21
First Quarter 2016 INVESTOR PRESENTATION May 13, 2016
First Quarter 2016 INVESTOR PRESENTATION
May 13, 2016
Safe Harbor Statement
2
This presentation may include forward-looking statements that involve
inherent risks and uncertainties. East West Bancorp, Inc. cautions readers
that a number of important factors could cause actual results to differ
materially from those in any forward-looking statements. These factors
include economic conditions and competition in the geographic and business
areas in which East West Bancorp and its subsidiaries operate, inflation or
deflation, fluctuation in interest rates, legislation and governmental regulations,
investigation of acquired banks and other factors discussed in the Company’s
filings with the SEC.
East West Profile
GREATER CHINA
10 Locations
5 Full-service branches
5 Representative offices
3
Seattle
Las Vegas
Los Angeles
San Diego
Houston
Dallas Atlanta New York
Boston
Across 60+ cities in 10 metropolitan areas
UNITED STATES
120+ Locations
90 Branches
In California
Chongqing
Beijing
Taipei
Guangzhou Xiamen
Shanghai &
Shanghai FTZ
Hong Kong
Shantou Shenzhen
East West Bank is the largest independent bank based in Los Angeles, CA.
With $33 billion in total assets, 43 years of operating history, and 2,800 associates,
East West Bank is the leading U.S. Bank serving the Asian community.
130+ LOCATIONS
THROUGHOUT
San Francisco
East West Bank Milestones
4
1973 First EWB Branch
opens for business.
First S&L bank serving
the Asian American
market in Southern
California.
1999 EWBC begins
to trade on
Nasdaq.
2009 Acquired $10 billion
United Commercial
Bank and doubled
asset size to over
$20 billion.
Acquired China
banking license.
2016 Q1 net
income of
$107.5 million
and assets of
$33.1 billion.
1991 Assets
exceeded
$1 billion.
1995 Converted
to state
chartered
commercial
Bank.
1998 Initiated
management-
led buyout.
2005 Net income
exceeded
$100 million.
2007 First full-service
branch in Greater
China opened in
Hong Kong.
2014 Presence expanded
in TX and CA with
acquisition of
$2 billion Houston-
based MetroCorp.
Opened new
branches in
Shanghai FTZ and
Shenzhen.
2013 New branch in
Las Vegas.
1980s Branch network
expanded in CA.
The
Beginning
Going
Public
Size
Doubles
Expansion in
TX and CA Today
East West Bank’s Advantage
China is the 2nd largest
world economy.
Foreign direct investment in
the U.S. continues to rise.
Cross-border trade between
U.S. and Greater China
companies is strong.
EWB is one of the few U.S.
banks with a banking license
in China.
10 locations in Greater
China.
Largest U.S. bank serving
the Asian community.
Among the top 30 largest
public banks.
Bank of choice for new
Chinese-American
immigrants.
Voted by Forbes as top 15
of America’s best banks
(2010-2015).
Knowledge and
experience in:
Culture
Geography
Economics
Business practices
Well-connected with
business leaders and
service professionals.
Cross-border products
and services.
Long-term relationship
building.
THE U.S.
FACTOR
THE CHINA
FACTOR
BRIDGE
BANKING
EXPERTISE
VALUE FOR
CUSTOMERS
5
Help navigate complicated
business transactions.
Broaden opportunities with
our partners and resources.
Customized solutions meet
the unique financial needs
across various industries.
Beyond banking approach
helps customers assimilate
seamlessly into a new
country.
Bank Rankings by Total Assets and Market Cap
6
Rank Total Assets (as of 03.31.16) $ Billion Rank Market Cap (as of 05.13.16) $ Billion
1 JPMorgan Chase & Co. 2,423.8 1 Wells Fargo & Company 244.9
2 Bank of America Corporation 2,185.5 2 JPMorgan Chase & Co. 223.8
3 Wells Fargo & Company 1,849.2 3 Bank of America Corporation 142.6
4 Citigroup Inc. 1,801.0 4 Citigroup Inc. 126.5
5 U.S. Bancorp 428.6 5 U.S. Bancorp 71.5
6 Bank of New York Mellon Corporation 372.9 6 Bank of New York Mellon Corporation 42.5
7 PNC Financial Services Group, Inc. 361.0 7 PNC Financial Services Group, Inc. 42.3
8 Capital One Financial Corporation 330.3 8 Capital One Financial Corporation 35.2
9 State Street Corporation 243.7 9 BB&T Corporation 25.9
10 BB&T Corporation 212.4 10 State Street Corporation 23.5
11 SunTrust Banks, Inc. 194.2 11 SunTrust Banks, Inc. 20.3
12 Fifth Third Bancorp 142.4 12 M&T Bank Corporation 18.0
13 Citizens Financial Group, Inc. 140.1 13 Northern Trust Corporation 15.6
14 Regions Financial Corporation 125.5 14 Fifth Third Bancorp 13.2
15 M&T Bank Corporation 124.6 15 Regions Financial Corporation 11.4
16 Northern Trust Corporation 117.8 16 Citizens Financial Group, Inc. 11.3
17 KeyCorp 98.4 17 First Republic Bank 9.9
18 Huntington Bancshares Incorporated 72.6 18 KeyCorp 9.8
19 Comerica Incorporated 69.0 19 Huntington Bancshares Incorporated 7.7
20 First Republic Bank 62.1 20 Comerica Incorporated 7.4
21 Zions Bancorporation 59.2 21 Signature Bank 7.2
22 SVB Financial Group 43.6 22 Zions Bancorporation 5.3
23 First Niagara Financial Group, Inc. 40.1 23 East West Bancorp, Inc. 5.1
24 People's United Financial, Inc. 39.3 24 SVB Financial Group 4.8
25 Popular, Inc. 36.1 25 People's United Financial, Inc. 4.7
26 Signature Bank 34.9 26 Commerce Bancshares, Inc. 4.5
27 East West Bancorp, Inc. 33.1 27 PacWest Bancorp 4.5
28 First Citizens BancShares, Inc. 32.2 28 BOK Financial Corporation 3.8
29 BOK Financial Corporation 31.4 29 Synovus Financial Corp. 3.7
30 Synovus Financial Corp. 29.2 30 Cullen/Frost Bankers, Inc. 3.7
First Quarter 2016 Highlights
7
($ in millions, except per share data) 1Q16 4Q15
QoQ
Change 1Q15
YoY
Change
Net income $ 107.5 $ 91.8 +17% $ 100.0 +7%
Earnings per share (diluted) $ 0.74 $ 0.63 +17% $ 0.69 +7%
At period-end
Total loans
Total deposits
Total assets
$ 23,796.7
28,596.2
33,109.2
$ 23,691.7
27,476.0
32,350.9
+0.4%
+4%
+2%
$ 21,571.7
25,162.8
29,906.8
+10%
+14%
+11%
$ $ $
$ $ $
Selected ratios
Return on average assets 1.33% 1.14% +19 bps 1.39% -6 bps
Return on average equity 13.59% 11.67% +1.92% 13.93% -0.34%
Net interest margin 3.32% 3.26% +6 bps 3.51% -19 bps
Cost of deposits 0.28% 0.29% Improved 1 bp 0.28% -
Adjusted efficiency ratio1 44.53% 43.99% +54 bps 42.65% +188 bps
1 Represents noninterest expense, excluding amortization of tax credit and other investments and amortization of premiums on deposits acquired, divided by
the aggregate of net interest income before (provision for) reversal of credit losses, and noninterest income.
First Quarter Net Interest Income and Margin
8
$235.7 $227.5
$240.3 $246.9 $252.2
3.51%
3.31% 3.32% 3.26%
3.32%
2.70%
2.80%
2.90%
3.00%
3.10%
3.20%
3.30%
3.40%
3.50%
3.60%
$150
1Q15 2Q15 3Q15 4Q15 1Q16
Net Interest Income Net Interest Margin
Net Interest Income
$252.2 million
1Q16 Net Interest Income
+$5.3 million or +2% From 4Q15 Net Interest Income
Due to loan portfolio growth
($ in m
illio
ns)
Net Interest Margin
3.32%
1Q16 Net Interest Margin
+6 basis points From 4Q15 Net Interest Margin
Due to higher yield on interest-earning assets
Strong Growth and Performance
9
$10.8 $11.9 $12.4
$20.6 $20.7 $22.0 $22.5 $24.7
$28.7 $32.4
$33.1
06 07 08 09 10 11 12 13 14 15 1Q16QTD
Total Assets** Stockholders' Equity**
Total Loans
*CAGR from December 31, 2006 – March 31, 2016.
**2010-2014 were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company's investments in qualified
affordable housing projects Accounting Standards Update (“ASU”) 2014-01.
$8.3 $8.8 $8.2
$14.1 $13.7 $14.5 $15.1 $18.1
$21.8 $23.7
$23.8
06 07 08 09 10 11 12 13 14 15 1Q16QTD
$7.2 $7.3 $8.1
$15.0 $15.6 $17.5 $18.3
$20.4 $24.0
$27.5 $28.6
06 07 08 09 10 11 12 13 14 15 1Q16QTD
$1.0 $1.2
$1.6
$2.3 $2.1
$2.3 $2.4 $2.4
$2.9 $3.1
$3.2
06 07 08 09 10 11 12 13 14 15 1Q16QTD
Deposits
($ in billion)
Sixth Consecutive Year of Record Earnings* for 2015
10
Earn
ings (
$ m
illio
n)
>18% CAGR for Net Income
* 2010-2014 were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company's investments in
qualified affordable housing projects ASU 2014-01.
$164.6
$242.8
$277.7 $293.3
$345.9
$384.7
$107.5
2011 2012 2013 2014 2015 2016
1Q
2010
Seventh Consecutive Year of EPS* Growth for 2015
11
$0.33
$0.83
$1.58
$1.87
$2.09
$2.41
$2.66
$0.74
2009 2010 2011 2012 2013 2014 2015 2016 Q1
42% CAGR for Earnings Per Share
* 2010-2014 were restated to reflect the retrospective application of adopting the new accounting guidance related to the Company's investments in
qualified affordable housing projects ASU 2014-01.
2011 2012 2013 2014 2015 2016
1Q
2010 2009
Strong Efficiency Ratio
12
42% 45%
59%
2015 Full-Year 2016 1Q Industry Average*
50%
East West Bank has better operating efficiency
compared to peer banks
* Industry average based on FDIC’s 4Q15 Quarterly Banking Profile for FDIC Insured Banks with Asset size >$10B.
Diversified Loan Portfolio
13
Loan Distribution
($ in b
illio
ns)
$21.6
$22.2
$23.0
$23.7
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
$23.8
$23.8 billion RECORD loans as of March 31, 2016
+$105.0 million QoQ increase
+$2.2 billion or 10% YoY increase
QoQ organic loan growth mostly driven
by CRE, consumer and SFR
1Q16 average loan yield
was 4.28%
C&I 37%
CRE 33%
SFR 13%
Land/Construction
3% MFR
6%
Consumer
8%
14
Retail 29%
Industrial 18%
Hotel 15%
Mixed Use 14%
Office 14%
Other 7%
Diversified Commercial Real Estate Portfolio*
$7.8 billion CRE loan portfolio
$2.1 million Average outstanding
CRE loan size
47% Average LTV
*As of March 31, 2016
Medical
3%
$25.2 $25.5
$26.8
$27.5
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
Strong Deposit Growth
15
($ in b
illio
ns)
$28.6
$28.6 billion RECORD deposits as of March 31, 2016
+$1.1 billion or 4% QoQ increase
+$3.4 billion or 14% YoY increase
$22.5 billion record core deposits
1Q16 cost of deposit was 0.28%
Deposit Distribution
MMDA 27%
Checking 12%
Savings 7%
CD 21%
DDA
33%
$120.5 $112.9 $129.8 $128.4
$168.7
0.40% 0.38%
0.42% 0.40%
0.51%
0.00% $-
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
Nonperforming assetsNonperforming assets: Total assets
0.11%
-0.08%
0.09%
-0.07%
0.09%
-0.10%
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
Net charge-offs (recoveries): Avg. HFI Loans
Low Levels of Nonaccrual Loans & Net Charge-Offs
16
$87.8 $87.2
$117.5 $121.4
$162.6 0.41% 0.40%
0.52% 0.51%
0.68%
0.00% $-
$250.0
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
Nonaccrual loans Nonaccrual: HFI Loans $ in millions
$257.7 $261.2 $264.4 $265.0 $260.2
1.21% 1.19% 1.17% 1.12% 1.09%
0.00% $100.0
03.31.15 06.30.15 09.30.15 12.31.15 03.31.16
Allowance for loan losses
Allowance for loan losses: HFI Loans
Nonaccrual loans and nonperforming assets exclude purchased credit impaired loans. HFI represents held-for-investment.
17
Strong Capital Levels
East West Bank’s capital levels exceed
well-capitalized regulatory requirements
6.5%
8%
10%
5%
10.7% 10.7%
12.4%
8.5%
CET1 capital ratio Tier 1 risk-based capital ratio Total risk-based capital ratio Tier 1 leverage capital ratio
Well-capitalized regulatory requirements EWBC 03.31.16
CET1
capital ratio Tier 1 risk-based
capital ratio
Total risk-based
capital ratio
Tier 1 leverage
capital ratio
Providing a Healthy Dividend to Shareholders
18
400% or $0.64 per share increase in dividends since 2011
*Annualized based on dividend rate for the first and second quarters of 2016.
$0.06 $0.06 $0.06
$0.14
$0.20 $0.20 $0.20 $0.20
$0.40 $0.40
$0.05 $0.04
$0.16
$0.40
$0.60
$0.72
$0.80 $0.80
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16*
EWBC has consistently paid an annual dividend on the common stock
since going public in 1999
5/13/2011
EWBC S&P 500 KBW Regional Bank Index DJIA
Strong Total Shareholder Return
19
Total Shareholder Return as of 05.13.16. Source: SNL Financial LC.
Ticker EWBC
Exchange NASDAQ
Market Cap
(as of 05.13.16)
$5.1B
Closing Price
(as of 05.13.16)
$35.56
52-week high $46.50
52-week low $27.25
No. of shares
outstanding
144M
Annual Dividend $0.80
52%
91%
3-YR 5-YR
Total Shareholder Return
EWBC stock has outperformed peers and
major indices over the last 5 years
$20.49
May 13, 2011
$35.56
May 13, 2016
Key Focus Areas
20
Expand
MARKET
LONG-TERM
SHAREHOLDER
VALUE
Grow
CORE DEPOSITS
Maintain good
LOAN CREDIT
Maintain solid
NII* & NIM* Control
EXPENSES
Build
FEE-BASED businesses
Increase
PROFITABILITY
*NII = Net Interest Income. NIM = Net Interest Margin
Summary
21
Strengthened position as the leading Asian-American bank
Financially bridge Asian and mainstream customers
Strong financial performance and balance sheet
Focus on growing core earnings and fee income
Large California, domestic, and China growth opportunities
Only Asian-American focused bank with full service banking
offices in U.S. and Greater China
