Fourth Quarter 2017 INVESTOR PRESENTATION

Fourth Quarter 2017

INVESTOR PRESENTATION

March 2018

Forward-Looking Statements

2

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 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 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 including, but not limited to, under the Tax Cuts and Jobs Act; 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 potential federal tax changes and spending cuts; impact of adverse

judgments or settlements in litigation or 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; the effect of the current low interest rate environment or

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; 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, 2016, 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.

East West Profile

GREATER CHINA

10 Locations5 Full-service branches

5 Representative offices

3

Seattle

Las Vegas

Los Angeles

San Diego

Houston

Dallas AtlantaNew York

Boston

Across 60+ cities in 10 metropolitan areas

UNITED STATES

120+ Locations

89 U.S. branches in California

Chongqing

Beijing

Taipei

Guangzhou Xiamen

Shanghai &

Shanghai FTZ

Hong Kong

ShantouShenzhen

East West Bank is the largest independent bank headquartered in Los Angeles, CA.

With $37 billion in total assets, 45 years of operating history, and 3,000 associates,

East West Bank is the leading bank serving the Asian community in the U.S.

130+ LOCATIONS

THROUGHOUT

San Francisco

East West Bank Milestones

4

1973First EWB Branch

opens for business.

First S&L bank serving

the Asian American

market in Southern

California.

1999EWBC begins

to trade on

Nasdaq.

2009Acquired $10 billion

United Commercial

Bank and doubled

asset size to over

$20 billion.

Acquired China

banking license.

2017Net income:

$506 million

and assets of

$37 billion.

1991Assets

exceed

$1 billion.

1995Converted

to state

chartered

commercial

Bank.

1998Initiated

management-

led buyout.

2005Annual net

income

exceeds

$100 million.

2007First full-service

branch in Greater

China opened in

Hong Kong.

2014Presence expanded

in TX and CA with

acquisition of

$2 billion in assets

MetroCorp.

Opened new

branches in

Shanghai FTZ and

Shenzhen.

1980sBranch network

expanded in CA.

The

Beginning

Going

Public

Size

Doubles

Expansion in

TX and CAToday

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 1 of 3 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.

Ranked as top 5 of

Forbes’ 2018 America’s

Best Banks.

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.

Rank Total assets (12.31.17) Ticker $Billion Rank Market cap (02.26.18) Ticker $Billion

1 JPMorgan Chase & Co. JPM 2,533.6 1 JPMorgan Chase & Co. JPM 406.8

2 Bank of America Corporation BAC 2,281.2 2 Bank of America Corporation BAC 332.1

3 Wells Fargo & Company WFC 1,951.8 3 Wells Fargo & Company WFC 293.4

4 Citigroup Inc. C 1,842.5 4 Citigroup Inc. C 199.6

5 U.S. Bancorp USB 462.0 5 U.S. Bancorp USB 92.2

6 PNC Financial Services Group, Inc. PNC 380.8 6 PNC Financial Services Group, Inc. PNC 76.5

7 Bank of New York Mellon Corporation BK 371.8 7 Bank of New York Mellon Corporation BK 59.0

8 Capital One Financial Corporation COF 365.7 8 Capital One Financial Corporation COF 49.0

9 State Street Corporation STT 238.4 9 BB&T Corporation BBT 43.4

10 BB&T Corporation BBT 221.6 10 State Street Corporation STT 39.3

11 SunTrust Banks, Inc. STI 206.0 11 SunTrust Banks, Inc. STI 33.9

12 Citizens Financial Group, Inc. CFG 152.3 12 M&T Bank Corporation MTB 29.3

13 Fifth Third Bancorp FITB 142.2 13 Northern Trust Corporation NTRS 24.6

14 Northern Trust Corporation NTRS 138.6 14 Fifth Third Bancorp FITB 23.4

15 KeyCorp KEY 137.7 15 KeyCorp KEY 22.6

16 Regions Financial Corporation RF 124.3 16 Regions Financial Corporation RF 22.5

17 M&T Bank Corporation MTB 118.6 17 Citizens Financial Group, Inc. CFG 21.7

18 Huntington Bancshares Incorporated HBAN 104.2 18 Comerica Incorporated CMA 17.2

19 First Republic Bank FRC 87.8 19 Huntington Bancshares Incorporated HBAN 17.2

20 Comerica Incorporated CMA 71.6 20 First Republic Bank FRC 15.5

21 Zions Bancorporation ZION 66.3 21 SVB Financial Group SIVB 13.3

22 SVB Financial Group SIVB 51.2 22 Zions Bancorporation ZION 11.1

23 CIT Group Inc. CIT 49.3 23 East West Bancorp, Inc. EWBC 9.7

24 People's United Financial, Inc. PBCT 44.5 24 Signature Bank SBNY 8.5

25 Signature Bank SBNY 43.1 25 CIT Group Inc. CIT 7.1

26 First Horizon National Corporation FHN 41.4 26 PacWest Bancorp PACW 6.9

27 East West Bancorp, Inc. EWBC 37.2 27 Cullen/Frost Bankers, Inc. CFR 6.8

28 First Citizens BancShares, Inc. FCNCA 34.5 28 People's United Financial, Inc. PBCT 6.7

29 BOK Financial Corporation BOKF 32.3 29 Bank of the Ozarks OZRK 6.6

30 Cullen/Frost Bankers, Inc. CFR 31.7 30 First Horizon National Corporation FHN 6.4

Bank Rankings by Total Assets and Market Cap

6

Source: S&P Global Market Intelligence (SNL Financial).

8.8 8.2

14.1 13.7 14.5 15.118.1

21.823.7

25.529.1

$0

$10

$20

$30

$40

07 08 09 10 11 12 13 14 15 16 17

7.3 8.1

15.0 15.617.5 18.3

20.424.0

27.529.9

32.2

$0

$10

$20

$30

$40

07 08 09 10 11 12 13 14 15 16 17

1.21.6

2.32.1

2.3 2.4 2.4

2.93.1

3.43.8

$0

$1

$2

$3

$4

07 08 09 10 11 12 13 14 15 16 17

11.9 12.4

20.6 20.7 22.0 22.524.7

28.732.4

34.837.2

$0

$10

$20

$30

$40

07 08 09 10 11 12 13 14 15 16 17

Strong Balance Sheet Growth

7

Total Assets Stockholders' Equity

Total Loans

* CAGR from December 31, 2007 – December 31, 2107.

Total Deposits

($ in billions)

Adjusted Diluted EPS

Strong Earnings Growth

8

UCBH

acquisition

Nov. 2009

doubles

bank size

Adjusted Net Earnings ($ in millions)

+12%+11%

+15%+12%

+18%

+12%+11%+18%

+6%+14%

+17%

+16%

* See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release.

$77

$165

$243$278 $293

$346$385

$432

$504

2009 2010 2011 2012 2013 2014 2015 2016 2017*

$0.33

$0.83

$1.58$1.87

$2.09$2.41

$2.66$2.97

$3.45

2009 2010 2011 2012 2013 2014 2015 2016 2017*

$7.75

$10.87$12.22

$13.58 $14.39$16.30

$18.15$20.27

$23.13

-

2

4

6

8

10

12

14

16

18

20

22

24

26

2009 2010 2011 2012 2013 2014 2015 2016 2017

Tangible Equity per Share

5.65%

7.96%8.46% 8.60% 8.71%

8.29% 8.20%8.52%

9.12%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Tangible Equity to Tangible Assets Ratio

Steadily Growing Equity While Maintaining Robust TCE

9

+32 bps+14 bps

+11 bps (42) bps(9) bps

+11%+6%

+13%

+11%

+12%

UCBH

acquisition

Nov. 2009

doubles

bank size

+14%

+60 bps

2%

10%

2.04%2.27% 2.24% 2.15%

2016Full-Year

4Q17 2017Full Year

2017 ThirdQuarterIndustryAverage

Adjusted* Pre-tax, Pre-provision Profitability Ratio

44.2% 41.6% 41.5% 53.9%

2016Full-Year

4Q17 2017Full Year


Efficiency Ratio*

1%

Outperforming Peers on Key Profitability Metrics

10

50%

Note: Industry average based on FDIC’s 3Q17 Quarterly Banking Profile for FDIC insured banks with asset size $10bn to $250bn. Source: FDIC and S&P Global Market Intelligence (SNL Financial)* See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release.

1.30% 1.35% 1.41% 1.16%

2016Full-Year

4Q17 2017Full Year


Return on Average Assets

*

*

13.1% 13.0% 13.7% 9.5%

2016Full-Year

4Q17 2017Full Year


Return on Average Equity

*

*

4Q17 Net

income

$85

million

4Q 2017 Adj. Net

income1

$127

million

4Q17

Diluted

EPS

$0.58

4Q17

Adj. Diluted

EPS1

$0.87

Tangible equity1/share

$23.13

Record loans

$29.1 billion

Record deposits

$32.2 billion

Highlights of Full Year & Fourth Quarter 2017 Results

Earnings results.

FY 2017 net income of $506mm and EPS of $3.47 grew by 17% Y-o-Y.

4Q17 net income of $85mm and EPS of $0.58 were reduced by $42mm, or

$0.29 per share, due to the enactment of the Tax Cuts and Jobs Act. Adjusted

for this impact, 4Q17 adj.1 net income was $127mm and adj.1 EPS were $0.87.

NII growth: FY 2017 NII of $1.2bn was up 15% Y-o-Y. 4Q17 NII of $320mm was

up 5% Q-o-Q, driven by loan growth and loan yield expansion.

NIM expansion: FY 2017 NIM of 3.48% was up 18bps Y-o-Y. 4Q17 NIM of

3.57% was up by 5bps Q-o-Q and 26 bps Y-o-Y.

Balance sheet growth.

Total loans grew 7% LQA and 14% Y-o-Y.

Total deposits grew 12% LQA and 8% Y-o-Y.

Credit quality.

Net charge-off ratio: 0.08% of avg. loans HFI in FY 2017, and 0.22% of avg.

loans HFI in 4Q17.

NPAs decreased 2% Q-o-Q to $115mm, or 0.31% of total assets as of

12.31.17. Y-o-Y, NPAs declined by 11% from $130mm or 0.37% of total assets

as of 12.31.16.

11

1 See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release. 4Q17 adjusted for the impact of the enactment of the Tax Cuts

and Jobs Act.

Management Outlook: Full Year 2018

12

Earnings drivers Initial full year 2018 outlook 2017 FY actual

End of Period Loans Increase at a percentage rate of approximately 10%.$29.1 billion,

+14% Y-o-Y

NIM

(excl. impact of ASC 310-30

discount accretion)

In the range of 3.65% to 3.75%. 3.42%,

+27bps Y-o-Y

Noninterest Expense

(excl. tax credit investment &

core deposit intangible

amortization)

Increase at a percentage rate in the high single digits. $567 million,

+5% Y-o-Y

Provision for Credit Losses In the range of $70mm to $80mm. $46 million

Tax Items Effective tax rate of approximately 16%.

Y-o-Y decrease in effective rate due to the reduction in the

federal corporate tax rate.

Tax credit investments, excluding low income housing, of

$105mm with associated tax credit amortization of $85mm

above the line.

Effective tax rate:

31%

Tax credit investments, excluding low

income housing, of $110mm with

associated tax credit amortization of

$94mm.

Interest Rates Outlook incorporates the current forward rate curve.

Anticipate three fed funds rate increases of 25bps each in

March, June and September of 2018.

Fed funds increased 75bps in 2017:

25bps each in March, June and

December.

$110.7 $128.2

$118.3

$130.5 $126.6

$41.5

$2.2

1.27%

1.49%1.36% 1.44% 1.35%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

$0

$50

$100

$150

$200

4Q16 1Q17* 2Q17 3Q17* 4Q17*

$ in

mill

ions

Net Income & ROA*

Adj. net income Non-GAAP adjustments Adj. return on avg. assets

$(41.7)

GAAP$84.9

$110.7 $128.2 $118.3

$130.5 $126.6

$41.5

$2.2

12.9% 14.9% 13.0% 13.8% 13.0%

15.3%17.6%

15.3% 16.1%15.1%

5%$0

$100

$200

4Q16 1Q17* 2Q17 3Q17* 4Q17*

$ in

mill

ions

Net Income & ROE* and Tangible ROE*

Adj. net income Non-GAAP adjustments Adj. return on avg. equity Adj. return on avg. tang. eq.

GAAP$84.9

$(41.7)$0.76 $0.88

$0.81 $0.89 $0.87

$0.28 $0.02

0%

10%

20%

30%

40%

$0.00

$0.30

$0.60

$0.90

$1.20

4Q16 1Q17* 2Q17 3Q17* 4Q17*

$ p

er

share

Diluted EPS & EPS Growth

Adj. EPS Non-GAAP adjustments Adj. EPS growth

$(0.29)

GAAP$0.58

4Q17 Earnings Growth and Profitability

13

FY 2017: diluted EPS* of $3.47 & adj. diluted EPS* of $3.46.

In 2017, several nonrecurring items impacted earnings.

1Q17 gain on sale of commercial property: $0.28.

3Q17 gain on sale of business: $0.02.

4Q17 impact of the Tax Cuts & Jobs Act: $(0.29).

FY 2017: ROA* of 1.41%, ROE* of 13.7% and tangible

ROE* of 16.0%.

5-quarter range of adj. ROA*: 1.27% to 1.49%.

5-quarter range of adj. ROE*: 12.9% to 14.9%.

5-quarter range of adj. tangible ROE*: 15.1% to 17.6%.

* See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release. 1Q17 adjusted for the impact of a commercial property sale; 3Q17

adjusted for the impact of a gain on sale of a business; 4Q17 adjusted for the impact of the enactment of the Tax Cuts and Jobs Act.

GAAP

$0.91

GAAP

$1.16

GAAP

$132.7

GAAP

$169.7

GAAP

$132.7

GAAP

$169.7

9.6 9.9 10.2 10.6 10.7 37%

8.79.1 9.1

9.5 9.6 33%

1.61.7

1.81.9 1.9 7%3.5

3.74.0

4.4 4.7 16%2.12.1

2.1

2.12.2 7%

$0

$10

$20

$30

4Q16 1Q17 2Q17 3Q17 4Q17 4Q17Loan Mix

$ in b

illio

ns

Total Loans

C&I CRE MFR SFR HELOC and Other Consumer

4Q17 Record Loans of $29.1 billion

14

Note: Chart includes loans HFS by category. CRE = CRE, construction and land.

Q-o-Q Difference

Total end-of-period loans increased $528mm or 2%

(+7% LQA).

C&I: +1%, or +3% LQA.

CRE (w/ land & construction): +1%, or +4% LQA.

SFR: +7%, or +27% LQA.

MFR: +3%, or +11% LQA.

HELOC: +1%, or 4% LQA.

DCB loans HFS: $78mm, primarily CRE and C&I.

Average loan growth of 4% (+16% LQA).

C&I: +3%, or +10% LQA.

CRE (w/ land & construction): +4%, or +17% LQA.

SFR: +8%, or +32% LQA.

MFR: +6%, or +22% LQA.

HELOC: +1%, or 3% LQA.

Stable loan portfolio mix, balanced between all of our

major loan categories.

+7%

LQA$25.5$26.5

$27.2

$28.5$29.1

+19%

LQA+11%

LQA+15%

LQA

Specialized Industry Verticals: Cross-Border Growth

15

Total Loans

$29.1 bn

C&I loans

$10.7 bn or 37%

Specialized Industry

$4.5 bn or 42%

Includes Includes

Portfolio distribution data as of December 31, 2017.

* Other Specialized Lending comprises Agriculture, Aviation, Clean Tech, Health Care, Life Science and Power Project Finance.

Specialized Industry lending verticals have grown to $4.5 bn. Growth in these niches is driven by Bridge Banking, EWBC’s strategy of facilitating cross-border commercial opportunities.

Private Equity, 25%

Entertainment, 23%

Energy Finance,

12%

Structured Finance,

10%

Technology, 6%

Equipment Finance,

7%

Other*, 17%

Specialized Industry Lending,

42%

Traditional C&I (including

trade finance), 58%

Retail, 32%

Offices, 18%Industrial, 18%

Hotel/Motel, 13%

Construction& Land, 6%

Other, 13%

Less than 50%:37%

51% to 55%:14%

56% to 60%:17%

61% to 65%:17%

66% to 70%:8%

71% to 75%:2%

Over 75%:5%

16

Diversified Commercial Real Estate Portfolio

* Total CRE portfolio of $9.6 billion includes construction & land loans, which were $660 million as of 12.31.17. Construction & land excluded from LTV distribution chart.1 LTV based on current loan balance and appraisal value at origination or renewal.

CRE* Property Type Distribution (as of 12.31.17) CRE* LTV Distribution (as of 12.31.17)

$9.6 billionCRE loan

portfolio

$2.2 millionAvg. outstanding

CRE loan size

53%Avg. LTV1

4Q17 Record Deposits of $32.2 billion

17

DDA = Noninterest-bearing checking deposits. MMDA = Money market deposits. IB checking = Interest-bearing checking deposits.

$29.9$30.5

Q-o-Q Difference

Total end-of-period deposits increased $909mm or 3%

(+12% LQA).

DDA: +1%, or +5% LQA.

IB checking & savings: +6%, or +22% LQA.

MMDA: +6%, or +23% LQA.

Time deposits: -1%, or -4% LQA.

DCB deposits HFS: $605mm, primarily DDA and

savings.

Average deposit growth of 4% (+15% LQA).

DDA: +8%, or +33% LQA.

IB checking & savings: +5%, or +22% LQA.

MMDA: +3%, or +10% LQA.

Time deposits: -4%, or -16% LQA.

Over past 5 quarters, share of DDAs in total deposits

ranged from 34% to 35%.

Over past 5 quarters, share of time deposits in total

deposits ranged from 18% to 19%.

$31.2 $31.3$32.2

+12%

LQA+2%

LQA+8%

LQA+9%

LQA

10.2 10.7 10.5 11.0 10.9 34%

8.2 8.0 8.2 7.9 8.4 26%

5.9 6.0 6.4 6.6 6.7 21%

5.65.8

6.1 5.8 5.6 18%

0.6 1%

$0

$10

$20

$30

4Q16 1Q17 2Q17 3Q17 4Q17 4Q17Deposit Mix

$ in

bill

ions

Total Deposits

DDA MMDA IB checking & Savings Time Deposits HFS

4Q17 Summary Income Statement

18

% Change vs.

($ in millions, except per share data) 4Q17 3Q17 4Q16 4Q17 Comments

Adjusted net interest income $ 312.7 5% 20% Reflects loan growth & loan yield expansion.

ASC 310-30 discount accretion income $ 7.0 55% (39)% Includes recoveries.

Net interest income $319.7 5% 17%

Fees & operating income $ 38.5 (6)% (19)% Lower customer transaction volume.

Net gains on sales of fixed assets $ 3.3 NM NM

Net gains on sales of loans & securities $ 3.5 (10)% 247%

Total noninterest income $ 45.4 (9)% (7)%

Adjusted noninterest expense $ 151.9 9% 9% Driven by increase in compensation and

employee benefits.

Tax credit and other investments amortization $21.9 (8)% (3)%

Amortization of core deposit intangibles $ 1.6 (7)% (15)%

Total noninterest expense $ 175.4 7% 17%

Provision for credit losses $ 15.5 19% 48% Reflects loan growth & increase in charge-

offs.

Income tax expense $ 89.2 109% 77% Negative impact of $42mm from the

enactment of the Tax Cuts and Jobs Act.

Net income $84.9 (36)% (23)% Adj. net income of $127mm, excluding Tax

Cuts & Jobs Act impact.

Diluted EPS $ 0.58 (36)% (24)% Adj. EPS of $0.87, excluding Tax Cuts &

Jobs Act impact.

Note: See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release.

3.17% 3.29%3.41% 3.46% 3.49%

4.13% 4.17% 4.30% 4.35% 4.42%

0.31% 0.32% 0.36% 0.40% 0.43%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

4Q16 1Q17 2Q17 3Q17 4Q17

Adj.* NIM (ex. accretion) Adj.* Loan yield (ex. accretion) Total cost of deposits

NIM: Loan Yield & Cost of Deposits

261.1 268.9 283.8

298.6 312.7 11.6

3.2

6.3

4.6

7.0

$220

$240

$260

$280

$300

$320

$340

4Q16 1Q17 2Q17 3Q17 4Q17

$ in

mill

ions

Net Interest Income

Adj. net interest income* Accretion income

4Q17 NIM of 3.57% expanded by 5bps Q-o-Q.

Excluding the impact of accretion, adj.* NIM of 3.49%

expanded by 3bps Q-o-Q.

NIM benefitted from loan growth & loan yield

expansion.

4Q17 loan yield of 4.52% expanded by 10bps Q-o-Q;

adj.* loan yield of 4.42% expanded by 7bps Q-o-Q,

reflecting increases in interest rates.

4Q17 cost of deposits of 0.43% increased by 3 bps

Q-o-Q.

4Q17 Net Interest Income & Net Interest Margin

19

$272.7$272.1

4Q17 NII of $320mm increased Q-o-Q by $16.5mm,

or 5%.

4Q17 ASC 310-30 discount accretion income of $7mm

included $3mm of recoveries, which drove the Q-o-Q

increase.

Remaining ASC 310-30 discount of $35mm as of

12.31.17.

Adj.* NII, excluding accretion income, of $313mm

increased by 5% Q-o-Q.

* See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release.

$290.1$303.2

$319.7

10.2 10.3 10.7 10.8 10.7

3.4 4.5 3.5 3.6 3.0

5.45.0 5.9 6.0 6.5

14.411.1

12.0 10.2 9.6

7.0

2.5

3.8 6.7

4.7

7.1

5.4

6.2 3.6

4.0

$0

$10

$20

$30

$40

$50

4Q16 1Q17 2Q17 3Q17 4Q17

$ in

mill

ions

Total Fees and Other Operating Income

Branch fees Wealth management feesAncillary loan fees & other income LC fees & FX incomeDerivative fees & other income Other fees & operating income

Q-o-Q Difference

Total noninterest income of $45mm decreased by

$4mm or 9% Q-o-Q.

Excluding the impact of all gains on sales, fees and

other operating income of $38.5mm decreased by

$2mm or 6% Q-o-Q.

Increase in ancillary loan fees & other income reflected

higher loan volumes and related commitment fees.

Decreases in derivative fees & other income; foreign

exchange, and wealth management largely due to

lower customer transaction volumes.

Letters of credit fees increased Q-o-Q.

FY 2017 customer-facing product fees increased by

18% Y-o-Y.

4Q17 Fees & Other Operating Income

20

$47.5

$38.8

$42.1$40.9

$38.5

4Q17 total noninterest expense: $175mm.

4Q17 adj.* noninterest expense of $152mm, up by

$13mm or 9% Q-o-Q.

Compensation and employee benefits expense

increased by $11mm or 14% Q-o-Q: hiring & increases

to bonus accrual and restricted stock compensation.

4Q17 adj.* efficiency ratio: 41.6%.

FY 2017 adj. efficiency ratio: 41.5%, and FY 2016 adj.

efficiency ratio: 44.2%.

4Q17 Efficiency, PTPP Profitability & Tax Items

21

Growing pre-tax, pre-provision (PTPP) income.

4Q17 adj.* PTPP income of $213mm grew by 1% Q-o-Q

and 17% Y-o-Y, driven by NII growth.

5-qtr adj. PTPP profitability ratio range of 2.09% to 2.32%.

FY 2017 tax expense & effective tax rate negatively

impacted by the Tax Cuts & Jobs Act.

2017 effective tax rate: 31%. Adj.* 2017 effective tax rate: 26%.

Tax Cuts & Jobs Act impact: $42mm, or $0.29/share in 4Q17.

$33mm remeasurement of net DTA;

$8mm remeasurement of investments in qualified affordable

housing partnerships;

$1mm deemed repatriation of foreign earnings.

* *

* See reconciliation of GAAP to non-GAAP financial measures in the appendix of this presentation and in the Company’s 4Q17 Earnings Press Release. 4Q16 adjusted for reversal of legal accrual; 1Q17 adjusted for the

impact of a commercial property sale; 3Q17 adjusted for the impact of the gain on sale of business; 4Q17 adjusted for the impact of the enactment of the Tax Cuts and Jobs Act.

.

$138.7 $136.9 $139.5 $138.9

$151.9

43.2% 43.3%41.3%

39.8%41.6%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

$100

$120

$140

$160

$180

4Q16 1Q17 2Q17 3Q17 4Q17

$ in m

illio

ns

Adj. noninterest expense* Adj. efficiency ratio*

Noninterest Expense & Efficiency Ratio

$182.8 $179.6 $198.0 $210.0 $213.2

2.10% 2.09%

2.27% 2.32% 2.27%

1.00%

1.30%

1.60%

1.90%

2.20%

2.50%

$0

$50

$100

$150

$200

$250

4Q16 1Q17 2Q17 3Q17 4Q17

$ in m

illio

ns

Adj. PTPP income* Adj. PTPP profitability ratio*

PTPP Income & PTPP Profitability Ratio

$22.4

$49.2

$14.2

$27.5

$46.3

0.03%

0.18%

0.01% 0.15%

0.08%

0.00%

0.50%

1.00%

$0

$40

2013 2014 2015 2016 2017

$ in

mill

ions

Provision Expense and Net Charge-off* Ratio

Provision expense NCOs (net recoveries) / Avg. loans HFI*

Allowance for loan losses to loans HFI was 0.99% as

of 12.31.17, compared to 1.00% as of 09.30.17.

Net charge-off ratio:

4Q17: 0.22% (annualized)

FY 2017: 0.08%

5-year annual NCO ratio range: 0.01% to 0.18%.

Steadily decreasing NPAs over the past 5 years.

NPAs of $115mm, equivalent to 0.31% of total assets as

of 12.31.17.

Decreased by $2mm or 2% Q-o-Q.

Decreased by $14mm or 11% Y-o-Y.

$17.9

$21.7

$23.6$25.5

$29.0

1.40%1.20% 1.12% 1.02% 0.99%

0.00%

1.00%

2.00%

3.00%

4.00%

$0

$7

$14

$21

$28

$35

2013 2014 2015 2016 2017

$ in

bili

ons

Allowance for Loan Losses

Gross loans HFI* (excludes HFS) ALLL / Gross loans HFI*

$169.6

$132.4 $128.7 $129.6$115.1

0.69%

0.46%0.40% 0.37%

0.31%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2013 2014 2015 2016 2017

$ in

mill

ions

Nonperforming Assets*

Nonperforming assets NPAs / Total assets

Asset Quality Metrics

22

* Nonperforming assets and net charge-offs exclude purchased credit impaired loans. HFI represents held-for-investment.

$20.27

$23.13

7.0%

8.5%

10.5%

4.0%

8.52%

10.9% 10.9%

12.4%

8.7%9.12%

11.4% 11.4%

12.9%

9.2%

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

$5.00

$10.00

$15.00

$20.00

$25.00

Tangible equityper share

Tangible equity totangible assets ratio

CET1 risk-basedcapital ratio

Tier 1 risk-basedcapital ratio

Total risk-basedcapital ratio

Tier 1 leveragecapital ratio

EWBC's Capital Position

Basel III Fully Phased-in Minimum Regulatory Requirement EWBC 12.31.16 EWBC 12.31.17

23

Strong Capital Ratios

Regulatory capital ratios increased by 51 to 55 bps year-over-year, positive impact from earnings partially offset by

increase in risk weighted assets.

One-time items: +14bps of risk-based capital from commercial building sale in 1Q17, offset by -14bps of capital

decrease due to impact of Tax Cuts and Jobs Act.

Current capital levels are sufficient to support organic growth.

$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 $0.80

99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

Providing a Healthy Dividend to Stockholders

24

400% or $0.64 per share increase in dividends since 2011

EWBC has consistently paid an annual dividend on the common stock

since going public in 1999

Net Interest Income Volatility for 12.31.17 Given a 12-Month Demand Deposit Migration of:

$1.0 billion $2.0 billion $3.0 billion

Change in Interest Rates : % change $ in mm in EPS % change $ in mm in EPS % change $ in mm in EPS

+200 bps 16.9% $200.3 + $ 1.02 14.9% $176.6 + $ 0.90 13.0% $154.1 + $ 0.79

+100 bps 9.4% $111.4 + $ 0.57 8.1% $96.0 + $ 0.49 6.9% $81.8 + $ 0.42

Net Interest Income Volatility:

31-Dec-2017 31-Dec-2016

Change in Interest Rates : % change $ in mm in EPS % change $ in mm in EPS

+ 200 bps 18.9% $223.7 + $ 1.14 22.4% $231.3 + $ 1.20

+ 100 bps 10.7% $126.8 + $ 0.65 12.0% $123.9 + $ 0.64

- 100 bps -7.4% ($87.2) - $ (0.44) -6.8% ($70.2) - $ (0.36)

- 200 bps -12.6% ($149.0) - $ (0.76) -7.5% ($77.4) - $ (0.40)

Interest Rate Sensitivity

25

EWBC’s deposit mix has been stable: CDs ranging from 18% to 19%, and DDAs ranging from 34% to 35% over the past 5 quarters.

Brokered deposits are 4% of total deposits, trending down from the year-ago quarter.

Due to the growth in core deposits, a surge deposit study was conducted to identify the amount of volatile deposits and to estimate the likelihood of run-off in various interest rate environments.

EWBC’s Net Interest Income Sensitivity to Selected Interest Rate Scenarios (as of December 31, 2017)

Note: NII sensitivity translated into $ and EPS using annualized FY 2017 NII and FY 2016 NII, and the effective tax rate in each period; 2017 effective tax rate adjusted for impact of Tax Cuts & Jobs Act.

Loan Portfolio: Underlying Interest Rate Detail

26

EWBC’s loan portfolio is predominantly linked to Prime Rate and short-term LIBOR, a profile that has been consistent over time.

Nearly 80% of EWBC’s loan portfolio is variable rate (this includes hybrid loans in variable period), and <10% is fixed rate.

Less than $500mm of variable rate and hybrid loans, or <2% of total loans, have an index rate below floors. Approximately 40% of these would cross above floor rates with the next 25bps move in interest rates, and another 20% would cross with a second 25bps move. The weighted average distance below floors is 64bps.

Weighted avg. next repricing/maturity date of the total loan portfolio is approx. 1.25 years. The weighted avg. date of repricing for loans below floors is 4 months.

EWBC’s Loan Portfolio Breakdown: Fixed, Hybrid, & Variable Rate Loans (as of December 31, 2017)

Note: Hybrid loans shows those still in fixed rate period. Hybrid loans already subject to variable rate are shown in Variable loans.

Note: Loans (HFI & HFS) net of deferred fees, premiums, or discounts, and gross of ALLL.

% of % of

$ in mm. total loans $ in mm. category

True Fixed rate loans 2,320.5 8.0%

Hybrid: no floors 182.3 0.6%

Hybrid: Interest rates above floors 3,710.3 12.8%

Hybrid: Interest rates below floors 63.6 0.2%

Hybrid: Interest rates at floors 7.9 0.0%

Subtotal: Hybrid loans 3,964.1 13.6%

Variable: no floors 15,197.8 52.3%

Of which, linked to Prime 5,796 38%

Of which, linked to 1M Libor 5,413 36%

Of which, linked to Other Libor 1,918 13%

Variable: Interest rate above floors 7,112.5 24.5%

Of which, linked to Prime 4,280 60%

Of which, linked to 1M Libor 1,616 23%

Of which, linked to Other Libor 710 10%

Variable: Interest rate at floors 96.5 0.3%

Variable: Interest rate below floors 414.5 1.4%

Of which, linked to Prime 229 55%

Of which, linked to 1M Libor 80 19%

Of which, linked to Other Libor 64 15%

Subtotal: Variable rate loans 22,821.4 78.5%

Other (NPLs, premiums, discounts) (52.0) -0.2%

Total gross loans 29,053.9 100.0%

Key Focus Areas

27

Expand

MARKET

OPPORTUNITY

LONG-TERM

SHAREHOLDER

VALUE

Grow

CORE

DEPOSITS

Maintain good

ASSET

QUALITY

Maintain solid

NII* & NIM*

Enhance

RISK

MANAGEMENT

Build

FEE-BASEDbusinesses

Focus on

BRIDGE

BANKING

*NII = Net Interest Income. NIM = Net Interest Margin

Control

EXPENSES

Deliver

HIGH

PROFITABILITY

APPENDIX

Appendix: GAAP to Non-GAAP Reconciliation

29

EAST WEST BANCORP, INC. AND SUBSIDIARIES

GAAP TO NON-GAAP RECONCILIATION

($ in thousands)

(unaudited)

On December 22, 2017, the Tax Cuts and Jobs Act was enacted, which resulted in additional income tax expense recorded in the fourth quarter of 2017. The

table below shows the computation of the Company’s effective tax rate excluding the impact of the Tax Cuts and Jobs Act. Management believes that

excluding the impact of the Tax Cuts and Jobs Act from the effective tax rate computation allows comparability to prior periods.

Quarter Ended

December 31, 2017 September 30, 2017 December 31, 2016

Income tax expense (a) $ 89,229 $ 42,624 $ 50,403

Less: Impact of the Tax Cuts and Jobs Act (b) (41,689) — —

Adjusted income tax expense (c) $ 47,540 $ 42,624 $ 50,403

Income before income taxes (d) 174,127 175,284 161,137

Effective tax rate (a)/(d) 51.2 % 24.3 % 31.3 %

Less: Impact of the Tax Cuts and Jobs Act (b)/(d) (23.9)% — % — %

Adjusted effective tax rate (c)/(d) 27.3 % 24.3% 31.3 %

Year Ended

December 31, 2017 December 31, 2016

Income tax expense (e) $ 229,476 $ 140,511

Less: Impact of the Tax Cuts and Jobs Act (f) (41,689) —

Adjusted income tax expense (g) $ 187,787 $ 140,511

Income before income taxes (h) 735,100 572,188

Effective tax rate (e)/(h) 31.2 % 24.6 %

Less: Impact of the Tax Cuts and Jobs Act (f)/(h) (5.7)% — %

Adjusted effective tax rate (g)/(h) 25.5 % 24.6%

30

(1) Applied statutory tax rate of 42.05%.

(2) Annualized.



($ and shares in thousands, except for per share data)

(unaudited)

As disclosed in the Company’s current report on Form 8-K filed on March 30, 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 2017. In the third quarter of 2017, the Company sold its

insurance brokerage business, East West Insurance Services, Inc. (“EWIS”). On December 22, 2017, the Tax Cuts and Jobs Act was enacted, which resulted

in an additional income tax expense of $41.7 million recognized in the fourth quarter of 2017. Management believes that presenting the computations of the

adjusted diluted earnings per common share, return on average assets and return on average equity that exclude the impact of the Tax Cuts and Jobs Act and

after-tax gains on sales of the commercial property and EWIS business (where applicable) provides clarity to financial statement users regarding the ongoing

performance of the Company and allows comparability to prior periods.

Quarter Ended


Net income (a) $ 84,898 $ 132,660 $ 110,734

Add: Impact of the Tax Cuts and Jobs Act (b) 41,689 — —

Less: Gain on sale of business, net of tax (1) (c) — (2,206) —

Adjusted net income (d) $ 126,587 $ 130,454 $ 110,734

Diluted weighted average number of shares outstanding (e) 146,030 145,882 145,428

Diluted EPS (a)/(e) $ 0.58 $ 0.91 $ 0.76

Diluted EPS impact of the Tax Cuts and Jobs Act (b)/(e) 0.29 — —

Diluted EPS impact of gain on sale of business, net of tax (c)/(e) — (0.02) —

Adjusted diluted EPS $ 0.87 $ 0.89 $ 0.76

Average total assets (f) $ 37,262,618 $ 35,937,567 $ 34,679,137

Average stockholders’ equity (g) $ 3,856,802 $ 3,756,207 $ 3,423,405

Return on average assets (2) (a)/(f) 0.90% 1.46% 1.27%

Adjusted return on average assets (2) (d)/(f) 1.35% 1.44% 1.27%

Return on average equity (2) (a)/(g) 8.73% 14.01% 12.87%

Adjusted return on average equity (2) (d)/(g) 13.02% 13.78% 12.87%

Appendix: GAAP to Non-GAAP Reconciliation (cont’d)

31


(2) Annualized.



($ and shares in thousands, except for per share data)

(unaudited)

As disclosed in the Company’s current report on Form 8-K filed on March 30, 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 2017. In the third quarter of 2017, the Company sold

its insurance brokerage business, East West Insurance Services, Inc. (“EWIS”). On December 22, 2017, the Tax Cuts and Jobs Act was enacted, which

resulted in an additional income tax expense of $41.7 million recognized in the fourth quarter of 2017. Management believes that presenting the

computations of the adjusted diluted earnings per common share, return on average assets and return on average equity that exclude the impact of the Tax

Cuts and Jobs Act and after-tax gains on sales of the commercial property and EWIS business (where applicable) provides clarity to financial statement users

regarding the ongoing performance of the Company and allows comparability to prior periods.

Year Ended


Net income (h) $ 505,624 $ 431,677

Add: Impact of the Tax Cuts and Jobs Act (i) 41,689 —

Less: Gain on sale of the commercial property, net of tax (1) (j) (41,526) —

Gain on sale of business, net of tax (1) (k) (2,206) —

Adjusted net income (l) $ 503,581 $ 431,677

Diluted weighted average number of shares outstanding (m) 145,913 145,172

Diluted EPS (h)/(m) $ 3.47 $ 2.97

Diluted EPS impact of the Tax Cuts and Jobs Act (i)/(m) 0.29 —

Diluted EPS impact of gain on sale of the commercial property, net of tax (j)/(m) (0.28) —

Diluted EPS impact of gain on sale of business, net of tax (k)/(m) (0.02) —

Adjusted diluted EPS $ 3.46 $ 2.97

Average total assets (n) $ 35,787,613 $ 33,169,373

Average stockholders’ equity (o) $ 3,687,213 $ 3,305,929

Return on average assets (h)/(n) 1.41% 1.30%

Adjusted return on average assets (l)/(n) 1.41% 1.30%

Return on average equity (h)/(o) 13.71% 13.06%

Adjusted return on average equity (l)/(o) 13.66% 13.06%


32


(1) Annualized.



($ 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 sales of the commercial property and EWIS business

(where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles

and the reversal of a legal accrual (where applicable). The Company believes that the ratios presented below provide clarity to financial statement users

regarding the ongoing performance of the Company and allow comparability to prior periods.

Quarter Ended


Net interest income before provision for credit losses (a) $ 319,701 $ 303,155 $ 272,702

Total noninterest income 45,359 49,624 48,800

Total revenue (b) 365,060 352,779 321,502

Noninterest income 45,359 49,624 48,800

Less: Gain on sale of business — (3,807) —

Adjusted noninterest income (c) $ 45,359 $ 45,817 $ 48,800

Adjusted revenue (a)+(c) = (d) $ 365,060 $ 348,972 $ 321,502

Total noninterest expense (e) $ 175,416 $ 164,499 $ 149,904

Less: Amortization of tax credit and other investments (21,891) (23,827) (22,667)

Amortization of core deposit intangibles (1,621) (1,735) (1,909)

Legal accrual reversal — — 13,417

Adjusted noninterest expense (f) $ 151,904 $ 138,937 $ 138,745

Efficiency ratio (e)/(b) 48.05% 46.63% 46.63%

Adjusted efficiency ratio (f)/(d) 41.61% 39.81% 43.16%

Adjusted pre-tax, pre-provision income (d)-(f) = (g) $ 213,156 $ 210,035 $ 182,757

Average total assets (h) $ 37,262,618 $ 35,937,567 $ 34,679,137

Adjusted pre-tax, pre-provision profitability ratio (1) (g)/(h) 2.27% 2.32% 2.10%

Adjusted noninterest expense (1)/average assets (f)/(h) 1.62% 1.53% 1.59%

33


(1) Annualized.



($ 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 sales of the commercial property and EWIS business

(where applicable). Adjusted noninterest expense excludes the amortization of tax credit and other investments, the amortization of core deposit intangibles

and the reversal of a legal accrual (where applicable). The Company believes that the ratios presented below provide clarity to financial statement users

regarding the ongoing performance of the Company and allow comparability to prior periods.

Year Ended


Net interest income before provision for credit losses (i) $ 1,185,069 $ 1,032,638

Total noninterest income 258,406 182,918

Total revenue (j) 1,443,475 1,215,556

Noninterest income 258,406 182,918

Less: Gain on sale of the commercial property (71,654) —

Gain on sale of business (3,807) —

Adjusted noninterest income (k) $ 182,945 $ 182,918

Adjusted revenue (i)+(k) = (l) $ 1,368,014 $ 1,215,556

Total noninterest expense (m) $ 662,109 $ 615,889

Less: Amortization of tax credit and other investments (87,950) (83,446)

Amortization of core deposit intangibles (6,935) (8,086)

Legal accrual reversal — 13,417

Adjusted noninterest expense (n) $ 567,224 $ 537,774

Efficiency ratio (m)/(j) 45.87 % 50.67 %

Adjusted efficiency ratio (n)/(l) 41.46 % 44.24 %

Adjusted pre-tax, pre-provision income (l)-(n) = (o) $ 800,790 $ 677,782

Average total assets (p) $ 35,787,613 $ 33,169,373

Adjusted pre-tax, pre-provision profitability ratio (o)/(p) 2.24 % 2.04 %

Adjusted noninterest expense/average assets (n)/(p) 1.58 % 1.62 %

34


(1) Annualized.



($ in thousands)

(unaudited)

The Company 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.

Quarter Ended Year Ended

Yield on Average Loans

December 31,

2017

September 30,

2017

December 31,

2016

December 31,

2017

December 31,

2016

Interest income on loans (a) $ 326,401 $ 306,939 $ 272,188 $ 1,198,440 $ 1,035,377

Less: ASC 310-30 discount accretion income (7,024) (4,534) (11,601) (21,052) (45,424)

Adjusted interest income on loans (b) $ 319,377 $ 302,405 $ 260,587 $ 1,177,388 $ 989,953

Average loans (c) $ 28,646,461 $ 27,529,779 $ 25,033,196 $ 27,252,756 $ 24,264,895

Add: ASC 310-30 discount 37,660 41,875 54,664 43,341 64,324

Adjusted average loans (d) $ 28,684,121 $ 27,571,654 $ 25,087,860 $ 27,296,097 $ 24,329,219

Average loan yield (a)/(c) 4.52 % (1) 4.42 % (1) 4.33 % (1) 4.40 % 4.27 %

Adjusted average loan yield (b)/(d) 4.42 % (1) 4.35 % (1) 4.13 % (1) 4.31 % 4.07 %

Net Interest Margin

Net interest income (e) $ 319,701 $ 303,155 $ 272,702 $ 1,185,069 $ 1,032,638

Less: ASC 310-30 discount accretion income (7,024) (4,534) (11,601) (21,052) (45,424)

Adjusted net interest income (f) $ 312,677 $ 298,621 $ 261,101 $ 1,164,017 $ 987,214

Average interest-earning assets (g) $ 35,491,424 $ 34,208,533 $ 32,736,669 $ 34,034,065 $ 31,296,775

Add: ASC 310-30 discount 37,660 41,875 54,664 43,341 64,324

Adjusted average interest-earning assets (h) $ 35,529,084 $ 34,250,408 $ 32,791,333 $ 34,077,406 $ 31,361,099

Net interest margin (e)/(g) 3.57 % (1) 3.52 % (1) 3.31 % (1) 3.48 % 3.30 %

Adjusted net interest margin (f)/(h) 3.49 % (1) 3.46 % (1) 3.17 % (1) 3.42 % 3.15 %

35


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


(3) Annualized.



($ 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 are more prevalent in the banking industry, and such measures are used by banking regulators and analysts, the Company has

included them for discussion.


Stockholders’ equity $ 3,841,951 $ 3,781,896 $ 3,427,741

Less: Goodwill (469,433) (469,433) (469,433)

Other intangible assets (1) (28,825) (30,245) (35,670)

Tangible equity (a) $ 3,343,693 $ 3,282,218 $ 2,922,638

Total assets $ 37,150,249 $ 36,307,966 $ 34,788,840

Less: Goodwill (469,433) (469,433) (469,433)

Other intangible assets (1) (28,825) (30,245) (35,670)

Tangible assets (b) $ 36,651,991 $ 35,808,288 $ 34,283,737

Tangible equity to tangible assets ratio (a)/(b) 9.12 % 9.17 % 8.52 %

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, the after-tax gains on sales of the commercial property and EWIS business (where applicable), and the impact of the

Tax Cuts and Jobs Act. Given that the use of such measures and ratios are more prevalent in the banking industry, and such measures are used by banking regulators and analysts, the

Company has included them for discussion.

Quarter Ended


Net Income $ 84,898 $ 132,660 $ 110,734

Add: Amortization of core deposit intangibles, net of tax (2) 939 1,006 1,106

Amortization of mortgage servicing assets, net of tax (2) 254 307 106

Tangible net income (c) $ 86,091 $ 133,973 $ 111,946

Add: Impact of the Tax Cuts and Jobs Act 41,689 — —

Less: Gain on sale of business, net of tax (2) — (2,206) —

Adjusted tangible net income (d) $ 127,780 $ 131,767 $ 111,946

Average stockholders’ equity $ 3,856,802 $ 3,756,207 $ 3,423,405

Less: Average goodwill (469,433) (469,433) (469,433)

Average other intangible assets (1) (29,527) (31,408) (36,354)

Average tangible equity (e) $ 3,357,842 $ 3,255,366 $ 2,917,618

Return on average tangible equity (3) (c)/(e) 10.17 % 16.33 % 15.26 %

Adjusted return on average tangible equity (3) (d)/(e) 15.10 % 16.06 % 15.26 %

36


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


(3) Annualized.



($ in thousands)

(unaudited)

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, the after-tax gains on sales of the commercial property and EWIS business (where applicable), and the impact of the

Tax Cuts and Jobs Act. Given that the use of such measures and ratios are more prevalent in the banking industry, and such measures are used by banking regulators and analysts, the

Company has included them for discussion.

Year Ended


Net Income $ 505,624 $ 431,677

Add: Amortization of core deposit intangibles, net of tax (2) 4,019 4,686

Amortization of mortgage servicing assets, net of tax (2) 1,068 718

Tangible net income (f) $ 510,711 $ 437,081

Add: Impact of the Tax Cuts and Jobs Act 41,689 —

Less: Gain on sale of the commercial property, net of tax(2) (41,526) —

Gain on sale of business, net of tax (2) (2,206) —

Adjusted tangible net income (g) $ 508,668 $ 437,081

Average stockholders’ equity $ 3,687,213 $ 3,305,929

Less: Average goodwill (469,433) (469,433)

Average other intangible assets (1) (32,238) (38,386)

Average tangible equity (h) $ 3,185,542 $ 2,798,110

Return on average tangible equity (f)/(h) 16.03% 15.62%

Adjusted return on average tangible equity (g)/(h) 15.97% 15.62%

Fourth Quarter 2017 INVESTOR PRESENTATION

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Transcript of Fourth Quarter 2017 INVESTOR PRESENTATION