with banks $ 4,936,550 $ 231,794 4.70 % $ 4,638,630 $ 220,643 4.76 % $ 3,127,234 $ 41,113 1.31 % Assets purchased under resale agreements (1) 519,263 11,254 2.17 % 691,223 20,164 2.92 % 1,398,080 29,767 2.13 % Debt securities: AFS (2)(3) 8,811,274 399,280 4.53 % 6,105,999 225,592 3.69 % 6,629,945 152,514 2.30 % Held-to-maturity (“HTM”) (2) 2,935,937 49,785 1.70 % 2,976,237 50,598 1.70 % 2,756,382 46,392 1.68 % Total debt securities (2) 11,747,211 449,065 3.82 % 9,082,236 276,190 3.04 % 9,386,327 198,906 2.12 % Loans: Commercial and industrial (“C&I”) (2) 16,492,472 1,294,451 7.85 % 15,499,899 1,190,940 7.68 % 15,013,560 715,778 4.77 % CRE (2) 20,316,013 1,292,973 6.36 % 19,824,272 1,227,795 6.19 % 17,896,853 791,839 4.42 % Residential mortgage 15,504,795 900,514 5.81 % 14,155,784 750,813 5.30 % 12,315,334 538,255 4.37 % Other consumer 55,500 3,041 5.48 % 65,181 3,198 4.91 % 93,711 2,429 2.59 % Total loans (2)(4)(5) 52,368,780 3,490,979 6.67 % 49,545,136 3,172,746 6.40 % 45,319,458 2,048,301 4.52 % Restricted equity securities 147,080 10,104 6.87 % 82,177 4,062 4.94 % 77,963 3,144 4.03 % Total interest-earning assets $ 69,718,884 $ 4,193,196 6.01 % $ 64,039,402 $ 3,693,805 5.77 % $ 59,309,062 $ 2,321,231 3.91 % Noninterest-earning assets: Cash and due from banks 345,056 555,689 652,673 Allowance for loan losses (688,448) (625,785) (559,746) Other assets 3,446,350 3,788,199 3,436,293 Total assets $ 72,821,842 $ 67,757,505 $ 62,838,282 LIABILITIES AND STOCKHOLDERS’ EQUITY Interest-bearing liabilities: Checking deposits $ 7,731,828 $ 221,367 2.86 % $ 7,658,414 $ 179,200 2.34 % $ 6,696,200 $ 29,808 0.45 % Money market deposits 13,970,375 525,870 3.76 % 11,680,540 399,482 3.42 % 12,443,437 107,442 0.86 % Savings deposits 1,770,041 17,764 1.00 % 2,128,943 15,573 0.73 % 2,901,940 8,550 0.29 % Time deposits 21,400,834 955,173 4.46 % 16,301,856 611,295 3.75 % 9,473,744 106,038 1.12 % Total interest-bearing deposits 44,873,078 1,720,174 3.83 % 37,769,753 1,205,550 3.19 % 31,515,321 251,838 0.80 % Bank Term Funding Program (“BTFP”), short-term borrowings and federal funds purchased 962,061 42,163 4.38 % 3,591,114 157,002 4.37 % 81,719 1,801 2.20 % FHLB advances 2,752,733 147,269 5.35 % 123,288 6,430 5.22 % 105,966 1,754 1.66 % Repurchase agreements 3,613 197 5.45 % 34,443 1,497 4.35 % 467,413 14,362 3.07 % Long-term debt and finance lease liabilities 58,467 4,677 8.00 % 152,790 11,072 7.25 % 152,325 5,595 3.67 % Total interest-bearing liabilities $ 48,649,952 $ 1,914,480 3.94 % $ 41,671,388 $ 1,381,551 3.32 % $ 32,322,744 $ 275,350 0.85 % Noninterest-bearing liabilities and stockholders’ equity: Demand deposits 14,799,961 17,192,978 22,784,258 Accrued expenses and other liabilities 2,056,755 2,410,154 1,948,255 Stockholders’ equity 7,315,174 6,482,985 5,783,025 Total liabilities and stockholders’ equity $ 72,821,842 $ 67,757,505 $ 62,838,282 Interest rate spread 2.07 % 2.45 % 3.06 % Net interest income and net interest margin $ 2,278,716 3.27 % $ 2,312,254 3.61 % $ 2,045,881 3.45 % (1) Includes the average balances and interest income for securities and loans purchased under resale agreements for 2023.
There were no loans purchased under resale agreements for 2024.
(3) Includes the amortization of net premiums on AFS debt securities of $35 million, $31 million and $72 million for 2024, 2023 and 2022, respectively.
(4) Average balances include nonperforming loans and loans held-for-sale.
(5) Includes the accretion of net deferred loan fees and amortization of net premiums, which totaled $53 million for each of 2024 and 2023, and $50 million for 2022.
Year Ended December 31, 2024 vs. 2023 2023 vs. 2022 Total Change Changes Due to Total Change Changes Due to ($ in thousands) Volume Yield/Rate Volume Yield/Rate Interest-earning assets: Interest-bearing cash and deposits with banks $ 11,151 $ 14,019 $ (2,868) $ 179,530 $ 27,977 $ 151,553 Assets purchased under resale agreements (1) (8,910) (4,382) (4,528) (9,603) (18,266) 8,663 Debt securities: AFS 173,688 114,930 58,758 73,078 (12,895) 85,973 HTM (813) (684) (129) 4,206 3,733 473 Total debt securities 172,875 114,246 58,629 77,284 (9,162) 86,446 Loans: C&I 103,511 77,492 26,019 475,162 23,900 451,262 CRE 65,178 30,853 34,325 435,956 95,037 340,919 Residential mortgage 149,701 74,955 74,746 212,558 87,511 125,047 Other consumer (157) (506) 349 769 (907) 1,676 Total loans 318,233 182,794 135,439 1,124,445 205,541 918,904 Restricted equity securities 6,042 4,045 1,997 918 177 741 Total interest and dividend income $ 499,391 $ 310,722 $ 188,669 $ 1,372,574 $ 206,267 $ 1,166,307 Interest-bearing liabilities: Checking deposits $ 42,167 $ 1,734 $ 40,433 $ 149,392 $ 4,879 $ 144,513 Money market deposits 126,388 83,521 42,867 292,040 (6,983) 299,023 Saving deposits 2,191 (2,930) 5,121 7,023 (2,792) 9,815 Time deposits 343,878 213,823 130,055 505,257 118,581 386,676 Total interest-bearing deposits 514,624 296,148 218,476 953,712 113,685 840,027 BTFP, short-term borrowings and federal funds purchased (114,839) (115,219) 380 155,201 151,725 3,476 FHLB advances 140,839 140,669 170 4,676 330 4,346 Repurchase agreements (1,300) (1,606) 306 (12,865) (17,113) 4,248 Long-term debt and finance lease liabilities (6,395) (7,443) 1,048 5,477 17 5,460 Total interest expense $ 532,929 $ 312,549 $ 220,380 $ 1,106,201 $ 248,644 $ 857,557 Changes in net interest income $ (33,538) $ (1,827) $ (31,711) $ 266,373 $ (42,377) $ 308,750 (1) Includes the impact of securities purchased under resale agreements for 2024 , and both securities and loans purchased under resale agreements for 2023 and 2022.
Noninterest Income The following table presents the components of noninterest income for the periods indicated: Year Ended December 31, ($ in thousands) 2024 2023 % Change from 2023 2022 Deposit account fees $ 103,880 $ 93,811 11 % $ 95,177 Lending fees 98,455 83,876 17 % 79,208 Foreign exchange income 54,605 48,276 13 % 41,416 Wealth management fees 38,627 26,994 43 % 27,738 Customer derivative income 16,401 20,200 (19) % 29,057 Net gains on sales of loans 44 3,634 (99) % 6,411 Net gains (losses) on AFS debt securities 2,069 (6,862) NM 1,306 Other investment income 5,611 9,348 (40) % 7,037 Other income 15,526 15,987 (3) % 11,316 Total noninterest income $ 335,218 $ 295,264 14 % $ 298,666 NM — Not meaningful.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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