East West Bancorp Reports Net Income for Full Year 2012 of $281.7 Million, up 15% from Prior Year, and Earnings Per Share of $1.89, up 18% from Prior Year

Wed Jan 23, 2013 4:34pm EST

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PASADENA, Calif.--(Business Wire)--
East West Bancorp, Inc. ("East West") (Nasdaq: EWBC), parent company of East
West Bank, the financial bridge between the United States and Greater China,
today reported financial results for the fourth quarter and full year of 2012.
For the fourth quarter of 2012, net income was $71.9 million or $0.49 per
dilutive share. For the full year 2012, net income was $281.7 million and net
income available to common stockholders was $1.89 per dilutive share. 

"East West earned a record $281.7 million for the full year 2012 and $71.9
million for the fourth quarter of 2012. This is the third consecutive year of
record net income for East West and the eighth consecutive quarter of earnings
per share growth," stated Dominic Ng, Chairman and Chief Executive Officer of
East West. "During 2012, East West performed well on all significant fronts
including: loan growth, commercial deposit growth, expense control and credit
quality. Year over year, East West grew non-covered commercial and trade finance
loans by $1.1 billion or 35% to a record $4.2 billion, and increased core
deposits by $1.9 billion or 18% to a record $12.2 billion. This growth was
achieved while we maintained strong expense control and improved the efficiency
ratio for the full year to 42.3% and reduced the nonperforming assets to total
assets ratio to 63 basis points." 

"For the full year 2012, our return on assets totaled 1.29%, up 13% compared to
prior year and our return on equity totaled 12.29%, up 11% compared to prior
year. With our strong earnings power, healthy balance sheet and capital levels,
once again, I am pleased to announce that the Board of Directors of East West
Bank has approved an increase in the common stock dividend and has authorized a
new stock repurchase program. The annual common stock dividend has been
increased 50% to $0.60 per share and another stock repurchase program for $200.0
million has been authorized for 2013. As the premier financial bridge between
the East and the West, we continue to win new business and grow our market share
as evidenced by our solid financial results year after year, and we look forward
to delivering a strong financial performance in 2013 and beyond," concluded Ng. 

Quarterly Results Summary

                                                Quarter Ended                                                                              
 Dollars in millions, except per share          December 31, 2012               September 30, 2012                 December 31, 2011       
 Net income                                     $       71.90                   $        71.11                     $       66.21           
 Net income available to common shareholders    $       70.19                   $        69.40                     $       64.49           
 Earnings per share (diluted)                   $       0.49                    $        0.48                      $       0.43            
 Tangible book value per common share           $       13.55                   $        13.07                     $       12.17           
                                                                                                                                           
 Return on average assets                               1.28    %                        1.30     %                        1.20    %       
 Return on average common equity                        12.26   %                        12.43    %                        11.54   %       
                                                                                                                                           
 Net interest income, adjusted (1)              $       198.42                  $        196.29                    $       204.04          
 Net interest margin, adjusted (1)                      3.84    %                        3.95     %                        4.13    %       
 Cost of deposits                                       0.40    %                        0.41     %                        0.55    %       
 Efficiency ratio                                       41.41   %                        42.20    %                        43.81   %       
                                                                                                                                           


Full Year 2012 Highlights

* Record Earnings - East West increased net income each consecutive quarter of
2012. For the full year 2012, net income totaled a record $281.7 million, a 15%
or $36.5 million increase from $245.2 million in 2011. For the full year 2012,
earnings per share totaled $1.89, an increase of 18% from $1.60 for full year
2011. 
* Strong Loan Growth - Total non-covered loans, excluding loans held for sale,
grew to a record $12.0 billion, an increase of 16% or $1.7 billion during the
full year 2012. The growth in non-covered loans was fueled by strong growth in
commercial and trade finance loans and single-family real estate loans. Total
loans receivable including non-covered loans, loans held for sale and loans
covered under loss-share agreements grew to a record $15.1 billion, an increase
of 4% or $578.6 million during the full year 2012. 
* Record Core Deposit Growth - Total deposits grew to a record $18.3 billion, a
5% or $856.4 million increase during the full year 2012. Core deposits grew to a
record $12.2 billion, an increase of 18% or $1.9 billion year to date. 
* Solid Return of Capital to Shareholders - For the full year 2012, we
repurchased 6% or 9.1 million shares of our common stock for a total cost of
$199.9 million. Additionally, we increased the common stock dividend rate 100%
to $0.40 per year. 
* Strong Capital Levels - Capital levels for East West remain high. As of
December 31, 2012, East West`s Tier 1 risk-based capital and total risk-based
ratios were 14.8% and 16.1%, respectively, over $800 million greater than the
well capitalized requirements of 6% and 10%, respectively. 
* Nonperforming Assets Down to 0.63% of Total Assets - Nonperforming assets
decreased to $141.0 million, or 0.63% of total assets at December 31, 2012, a
full year decrease of $34.0 million or 19% from December 31, 2011.

Fourth Quarter 2012 Highlights

* Solid Fourth Quarter Earnings - For the fourth quarter of 2012, net income was
$71.9 million or $0.49 per dilutive share. Net income increased by 1% or $790
thousand from the third quarter of 2012 and 9% or $5.7 million from the fourth
quarter of 2011. Earnings per dilutive share grew 2% or $0.01 from the third
quarter of 2012 and 14% or $0.06 from the fourth quarter of 2011. 
* Strong Loan Growth - Quarter to date, non-covered loans, excluding loans held
for sale, grew 7% or $803.7 million. This growth was largely due to increases in
commercial and trade finance loans, commercial real estate and single-family
real estate loans, which grew 13% or $498.5 million, 4% or $124.4 million and 6%
or $121.7 million, respectively. Total loans, including non-covered loans, loans
held for sale and loans covered under loss-share agreements grew 4% quarter to
date or $577.1 million. 
* Strong Core Deposit Growth - Core deposit growth continued in the fourth
quarter and increased by $817.9 million to a record $12.2 billion or 67% of
total deposits. Total deposits increased to a record $18.3 billion, an increase
of 4% or $642.9 million from $17.7 billion as of September 30, 2012. 
* Improved Asset Quality - Net charge-offs declined in the fourth quarter 2012
to $9.6 million, a 10% or $1.0 million decrease as compared to the third quarter
of 2012. The level of nonperforming assets continues to be low, decreasing to
0.63% of total assets as of December 31, 2012, down from 0.66% as of September
30, 2012.

Management Guidance

The Company is providing guidance for the first quarter and full year of 2013.
The new repurchase authorization to buyback up to $200.0 million of the
Company`s common stock is factored into this guidance for the first quarter of
2013 and full year 2013. Management currently estimates that fully diluted
earnings per share for the full year of 2013 will range from $2.00 to $2.04, an
increase of $0.11 to $0.15 or 6% to 8% from $1.89 for the full year of 2012.
This EPS guidance for the full year of 2013 is based on a stable balance sheet,
total loan growth of 3% (including both noncovered and covered loans), an
adjusted net interest margin ranging from 3.65% to 3.75%1, provision for loan
losses of approximately $35 million to $40 million, noninterest expense,
adjusted for FDIC reimbursements, of approximately $387 million to $393 million,
and an effective tax rate of 35.5%. 

Management currently estimates that fully diluted earnings per share for the
first quarter of 2013 will range from $0.48 to $0.50 per dilutive share. This
EPS guidance for the first quarter of 2013 is based on a stable balance sheet,
total loan growth of 3%, annualized, an adjusted net interest margin ranging
from approximately 3.75% to 3.80%1, provision for loan losses of approximately
$10 million, noninterest expense adjusted for FDIC reimbursements of
approximately $98 million to $100 million, and an effective tax rate of 35.5%. 

Balance Sheet Summary

At December 31, 2012, total assets increased to $22.5 billion compared to $21.8
billion at September 30, 2012, and $22.0 billion at December 31, 2011. The
increase in total assets during the fourth quarter was primarily attributable to
increases in non-covered loans, securities purchased under resale agreements and
investment securities. Average earning assets increased during the fourth
quarter, up 4% or $776.8 million to $20.6 billion compared to the prior quarter.
The increase in average earning assets during the fourth quarter was primarily
attributable to increases in average balances for non-covered loans, securities
purchased under resale agreements and investment securities. 

Loans receivable increased to $15.1 billion at December 31, 2012, compared to
$14.5 billion at September 30 2012 and $14.5 billion at December 31, 2011. This
increase in loans receivable both quarter to date and year to date was due to
growth in the non-covered loan portfolio, partially offset by a decrease in the
covered loan portfolio. 

Covered Loans

Covered loans, net totaled $2.9 billion as of December 31, 2012, a decrease of
$243.0 million or 8% from September 30, 2012. The decrease in the covered loan
portfolio was primarily due to payoffs and paydown activity, as well as
charge-offs. 

The covered loan portfolio is comprised of loans acquired from the FDIC-assisted
acquisitions of United Commercial Bank (UCB) and Washington First International
Bank (WFIB) which are covered under loss-share agreements with the FDIC. During
the fourth quarter of 2012, we recorded a net decrease in the FDIC
indemnification asset and receivable included in noninterest (loss)/income of
($49.7) million, largely due to continued improved credit performance of the UCB
portfolio as compared to our original estimate. 

Deposits

At December 31, 2012, total deposits equaled $18.3 billion an increase of 4% or
$642.9 million from $17.7 billion at September 30, 2012. Throughout the year, we
focused on growing core deposits and reducing our reliance on time deposits and
this strategy continued in the fourth quarter of 2012. Total core deposits
increased 7% to $12.2 billion at December 31, 2012, or an increase of $817.9
million from September 30, 2012. The increase is largely due to a $417.4 million
or 10% increase in noninterest-bearing demand deposits which grew to a record
$4.5 billion as of December 31, 2012. 

Time deposits remained stable and decreased 3% or $175.0 million from September
30, 2012 to $6.1 billion at December 31, 2012. 

Fourth Quarter 2012 Operating Results

Net Interest Income

Net interest income, adjusted for the net impact of covered loan dispositions,
totaled $198.4 million for the fourth quarter of 2012, as compared to $196.3
million for the third quarter of 2012 and $204.0 million for the fourth quarter
2011. The core net interest margin, excluding the net impact to interest income
of $46.5 million resulting from covered loan activity and amortization of the
FDIC indemnification asset, totaled 3.84% for the fourth quarter of 2012. This
compares to a core net interest margin, excluding the net impact to interest
income of $25.6 million and $25.0 million resulting from covered loan activity
and amortization of the FDIC indemnification asset, of 3.95% and 4.13% for the
third quarter of 2012 and fourth quarter of 2011, respectively.1

The increase in net interest income from the prior quarter stemmed from higher
average interest earning assets, which increased $776.8 million or 4% quarter
over quarter, largely fueled by higher total average loans outstanding, which
increased $426.7 million or 4% quarter over quarter. However, the decrease in
the core net interest margin in the fourth quarter of 2012 compared to the third
quarter of 2012 is primarily due to the larger impact of covered loan
dispositions and amortization activity in the fourth quarter and the continued
downward repricing of the investment securities and loan portfolios. 

As previously discussed, with the extended low interest rate environment,
downward pressure on the net interest margin is expected to continue to be a
challenge for East West and the rest of the banking industry. East West
continues to look for opportunities to minimize our cost of funds and maximize
our asset yields, while also ensuring prudent interest rate risk management. In
the fourth quarter of 2012, East West prepaid $43.0 million of FHLB advances at
an average effective cost of 1.60% and restructured $75.0 million of FHLB
advances, reducing the average effective cost for those advances by 86 basis
points. Also, during the fourth quarter, the Company restructured $150.0 million
of securities sold under repurchase agreements, reducing the average effective
cost for those repurchase agreements by 195 basis points. 

The cost of funds decreased 3 basis points from 0.67% in the third quarter of
2012 to 0.64% in the fourth quarter of 2012. The reduction in the cost of funds
and interest expense is primarily due to management`s ongoing actions to reduce
higher cost funding and time deposits, and grow core deposits. The Company
increased core deposit balances by 7%, quarter over quarter. These combined
actions resulted in an overall reduction in the cost of deposits of 1 basis
point to 0.40% for the fourth quarter of 2012 from 0.41% in the prior quarter. 

Noninterest (Loss)/ Income & Expense

The Company reported total noninterest (loss)/income for the fourth quarter of
2012 of ($18.5) million, a decrease from noninterest income of $2.8 million in
the third quarter of 2012 and $937 thousand in the fourth quarter of 2011. The
decrease in noninterest (loss)/income from the prior quarter and prior year is
primarily attributable to an increase in the net reduction of the FDIC
indemnification asset and FDIC receivable. 

Branch fees, letter of credit and foreign exchange income, ancillary loan fees
and other operating income increased to $26.9 million in the fourth quarter of
2012, an increase from $24.0 million in the third quarter of 2012 and $17.2
million in the fourth quarter of 2011. In addition, included in noninterest
income for the fourth quarter of 2012 were net gains on sales of fixed assets of
$4.2 million. A summary of fees and other operating income for the fourth
quarter of 2012, compared to the third quarter of 2012 and fourth quarter of
2011 is detailed below:

                                                       Quarter Ended                                                                           % Change        
 ($ in thousands)                                      December 31, 2012             September 30, 2012              December 31, 2011         (Yr/Yr)         
                                                                                                                                                               
 Branch fees                                           $          8,322              $           8,347               $          8,072          3         %     
 Letters of credit fees and foreign exchange income               7,932                          7,166                          5,504          44        %     
 Ancillary loan fees                                              2,818                          1,817                          2,228          26        %     
 Other operating income                                           7,788                          6,699                          1,393          459       %     
 Total fees & other operating income                   $          26,860             $           24,029              $          17,197         56        %     
                                                                                                                                                               


Noninterest expense totaled $105.2 million for the fourth quarter of 2012, an
increase of $4.3 million from the third quarter of 2012 and a decrease of $1.5
million from the fourth quarter of 2011. 

Noninterest expense, excluding amounts to be reimbursed by the FDIC on covered
assets and prepayment penalties for FHLB advances and other borrowings, totaled
$98.1 million for the fourth quarter of 2012.1 A summary of noninterest expense
for the fourth quarter of 2012, compared to the third quarter of 2012 and fourth
quarter of 2011 is detailed below:

 ($ in thousands)                                                                                                        Quarter Ended                                                               
                                                                                                                         December 31, 2012         September 30, 2012          December 31, 2011     
 Total noninterest expense:                                                                                              $          105,206        $           100,956         $          106,672    
 Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount)                                              3,920                      3,005                      8,551      
 Prepayment penalties for FHLB advances and other borrowings                                                                        3,161                      42                         -          
 Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances and other borrowings      $          98,125         $           97,909          $          98,121     
                                                                                                                                                                                                     


Total noninterest expense for the fourth quarter, excluding amounts to be
reimbursed by the FDIC on covered assets and prepayment penalties for FHLB
advances and other borrowings, increased $216 thousand from the third quarter of
2012 to $98.1 million. The small increase in noninterest expense, excluding
amounts to be reimbursed by the FDIC on covered assets and prepayment penalties
for FHLB advances and other borrowings, was primarily due to an increase in
compensation and employee benefits offset by a decrease in legal expense. 

Credit cycle costs, which include other real estate owned expense, loan related
expense, and legal expense totaled $12.5 million for the fourth quarter of 2012,
as compared to $14.9 million for the third quarter of 2012 and $21.9 million for
the fourth quarter of 2011. Of the total credit cycle costs incurred in the
fourth quarter, $4.9 million is related to covered loans and other real estate
owned for which we expect that 80% or $3.9 million is reimbursable by the FDIC. 

The effective tax rate for the fourth quarter was 33.5% as compared to 32.4% in
the prior quarter. The effective tax rate was reduced from the statutory tax
rate primarily due to the utilization of tax credits related to affordable
housing investments. 

Full Year 2012 Operating Results

For the full year 2012, the adjusted net interest income totaled $793.6 million,
an increase of 2% or $14.2 million from full year 2011. Although the adjusted
net interest margin for 2012 decreased to 4.00% compared to 4.02% for 2011, the
adjusted net interest income for 2012 increased as compared to 2011 due to the
growth in average interest earning assets of 2% or $447.8 million for the year.
Further, although the low interest rate environment reduced our loan and
investment securities yields in 2012 as compared to 2011, East West took actions
throughout the year to reduce deposit and borrowing costs. Our total cost of
funds declined by 25 basis points from 0.94% for the full year 2011 to 0.69% for
the full year 2012. 

Total fees and other operating income for the full year 2012 increased to $94.7
million, a 19% or $15.1 million increase from full year 2011. As compared to
2011, branch fees decreased 1% or $172 thousand, letters of credit fees and
foreign exchange income increased 14% or $3.1 million, ancillary loan fees
increased 6% or $481 thousand and other operating income increased 82% or $11.7
million. A summary of these fees and other operating income is detailed below:

                                                       Year Ended                                              % Change        
 ($ in thousands)                                      December 31, 2012             December 31, 2011         (Yr/Yr)         
                                                                                                                               
 Branch fees                                           $          33,604             $          33,776         -1        %     
 Letters of credit fees and foreign exchange income               26,270                        23,140         14        %     
 Ancillary loan fees                                              8,831                         8,350          6         %     
 Other operating income                                           25,950                        14,270         82        %     
 Total fees & other operating income                   $          94,655             $          79,536         19        %     
                                                                                                                               


Noninterest expense totaled $422.5 million for the full year 2012, a decrease of
3% or $13.1 million as compared to 2011. 

Noninterest expense, excluding amounts to be reimbursed by the FDIC on covered
assets and prepayment penalties for FHLB advances and other borrowings, totaled
$393.9 million for the full year 2012 compared to $388.2 million for the full
year 2011.1 A summary of noninterest expense for the full year 2012, compared to
the full year 2011 is detailed below:

                                                                                                                       Year Ended                                          
                                                                                                                       December 31, 2012             December 31, 2011     
 Total noninterest expense:                                                                                            $          422,533            $          435,610    
 Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount)                                            21,730                        35,147     
 Prepayment penalties for FHLB advances and other borrowings                                                                      6,860                         12,281     
 Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances and other borrowings    $          393,943            $          388,182    
                                                                                                                                                                           


The increase in noninterest expense for the full year 2012 as compared to the
full year 2011, excluding amounts to be reimbursed by the FDIC on covered assets
and prepayment penalties for FHLB advances and other borrowings of $5.8 million
was primarily due to increases in compensation and employee benefits and
occupancy and equipment expense, partially offset by a reduction in credit cycle
costs and deposit insurance premiums and regulatory assessments. As compared to
full year 2011, compensation expense increased 7% or $11.3 million and occupancy
and equipment expense increased 11% or $5.4 million. These increases in the full
year 2012 as compared to the full year 2011 were partially offset by decreases
in other real estate owned expenses of 45% or $18.1 million, loan related
expense of 23% or $4.4 million, and deposit insurance premium of 31% or $6.4
million. 

The effective tax rate for full year 2012 was 33.8%. The effective tax rate was
reduced from the statutory tax rate primarily due to the utilization of tax
credits related to affordable housing investments. Additionally, in 2012, the
effective tax rate was further reduced due to a settlement with the California
Franchise Tax Board. 

Credit Quality

Non-covered Loans

As a result of continued credit quality improvement, nonperforming assets as of
December 31, 2012, were down to $141.0 million, a decrease of 2% from the
previous quarter and 19% from the prior year. The provision for loan losses for
non-covered loans slightly increased to $13.8 million for the fourth quarter of
2012, an increase of 3% or $452 thousand from the prior quarter, and decreased
as compared to the fourth quarter of 2011 by 30% or $6.0 million. The provision
for loan losses for non-covered loans for the full year 2012 decreased 35% to
$60.2 million as compared to the prior year. Additionally, nonaccrual loans,
excluding covered loans, totaled $108.1 million or 0.72% of total loans as of
December 31, 2012. 

Total net charge-offs on non-covered loans decreased to $9.6 million for the
fourth quarter of 2012, down from $10.6 million in the third quarter of 2012.
The allowance for non-covered loan losses was $229.4 million or 1.92% of
non-covered loans receivable at December 31, 2012. This compares to an allowance
for non-covered loan losses of $223.6 million or 2.00% of non-covered loans at
September 30, 2012 and $209.9 million or 2.04% of non-covered loans at December
31, 2011. The total nonperforming assets, excluding covered assets, to total
assets ratio was under 1.0% for the third consecutive year with nonperforming
assets of $141.0 million or 0.63% of total assets at December 31, 2012. 

Covered Loans

During the fourth quarter of 2012, the Company recorded a reversal of provision
for loan losses of $689 thousand, on covered loans outside of the scope of ASC
310-30. For the full year 2012, the company recorded $5.0 million of provision
for loan losses on covered loans outside of the scope of ASC 310-30. Charge-offs
on these loans were $35 thousand during the fourth quarter and $6.5 million
during the full year 2012. There were no charge-offs recorded on these loans in
2011. As these loans are covered under loss-sharing agreements with the FDIC,
for any charge-offs the Company records income of 80% of the charge-off amount
in noninterest income as a net increase in the FDIC receivable, resulting in a
net impact to earnings of 20% of the charge-off amount. 

Capital Strength

 (Dollars in millions)                                                                                                                                                             
                                                                                                                                                                                   
                                                         December 31, 2012       Well Capitalized Regulatory Requirement       Total Excess Above Well Capitalized Requirement     
                                                                                                                                                                                   
 Tier 1 leverage capital ratio                           9.6        %            5.00                  %                       $                         1,016                     
 Tier 1 risk-based capital ratio                         14.8       %            6.00                  %                                                 1,259                     
 Total risk-based capital ratio                          16.1       %            10.00                 %                                                 868                       
 Tangible common equity to tangible assets ratio         8.6        %            N/A                                                                     N/A                       
 Tangible common equity to risk weighted assets ratio    13.3       %            N/A                                                                     N/A                       
                                                                                                                                                                                   


Our capital ratios remain very strong. As of December 31, 2012, our Tier 1
leverage capital ratio totaled 9.6%, our Tier 1 risk-based capital ratio totaled
14.8% and our total risk-based capital ratio totaled 16.1%. 

The Company is focused on active capital management and is committed to
maintaining strong capital levels that exceed regulatory requirements while also
supporting balance sheet growth and providing a strong return to our
shareholders. In light of this commitment to our shareholders, our excellent
capital levels and strong financial performance, East West`s Board of Directors
has approved an increase in our quarterly common stock cash dividend to $0.15
per share from $0.10 per share. Further, East West`s Board of Directors has
authorized a new stock repurchase program to buy back up to $200.0 million of
the Company`s common stock. In 2012, the Company increased the common stock
dividend to $0.10 from $0.05 and repurchased a total of 9.1 million shares of
common stock at a total cost of $199.9 million. 

Dividend Payout

East West`s Board of Directors has declared first quarter dividends on the
common stock and Series A Preferred Stock. The common stock cash dividend of
$0.15 is payable on or about February 22, 2013 to shareholders of record on
February 8, 2013. This represents an increase of $0.05 per share, or a 50%
increase from the prior quarterly dividend of $0.10 per share. The dividend on
the Series A Preferred Stock of $20.00 per share is payable on February 1, 2013
to shareholders of record on January 15, 2013. 

Conference Call

East West will host a conference call to discuss fourth quarter 2012 earnings
with the public on Thursday, January 24, 2013 at 8:30 a.m. PDT/11:30 a.m. EDT.
The public and investment community are invited to listen as management
discusses fourth quarter results and operating developments. The following
dial-in information is provided for participation in the conference call: Calls
within the US - (877) 317-6789; Calls within Canada - (866) 605-3852;
International calls - (412) 317-6789. A listen-only live broadcast of the call
also will be available on the investor relations page of the Company's website
at www.eastwestbank.com. 

About East West

East West Bancorp is a publicly owned company with $22.5 billion in assets and
is traded on the Nasdaq Global Select Market under the symbol "EWBC". The
Company`s wholly owned subsidiary, East West Bank, is one of the largest
independent banks headquartered in California. East West is a premier bank
focused exclusively on the United States and Greater China markets and operates
over 120 locations worldwide, including in the United States markets of
California, New York, Georgia, Massachusetts, Texas and Washington. In Greater
China, East West`s presence includes a full service branch in Hong Kong and
representative offices in Beijing, Shenzhen and Taipei. Through a wholly-owned
subsidiary bank, East West`s presence in Greater China also includes full
service branches in Shanghai and Shantou and a representative office in
Guangzhou. For more information on East West Bancorp, visit the Company's
website at www.eastwestbank.com. 

Forward-Looking Statements

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. 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 include, but are
not limited to, local, regional, national and international economic, political
or industry conditions and events and the impact they may have on us and our
customers; our ability to attract deposits and other sources of liquidity;
continued deterioration in values of real estate in California and other states
where our bank makes loans, both residential and commercial; our ability to
manage the loan portfolios acquired from FDIC-assisted acquisitions within the
limits of the loss protection provided by the FDIC; changes in the financial
performance and/or condition of our borrowers; changes in the level of
nonperforming assets, reserve requirements, and charge-offs; the effect of
changes in laws, regulations, and accounting standards, and related costs of
these changes;inflation, interest rate, securities market and monetary
fluctuations; changes in the competitive environment among financial and bank
holding companies and other financial service providers; changes in our
organization, management; the adequacy of our enterprise risk management
framework; the ability to manage our growth and the effect of acquisitions we
may make and the integration of acquired businesses and branching efforts; our
success at managing the risks involved in the foregoing items 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, 2011, and particularly the discussion of
risk factors within that document.

1 See reconciliation of the GAAP financial measure to the non-GAAP financial
measure in the tables attached.

 EAST WEST BANCORP, INC.                                                                                                                                                                                                                    
 CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                      
 (In thousands, except per share amounts)                                                                                                                                                                                                   
 (unaudited)                                                                                                                                                                                                                                
                                                                                                                                                                                                                                            
                                                                                                                                              December 31, 2012               September 30, 2012                December 31, 2011           
 Assets                                                                                                                                                                                                                                     
                           Cash and cash equivalents                                                                                          $       1,323,106               $        1,836,372                $       1,431,185           
                           Short-term investments                                                                                                     366,378                          347,001                          61,834              
                           Securities purchased under resale agreements                                                                               1,450,000                        1,100,000                        786,434             
                           Investment securities                                                                                                      2,607,029                        2,237,848                        3,072,578           
                           Loans receivable, excluding covered loans (net of allowance for loan losses of $229,382, $223,637 and $209,876)            11,884,507                       11,074,255                       10,340,391          
                           Covered loans, net                                                                                                         2,935,595                        3,178,585                        3,923,142           
                           Total loans receivable, net                                                                                                14,820,102                       14,252,840                       14,263,533          
                           Federal Home Loan Bank and Federal Reserve Bank stock                                                                      155,278                          165,825                          184,409             
                           FDIC indemnification asset                                                                                                 316,313                          368,473                          511,135             
                           Other real estate owned, net                                                                                               32,911                           40,007                           29,350              
                           Other real estate owned covered, net                                                                                       26,808                           27,613                           63,624              
                           Premiums on deposits acquired, net                                                                                         56,285                           58,746                           67,190              
                           Goodwill                                                                                                                   337,438                          337,438                          337,438             
                           Other assets                                                                                                               1,044,462                        1,041,002                        1,159,957           
                           Total assets                                                                                                       $       22,536,110              $        21,813,165               $       21,968,667          
                                                                                                                                                                                                                                            
 Liabilities and Stockholders' Equity                                                                                                                                                                                                       
                           Deposits                                                                                                           $       18,309,354              $        17,666,427               $       17,453,002          
                           Federal Home Loan Bank advances                                                                                            312,975                          363,119                          455,251             
                           Securities sold under repurchase agreements                                                                                995,000                          995,000                          1,020,208           
                           Long-term debt                                                                                                             137,178                          137,178                          212,178             
                           Other borrowings                                                                                                           20,000                           -                                -                   
                           Accrued expenses and other liabilities                                                                                     379,481                          333,232                          516,285             
                           Total liabilities                                                                                                          20,153,988                       19,494,956                       19,656,924          
                           Stockholders' equity                                                                                                       2,382,122                        2,318,209                        2,311,743           
                           Total liabilities and stockholders' equity                                                                         $       22,536,110              $        21,813,165               $       21,968,667          
                           Book value per common share                                                                                        $       16.39                   $        15.93                    $       14.92               
                           Tangible book value per common share                                                                               $       13.55                   $        13.07                    $       12.17               
                           Number of common shares at period end                                                                                      140,294                          140,301                          149,328             
                                                                                                                                                                                                                                            
                           Ending Balances                                                                                                                                                                                                  
                                                                                                                                              December 31, 2012               September 30, 2012                December 31, 2011           
 Loans receivable                                                                                                                                                                                                                           
                           Real estate - single family                                                                                        $       2,187,323               $        2,065,622                $       1,796,635           
                           Real estate - multifamily                                                                                                  900,708                          911,781                          933,168             
                           Real estate - commercial                                                                                                   3,644,035                        3,519,601                        3,487,866           
                           Real estate - land and construction                                                                                        250,660                          250,872                          344,500             
                           Commercial                                                                                                                 4,231,265                        3,732,785                        3,142,472           
                           Consumer                                                                                                                   744,882                          674,547                          583,785             
                           Total non-covered loans receivable, excluding loans held for sale                                                          11,958,873                       11,155,208                       10,288,426          
                           Loans held for sale                                                                                                        174,317                          157,869                          278,603             
                           Covered loans, net                                                                                                         2,935,595                        3,178,585                        3,923,142           
                           Total loans receivable                                                                                                     15,068,785                       14,491,662                       14,490,171          
 Unearned fees, premiums and discounts                                                                                                                (19,301     )                    (15,185     )                    (16,762     )       
 Allowance for loan losses on non-covered loans                                                                                                       (229,382    )                    (223,637    )                    (209,876    )       
                           Net loans receivable                                                                                               $       14,820,102              $        14,252,840               $       14,263,533          
                                                                                                                                                                                                                                            
 Deposits                                                                                                                                                                                                                                   
                           Noninterest-bearing demand                                                                                         $       4,535,877               $        4,118,502                $       3,492,795           
                           Interest-bearing checking                                                                                                  1,230,372                        1,167,477                        971,179             
                           Money market                                                                                                               5,000,309                        4,785,447                        4,678,409           
                           Savings                                                                                                                    1,421,182                        1,298,431                        1,164,618           
                           Total core deposits                                                                                                        12,187,740                       11,369,857                       10,307,001          
                           Time deposits                                                                                                              6,121,614                        6,296,570                        7,146,001           
                           Total deposits                                                                                                     $       18,309,354              $        17,666,427               $       17,453,002          
                                                                                                                                                                                                                                            


 EAST WEST BANCORP, INC.                                                                                                                                                           
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                                                                                                                       
 (In thousands, except per share amounts)                                                                                                                                          
 (unaudited)                                                                                                                                                                       
                                                                                                                                                                                   
                                                                                   Quarter Ended                                                                                   
                                                                                   December 31, 2012                 September 30, 2012                  December 31, 2011         
                                                                                                                                                                                   
                 Interest and dividend income                                      $       276,521                   $        254,162                    $       268,904           
                 Interest expense                                                          (31,577   )                        (32,254   )                        (39,830   )       
                 Net interest income before provision for loan losses                      244,944                            221,908                            229,074           
                 Provision for loan losses, excluding covered loans                        (13,773   )                        (13,321   )                        (19,787   )       
                 Reversal of (provision) for loan losses on covered loans                  689                                (5,179    )                        (213      )       
                 Net interest income after provision for loan losses                       231,860                            203,408                            209,074           
                 Noninterest (loss) income                                                 (18,454   )                        2,751                              937               
                 Noninterest expense                                                       (105,206  )                        (100,956  )                        (106,672  )       
                 Income before provision for income taxes                                  108,200                            105,203                            103,339           
                 Provision for income taxes                                                36,300                             34,093                             37,133            
                 Net income                                                                71,900                             71,110                             66,206            
                 Preferred stock dividend                                                  (1,715    )                        (1,714    )                        (1,714    )       
                 Net income available to common stockholders                       $       70,185                    $        69,396                     $       64,492            
                 Net income per share, basic                                       $       0.50                      $        0.49                       $       0.44              
                 Net income per share, diluted                                     $       0.49                      $        0.48                       $       0.43              
                 Shares used to compute per share net income:                                                                                                                      
                 - Basic                                                                   138,802                            139,621                            147,332           
                 - Diluted                                                                 144,564                            145,358                            153,761           
                                                                                                                                                                                   
                                                                                                                                                                                   
                                                                                   Quarter Ended                                                                                   
                                                                                   December 31, 2012                 September 30, 2012                  December 31, 2011         
 Noninterest (loss) income:                                                                                                                                                        
                 Branch fees                                                       $       8,322                     $        8,347                      $       8,072             
                 Decrease in FDIC indemnification asset and FDIC receivable                (49,731   )                        (26,757   )                        (20,441   )       
                 Net gain on sales of loans                                                145                                5,346                              1,432             
                 Letters of credit fees and foreign exchange income                        7,932                              7,166                              5,504             
                 Net gain on sales of investment securities                                110                                93                                 2,880             
                 Net gain on sale of fixed assets                                          4,162                              40                                 38                
                 Impairment loss on investment securities                                  -                                  -                                  (169      )       
                 Ancillary loan fees                                                       2,818                              1,817                              2,228             
                 Other operating income                                                    7,788                              6,699                              1,393             
                 Total noninterest (loss) income:                                  $       (18,454   )               $        2,751                      $       937               
                                                                                                                                                                                   
 Noninterest expense:                                                                                                                                                              
                 Compensation and employee benefits                                $       41,593                    $        40,509                     $       41,068            
                 Occupancy and equipment expense                                           14,738                             14,162                             12,729            
                 Loan related expenses                                                     2,320                              4,011                              6,788             
                 Other real estate owned expense                                           4,315                              2,683                              10,697            
                 Deposit insurance premiums and regulatory assessments                     3,354                              3,461                              4,077             
                 Prepayment penalties for FHLB advances and other borrowings               3,161                              42                                 -                 
                 Legal expense                                                             5,905                              8,213                              4,407             
                 Amortization of premiums on deposits acquired                             2,461                              2,734                              2,924             
                 Data processing                                                           2,257                              2,313                              2,068             
                 Consulting expense                                                        2,257                              2,692                              1,053             
                 Amortization of investments in affordable housing partnerships            5,789                              3,378                              2,914             
                 Other operating expense                                                   17,056                             16,758                             17,947            
                 Total noninterest expense                                         $       105,206                   $        100,956                    $       106,672           
                                                                                                                                                                                   


 EAST WEST BANCORP, INC.                                                                                                                         
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                                                                                                     
 (In thousands, except per share amounts)                                                                                                        
 (unaudited)                                                                                                                                     
                                                                                                                                                 
                                                                                   Year To Date                                                  
                                                                                   December 31, 2012                  December 31, 2011          
                                                                                                                                                 
                 Interest and dividend income                                      $       1,051,095                  $       1,080,448          
                 Interest expense                                                          (132,168   )                       (177,422   )       
                 Net interest income before provision for loan losses                      918,927                            903,026            
                 Provision for loan losses, excluding covered loans                        (60,168    )                       (92,584    )       
                 Provision for loan losses on covered loans                                (5,016     )                       (2,422     )       
                 Net interest income after provision for loan losses                       853,743                            808,020            
                 Noninterest (loss) income                                                 (5,618     )                       10,924             
                 Noninterest expense                                                       (422,533   )                       (435,610   )       
                 Income before provision for income taxes                                  425,592                            383,334            
                 Provision for income taxes                                                143,942                            138,100            
                 Net income                                                                281,650                            245,234            
                 Preferred stock dividend                                                  (6,857     )                       (6,857     )       
                 Net income available to common stockholders                       $       274,793                    $       238,377            
                 Net income per share, basic                                       $       1.92                       $       1.62               
                 Net income per share, diluted                                     $       1.89                       $       1.60               
                 Shares used to compute per share net income:                                                                                    
                 - Basic                                                                   141,457                            147,093            
                 - Diluted                                                                 147,175                            153,467            
                                                                                                                                                 
                                                                                                                                                 
                                                                                   Year To Date                                                  
                                                                                   December 31, 2012                  December 31, 2011          
 Noninterest (loss) income:                                                                                                                      
                 Branch fees                                                       $       33,604                     $       33,776             
                 Decrease in FDIC indemnification asset and FDIC receivable                (122,251   )                       (100,141   )       
                 Net gain on sales of loans                                                17,045                             20,185             
                 Letters of credit fees and foreign exchange income                        26,270                             23,140             
                 Net gain on sales of investment securities                                757                                9,703              
                 Net gain on sale of fixed assets                                          4,275                              2,274              
                 Impairment loss on investment securities                                  (99        )                       (633       )       
                 Ancillary loan fees                                                       8,831                              8,350              
                 Other operating income                                                    25,950                             14,270             
                 Total noninterest (loss) income                                   $       (5,618     )               $       10,924             
                                                                                                                                                 
 Noninterest expense:                                                                                                                            
                 Compensation and employee benefits                                $       171,374                    $       160,093            
                 Occupancy and equipment expense                                           55,475                             50,082             
                 Loan related expenses                                                     14,987                             19,379             
                 Other real estate owned expense                                           22,349                             40,435             
                 Deposit insurance premiums and regulatory assessments                     14,130                             20,531             
                 Prepayment penalties for FHLB advances and other borrowings               6,860                              12,281             
                 Legal expense                                                             25,441                             21,327             
                 Amortization of premiums on deposits acquired                             10,906                             12,327             
                 Data processing                                                           9,231                              8,598              
                 Consulting expense                                                        7,984                              7,151              
                 Amortization of investments in affordable housing partnerships            18,058                             17,324             
                 Other operating expense                                                   65,738                             66,082             
                 Total noninterest expense                                         $       422,533                    $       435,610            
                                                                                                                                                 


 EAST WEST BANCORP, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 SELECTED FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 (In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                         Average Balances                                                              Quarter Ended                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                       December 31, 2012                                                                                                                                September 30, 2012                                                                                                                               December 31, 2011                                                                      
 Loans receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                         Real estate - single family                                                   $                            2,115,989                                                                                                           $                            2,039,136                                                                                                           $                            1,655,379                                                 
                         Real estate - multifamily                                                                                  904,682                                                                                                                                          902,367                                                                                                                                          937,841                                                   
                         Real estate - commercial                                                                                   3,561,495                                                                                                                                        3,506,638                                                                                                                                        3,475,800                                                 
                         Real estate - land and construction                                                                        250,573                                                                                                                                          284,294                                                                                                                                          370,577                                                   
                         Commercial                                                                                                 3,847,207                                                                                                                                        3,574,563                                                                                                                                        3,073,612                                                 
                         Consumer                                                                                                   866,041                                                                                                                                          812,321                                                                                                                                          777,201                                                   
                         Total loans receivable, excluding covered loans                                                            11,545,987                                                                                                                                       11,119,319                                                                                                                                       10,290,410                                                
                         Covered loans                                                                                              3,063,333                                                                                                                                        3,299,459                                                                                                                                        4,048,407                                                 
                         Total loans receivable                                                                                     14,609,320                                                                                                                                       14,418,778                                                                                                                                       14,338,817                                                
 Investment securities                                                                                                              2,372,972                                                                                                                                        2,084,165                                                                                                                                        3,166,140                                                 
 Earning assets                                                                                                                     20,551,226                                                                                                                                       19,774,467                                                                                                                                       19,616,560                                                
 Total assets                                                                                                                       22,413,289                                                                                                                                       21,686,220                                                                                                                                       21,837,593                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                         Noninterest-bearing demand                                                    $                            4,383,919                                                                                                           $                            3,949,807                                                                                                           $                            3,448,119                                                 
                         Interest-bearing checking                                                                                  1,204,855                                                                                                                                        1,090,227                                                                                                                                        953,668                                                   
                         Money market                                                                                               5,075,389                                                                                                                                        4,957,938                                                                                                                                        4,514,598                                                 
                         Savings                                                                                                    1,360,805                                                                                                                                        1,290,159                                                                                                                                        1,126,647                                                 
                         Total core deposits                                                                                        12,024,968                                                                                                                                       11,288,131                                                                                                                                       10,043,032                                                
                         Time deposits                                                                                              6,199,249                                                                                                                                        6,226,133                                                                                                                                        7,233,069                                                 
                         Total deposits                                                                                             18,224,217                                                                                                                                       17,514,264                                                                                                                                       17,276,101                                                
 Interest-bearing liabilities                                                                                                       15,329,374                                                                                                                                       15,094,664                                                                                                                                       15,556,295                                                
 Stockholders' equity                                                                                                               2,359,764                                                                                                                                        2,304,804                                                                                                                                        2,300,991                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                         Selected Ratios                                                               Quarter Ended                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                       December 31, 2012                                                                                                                                September 30, 2012                                                                                                                               December 31, 2011                                                                      
 For The Period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                         Return on average assets                                                                                   1.28                         %                                                                                                                   1.30                         %                                                                                                                   1.20                         %                            
                         Return on average common equity                                                                            12.26                        %                                                                                                                   12.43                        %                                                                                                                   11.54                        %                            
                         Interest rate spread                                                                                       4.53                         %                                                                                                                   4.26                         %                                                                                                                   4.42                         %                            
                         Net interest margin                                                                                        4.74                         %                                                                                                                   4.46                         %                                                                                                                   4.63                         %                            
                         Yield on earning assets                                                                                    5.35                         %                                                                                                                   5.11                         %                                                                                                                   5.44                         %                            
                         Cost of deposits                                                                                           0.40                         %                                                                                                                   0.41                         %                                                                                                                   0.55                         %                            
                         Cost of funds                                                                                              0.64                         %                                                                                                                   0.67                         %                                                                                                                   0.83                         %                            
                         Noninterest expense/average assets (1)                                                                     1.66                         %                                                                                                                   1.74                         %                                                                                                                   1.83                         %                            
                         Efficiency ratio (2)                                                                                       41.41                        %                                                                                                                   42.20                        %                                                                                                                   43.81                        %                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 (1)                     Excludes the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances and other borrowings.                                                                                                                                                                                                                                               
 (2)                     Represents noninterest expense, excluding the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances and other borrowings, divided by the aggregate of net interest income before provision for loan losses and noninterest income, excluding items that are non-recurring in nature.                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                


 EAST WEST BANCORP, INC.                                                                                                                                                                                                                                                                                                                                   
 QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID                                                                                                                                                                                                                                                                                                   
 (In thousands)                                                                                                                                                                                                                                                                                                                                            
 (unaudited)                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                           
                                                                                                    Quarter Ended                                                                                                                                                                                                                                          
                                                                                                    December 31, 2012                                                                                                                 December 31, 2011                                                                                                    
                                                                                                    Average                                                                                                                           Average                                                                                                              
                                                                                                    Volume                                              Interest                               Yield (1)                              Volume                                              Interest                               Yield (1)                 
                                                                                                                                                                                                                                                                                                                                                           
 ASSETS                                                                                                                                                                                                                                                                                                                                                    
 Interest-earning assets:                                                                                                                                                                                                                                                                                                                                  
                                             Due from banks and short-term investments              $            1,684,692                              $            4,799                     1.13         %                         $            918,784                                $            7,469                     3.23         %            
                                             Securities purchased under resale agreements                        1,723,913                                           5,790                     1.34         %                                      1,005,363                                           4,773                     1.88         %            
                                             Investment securities available-for-sale                            2,372,972                                           9,659                     1.62         %                                      3,166,140                                           22,856                    2.86         %            
                                             Loans receivable                                                    11,545,987                                          135,281                   4.66         %                                      10,290,410                                          123,478                   4.76         %            
                                             Loans receivable - covered                                          3,063,333                                           118,979                   15.45        %                                      4,048,407                                           109,498                   10.73        %            
                                             Federal Home Loan Bank and Federal Reserve Bank stock               160,329                                             2,013                     4.99         %                                      187,456                                             830                       1.76         %            
                                             Total interest-earning assets                                       20,551,226                                          276,521                   5.35         %                                      19,616,560                                          268,904                   5.44         %            
                                                                                                                                                                                                                                                                                                                                                           
 Noninterest-earning assets:                                                                                                                                                                                                                                                                                                                               
                                             Cash and cash equivalents                                           284,929                                                                                                                           276,416                                                                                                 
                                             Allowance for loan losses                                           (234,573     )                                                                                                                    (222,642     )                                                                                          
                                             Other assets                                                        1,811,707                                                                                                                         2,167,259                                                                                               
                                             Total assets                                           $            22,413,289                                                                                                           $            21,837,593                                                                                              
                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                           
 LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                      
 Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                             
                                             Checking accounts                                                   1,204,855                                           912                       0.30         %                                      953,668                                             726                       0.30         %            
                                             Money market accounts                                               5,075,389                                           4,303                     0.34         %                                      4,514,598                                           3,989                     0.35         %            
                                             Savings deposits                                                    1,360,805                                           802                       0.23         %                                      1,126,647                                           567                       0.20         %            
                                             Time deposits                                                       6,199,249                                           12,335                    0.79         %                                      7,233,069                                           18,500                    1.01         %            
                                             Federal funds purchased and other borrowings                        2,455                                               2                         0.21         %                                      20,469                                              74                        1.43         %            
                                             Federal Home Loan Bank advances                                     354,443                                             1,285                     1.44         %                                      465,408                                             2,715                     2.31         %            
                                             Securities sold under repurchase agreements                         995,000                                             11,189                    4.47         %                                      1,028,323                                           12,210                    4.71         %            
                                             Long-term debt                                                      137,178                                             749                       2.17         %                                      214,113                                             1,049                     1.94         %            
                                             Total interest-bearing liabilities                                  15,329,374                                          31,577                    0.82         %                                      15,556,295                                          39,830                    1.02         %            
                                                                                                                                                                                                                                                                                                                                                           
 Noninterest-bearing liabilities:                                                                                                                                                                                                                                                                                                                          
                                             Demand deposits                                                     4,383,919                                                                                                                         3,448,119                                                                                               
                                             Other liabilities                                                   340,232                                                                                                                           532,188                                                                                                 
                                             Stockholders' equity                                                2,359,764                                                                                                                         2,300,991                                                                                               
                                             Total liabilities and stockholders' equity             $            22,413,289                                                                                                           $            21,837,593                                                                                              
                                                                                                                                                                                                                                                                                                                                                           
 Interest rate spread                                                                                                                                                                          4.53         %                                                                                                                    4.42         %            
                                                                                                                                                                                                                                                                                                                                                           
 Net interest income and net interest margin                                                                                                            $            244,944                   4.74         %                                                                             $            229,074                   4.63         %            
                                                                                                                                                                                                                                                                                                                                                           
 Net interest income and net interest margin, adjusted (2)                                                                                              $            198,424                   3.84         %                                                                             $            204,036                   4.13         %            
                                                                                                                                                                                                                                                                                                                                                           
 (1)                                         Annualized.                                                                                                                                                                                                                                                                                                   
 (2)                                         Amounts exclude the net impact of covered loan dispositions and amortization of the FDIC indemnification asset of $46.5 million and $25.0 million for the three months ended December 31, 2012 and 2011, respectively.                                                                                        
                                                                                                                                                                                                                                                                                                                                                           


 EAST WEST BANCORP, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 SELECTED FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                              
 (In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                         Average Balances                                                                            Year To Date                                                                                                                                                                                                                                                                                                                                            
                                                                                                                     December 31, 2012                                                                                                                                                                                                      December 31, 2011                                                                                                                
 Loans receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                         Real estate - single family                                                                 $                                          2,006,644                                                                                                                                                                   $                                          1,359,223                                                                             
                         Real estate - multifamily                                                                                                              913,078                                                                                                                                                                                                                948,750                                                                               
                         Real estate - commercial                                                                                                               3,502,394                                                                                                                                                                                                              3,424,414                                                                             
                         Real estate - land and construction                                                                                                    299,527                                                                                                                                                                                                                437,843                                                                               
                         Commercial                                                                                                                             3,471,607                                                                                                                                                                                                              2,613,692                                                                             
                         Consumer                                                                                                                               830,495                                                                                                                                                                                                                884,184                                                                               
                         Total loans receivable, excluding covered loans                                                                                        11,023,745                                                                                                                                                                                                             9,668,106                                                                             
                         Covered loans                                                                                                                          3,445,693                                                                                                                                                                                                              4,369,320                                                                             
                         Total loans receivable                                                                                                                 14,469,438                                                                                                                                                                                                             14,037,426                                                                            
 Investment securities                                                                                                                                          2,475,489                                                                                                                                                                                                              3,116,671                                                                             
 Earning assets                                                                                                                                                 19,841,180                                                                                                                                                                                                             19,393,404                                                                            
 Total assets                                                                                                                                                   21,830,543                                                                                                                                                                                                             21,573,121                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                         Noninterest-bearing demand                                                                  $                                          3,902,534                                                                                                                                                                   $                                          3,087,777                                                                             
                         Interest-bearing checking                                                                                                              1,059,517                                                                                                                                                                                                              854,079                                                                               
                         Money market                                                                                                                           4,883,413                                                                                                                                                                                                              4,429,567                                                                             
                         Savings                                                                                                                                1,267,059                                                                                                                                                                                                              1,045,546                                                                             
                         Total core deposits                                                                                                                    11,112,523                                                                                                                                                                                                             9,416,969                                                                             
                         Time deposits                                                                                                                          6,435,102                                                                                                                                                                                                              7,423,695                                                                             
                         Total deposits                                                                                                                         17,547,625                                                                                                                                                                                                             16,840,664                                                                            
 Interest-bearing liabilities                                                                                                                                   15,214,933                                                                                                                                                                                                             15,727,853                                                                            
 Stockholders' equity                                                                                                                                           2,319,128                                                                                                                                                                                                              2,233,962                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                         Selected Ratios                                                                             Year To Date                                                                                                                                                                                                                                                                                                                                            
                                                                                                                     December 31, 2012                                                                                                                                                                                                      December 31, 2011                                                                                                                
 For The Period                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                         Return on average assets                                                                                                               1.29                                       %                                                                                                                                                                           1.14                                       %                                          
                         Return on average common equity                                                                                                        12.29                                      %                                                                                                                                                                           11.08                                      %                                          
                         Interest rate spread                                                                                                                   4.43                                       %                                                                                                                                                                           4.44                                       %                                          
                         Net interest margin                                                                                                                    4.63                                       %                                                                                                                                                                           4.66                                       %                                          
                         Yield on earning assets                                                                                                                5.30                                       %                                                                                                                                                                           5.57                                       %                                          
                         Cost of deposits                                                                                                                       0.43                                       %                                                                                                                                                                           0.64                                       %                                          
                         Cost of funds                                                                                                                          0.69                                       %                                                                                                                                                                           0.94                                       %                                          
                         Noninterest expense/average assets (1)                                                                                                 1.77                                       %                                                                                                                                                                           1.82                                       %                                          
                         Efficiency ratio (2)                                                                                                                   42.34                                      %                                                                                                                                                                           43.04                                      %                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 (1)                     Excludes the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances and other borrowings.                                                                                                                                                                                                                            
 (2)                     Represents noninterest expense, excluding the amortization of intangibles, amortization of premiums on deposits acquired, amortization of investments in affordable housing partnerships and prepayment penalties for FHLB advances and other borrowings, divided by the aggregate of net interest income before provision for loan losses and noninterest income, excluding items that are non-recurring in nature.                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                             


 EAST WEST BANCORP, INC.                                                                                                                                                                                                                                                                                                                                                    
 YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID                                                                                                                                                                                                                                                                                                                       
 (In thousands)                                                                                                                                                                                                                                                                                                                                                             
 (unaudited)                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                            Year To Date                                                                                                                                                                                                                                    
                                                                                                                            December 31, 2012                                                                                                                   December 31, 2011                                                                                           
                                                                                                                            Average                                                                                                                             Average                                                                                                     
                                                                                                                            Volume                                          Interest                            Yield                                           Volume                                          Interest                            Yield                   
                                                                                                                                                                                                                                                                                                                                                                            
 ASSETS                                                                                                                                                                                                                                                                                                                                                                     
 Interest-earning assets:                                                                                                                                                                                                                                                                                                                                                   
                                             Due from banks and short-term investments                                      $           1,457,153                           $           22,316                  1.53        %                                   $           1,018,490                           $           22,575                  2.22        %           
                                             Securities purchased under resale agreements                                               1,267,284                                       20,392                  1.61        %                                               1,023,043                                       19,216                  1.88        %           
                                             Investment securities available-for-sale                                                   2,475,489                                       58,184                  2.35        %                                               3,116,671                                       89,469                  2.87        %           
                                             Loans receivable                                                                           11,023,745                                      515,378                 4.68        %                                               9,668,106                                       478,724                 4.95        %           
                                             Loans receivable - covered                                                                 3,445,693                                       430,152                 12.48       %                                               4,369,320                                       467,074                 10.69       %           
                                             Federal Home Loan Bank and Federal Reserve Bank stock                                      171,816                                         4,673                   2.72        %                                               197,774                                         3,390                   1.71        %           
                                             Total interest-earning assets                                                              19,841,180                                      1,051,095               5.30        %                                               19,393,404                                      1,080,448               5.57        %           
                                                                                                                                                                                                                                                                                                                                                                            
 Noninterest-earning assets:                                                                                                                                                                                                                                                                                                                                                
                                             Cash and cash equivalents                                                                  255,975                                                                                                                             271,393                                                                                         
                                             Allowance for loan losses                                                                  (228,355    )                                                                                                                       (228,160    )                                                                                   
                                             Other assets                                                                               1,961,743                                                                                                                           2,136,484                                                                                       
                                             Total assets                                                                   $           21,830,543                                                                                                              $           21,573,121                                                                                      
                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                            
 LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                                       
 Interest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                              
                                             Checking accounts                                                                          1,059,517                                       3,163                   0.30        %                                               854,079                                         3,009                   0.35        %           
                                             Money market accounts                                                                      4,883,413                                       16,984                  0.35        %                                               4,429,567                                       20,610                  0.47        %           
                                             Savings deposits                                                                           1,267,059                                       2,795                   0.22        %                                               1,045,546                                       2,988                   0.29        %           
                                             Time deposits                                                                              6,435,102                                       52,953                  0.82        %                                               7,423,695                                       80,503                  1.08        %           
                                             Federal funds purchased and other borrowings                                               2,975                                           4                       0.14        %                                               16,684                                          458                     2.75        %           
                                             Federal Home Loan Bank advances                                                            385,644                                         6,248                   1.62        %                                               679,630                                         15,461                  2.27        %           
                                             Securities sold under repurchase agreements                                                997,938                                         46,166                  4.63        %                                               1,051,844                                       48,561                  4.62        %           
                                             Long-term debt                                                                             183,285                                         3,855                   2.10        %                                               226,808                                         5,832                   2.57        %           
                                             Total interest-bearing liabilities                                                         15,214,933                                      132,168                 0.87        %                                               15,727,853                                      177,422                 1.13        %           
                                                                                                                                                                                                                                                                                                                                                                            
 Noninterest-bearing liabilities:                                                                                                                                                                                                                                                                                                                                           
                                             Demand deposits                                                                            3,902,534                                                                                                                           3,087,777                                                                                       
                                             Other liabilities                                                                          393,948                                                                                                                             523,529                                                                                         
                                             Stockholders' equity                                                                       2,319,128                                                                                                                           2,233,962                                                                                       
                                             Total liabilities and stockholders' equity                                     $           21,830,543                                                                                                              $           21,573,121                                                                                      
                                                                                                                                                                                                                                                                                                                                                                            
 Interest rate spread                                                                                                                                                                                           4.43        %                                                                                                                       4.44        %           
                                                                                                                                                                                                                                                                                                                                                                            
 Net interest income and net interest margin                                                                                                                                $           918,927                 4.63        %                                                                                   $           903,026                 4.66        %           
                                                                                                                                                                                                                                                                                                                                                                            
 Net interest income and net interest margin, adjusted (1)                                                                                                                  $           793,571                 4.00        %                                                                                   $           779,388                 4.02        %           
                                                                                                                                                                                                                                                                                                                                                                            
 (1)                                         Amounts exclude the net impact of covered loan dispositions and amortization of the FDIC indemnification asset of $125.4 million and $123.6 million for the twelve months ended December 31, 2012 and 2011, respectively.                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                            


 QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 (In thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 (unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                        Quarter Ended                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                         12/31/2012                                                          9/30/2012                                                           6/30/2012                                                           3/31/2012                                                           12/31/2011                        
 NON-COVERED LOANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                   Allowance for non-covered loans, beginning of period                                                                                                                 $                223,637                                            $                219,454                                            $                214,253                                            $                209,876                                            $                211,738                           
                   Allowance for unfunded loan commitments and letters of credit                                                                                                                         1,565                                                               1,502                                                               274                                                                 (1,778           )                                                  197                               
                   Provision for loan losses, excluding covered loans                                                                                                                                    13,773                                                              13,321                                                              16,595                                                              16,479                                                              19,787                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                   Net Charge-offs/(Recoveries):                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                   Real estate - single family                                                                                                                                                           166                                                                 1,595                                                               273                                                                 1,295                                                               1                                 
                   Real estate - multifamily                                                                                                                                                             (160             )                                                  1,101                                                               1,021                                                               795                                                                 3,787                             
                   Real estate - commercial                                                                                                                                                              (23              )                                                  785                                                                 2,179                                                               4,342                                                               5,443                             
                   Real estate - land and construction                                                                                                                                                   4,244                                                               1,796                                                               665                                                                 3,590                                                               12,923                            
                   Commercial                                                                                                                                                                            5,124                                                               4,878                                                               6,624                                                               222                                                                 (426             )                
                   Consumer                                                                                                                                                                              242                                                                 485                                                                 906                                                                 80                                                                  118                               
                   Total net charge-offs                                                                                                                                                                 9,593                                                               10,640                                                              11,668                                                              10,324                                                              21,846                            
                   Allowance for non-covered loans, end of period                                                                                                                       $                229,382                                            $                223,637                                            $                219,454                                            $                214,253                                            $                209,876                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 COVERED LOANS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                   Allowance for covered loans, beginning of period (1)                                                                                                                 $                5,877                                              $                7,173                                              $                8,268                                              $                6,647                                              $                6,434                             
                   (Reversal of) provision for loan losses, covered loans                                                                                                                                (689             )                                                  5,179                                                               (1,095           )                                                  1,621                                                               213                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                   Net Charge-offs:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                   Real estate - land and construction                                                                                                                                                   26                                                                  1,509                                                               -                                                                   -                                                                   -                                 
                   Commercial                                                                                                                                                                            8                                                                   4,966                                                               -                                                                   -                                                                   -                                 
                   Consumer                                                                                                                                                                              1                                                                   -                                                                   -                                                                   -                                                                   -                                 
                   Total net charge-offs                                                                                                                                                                 35                                                                  6,475                                                               -                                                                   -                                                                   -                                 
                   Allowance for covered loans, end of period (1)                                                                                                                       $                5,153                                              $                5,877                                              $                7,173                                              $                8,268                                              $                6,647                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT:                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                   Allowance balance, beginning of period                                                                                                                               $                11,002                                             $                12,504                                             $                12,778                                             $                11,000                                             $                11,197                            
                   (Reversal of) provision for unfunded loan commitments and letters of credit                                                                                                           (1,565           )                                                  (1,502           )                                                  (274             )                                                  1,778                                                               (197             )                
                   Allowance balance, end of period                                                                                                                                     $                9,437                                              $                11,002                                             $                12,504                                             $                12,778                                             $                11,000                            
                   GRAND TOTAL, END OF PERIOD                                                                                                                                           $                243,972                                            $                240,516                                            $                239,131                                            $                235,299                                            $                227,523                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                   Nonperforming assets to total assets (2)                                                                                                                                              0.63             %                                                  0.66             %                                                  0.72             %                                                  0.77             %                                                  0.80             %                
                   Allowance for loan losses on non-covered loans to total gross non-covered loans held for investment at end of period                                                                  1.92             %                                                  2.00             %                                                  2.03             %                                                  2.04             %                                                  2.04             %                
                   Allowance for loan losses on non-covered loans and unfunded loan commitments to total gross non-covered loans held for investment at end of period                                    2.00             %                                                  2.10             %                                                  2.15             %                                                  2.16             %                                                  2.15             %                
                   Allowance on non-covered loans to non-covered nonaccrual loans at end of period                                                                                                       212.18           %                                                  214.85           %                                                  195.18           %                                                  177.36           %                                                  144.11           %                
                   Nonaccrual loans to total loans (3)                                                                                                                                                   0.72             %                                                  0.72             %                                                  0.78             %                                                  0.83             %                                                  1.00             %                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 (1)               This allowance is related to drawdowns on commitments that were in existence as of the acquisition dates of WFIB and UCB and, therefore, are covered under the shared-loss agreements with the FDIC. Allowance on these subsequent drawdowns is accounted for as part of the allowance for loan losses.                                                                                                                                                                                                 
 (2)               Nonperforming assets excludes covered loans and covered REOs. Total assets includes covered assets.                                                                                                                                                                                                                                                                                                                                                                                                     
 (3)               Nonaccrual loans excludes covered loans. Total loans includes covered loans.                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           


 EAST WEST BANCORP, INC.                                                                                                                                                                    
 TOTAL NON-PERFORMING ASSETS, EXCLUDING COVERED ASSETS                                                                                                                                      
 (In thousands)                                                                                                                                                                             
 (unaudited)                                                                                                                                                                                
 AS OF DECEMBER 31, 2012                                                                                                                                                                    
                                        Total Nonaccrual Loans                                                                                                                              
                                        90+ Days Delinquent              Under 90+ Days Delinquent          Total Nonaccrual Loans          REO Assets          Total                       
                                                                                                                                                                Non-Performing Assets       
 Loan Type                                                                                                                                                                                  
 Real estate - single family            $        9,809                   $          1,301                   $         11,110                $       4,590       $             15,700        
 Real estate - multifamily                       11,052                             6,788                             17,840                        -                         17,840        
 Real estate - commercial                        8,354                              9,485                             17,839                        16,489                    34,328        
 Real estate - land and construction             31,023                             637                               31,660                        11,795                    43,455        
 Commercial                                      16,743                             8,497                             25,240                        37                        25,277        
 Consumer                                        3,921                              499                               4,420                         -                         4,420         
 Total                                  $        80,902                  $          27,207                  $         108,109               $       32,911      $             141,020       
                                                                                                                                                                                            
 AS OF SEPTEMBER 30, 2012                                                                                                                                                                   
                                        Total Nonaccrual Loans                                                                                                                              
                                        90+ Days Delinquent              Under 90+ Days Delinquent          Total Nonaccrual Loans          REO Assets          Total                       
                                                                                                                                                                Non-Performing Assets       
 Loan Type                                                                                                                                                                                  
 Real estate - single family            $        7,742                   $          1,010                   $         8,752                 $       3,993       $             12,745        
 Real estate - multifamily                       11,594                             11,440                            23,034                        106                       23,140        
 Real estate - commercial                        17,229                             3,478                             20,707                        22,939                    43,646        
 Real estate - land and construction             29,065                             652                               29,717                        12,600                    42,317        
 Commercial                                      13,902                             4,241                             18,143                        37                        18,180        
 Consumer                                        3,739                              -                                 3,739                         332                       4,071         
 Total                                  $        83,271                  $          20,821                  $         104,092               $       40,007      $             144,099       
                                                                                                                                                                                            
 AS OF DECEMBER 31, 2011                                                                                                                                                                    
                                        Total Nonaccrual Loans                                                                                                                              
                                        90+ Days Delinquent              Under 90+ Days Delinquent          Total Nonaccrual Loans          REO Assets          Total                       
                                                                                                                                                                Non-Performing Assets       
 Loan Type                                                                                                                                                                                  
 Real estate - single family            $        5,055                   $          -                       $         5,055                 $       5,882       $             10,937        
 Real estate - multifamily                       11,306                             6,889                             18,195                        609                       18,804        
 Real estate - commercial                        38,046                             6,885                             44,931                        8,014                     52,945        
 Real estate - land and construction             36,090                             27,618                            63,708                        14,285                    77,993        
 Commercial                                      6,843                              4,394                             11,237                        74                        11,311        
 Consumer                                        2,506                              -                                 2,506                         486                       2,992         
 Total                                  $        99,846                  $          45,786                  $         145,632               $       29,350      $             174,982       
                                                                                                                                                                                            


 EAST WEST BANCORP, INC.                                                             
 GAAP TO NON-GAAP RECONCILIATION                                                     
 (In thousands)                                                                      
 (unaudited)                                                                         
                                                                                     
 The tangible common equity to risk weighted assets and tangible common equity to tangible assets ratios are non-GAAP disclosures. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. As the use of tangible common equity to tangible assets ratio is more prevalent in the banking industry and with banking regulators and analysts, we have included the tangible common equity to risk-weighted assets and 
 tangible common equity to tangible assets ratios.                                   
                                                                                     
                                                         As of                       
                                                         December 31, 2012           
 Stockholders' equity                                    $       2,382,122           
 Less:                                                                               
 Preferred equity                                                (83,027     )       
 Goodwill and other intangible assets                            (397,749    )       
 Tangible common equity                                  $       1,901,346           
                                                                                     
 Risk-weighted assets                                            14,284,290          
                                                                                     
 Tangible common equity to risk-weighted assets ratio            13.3        %       
                                                                                     
                                                         As of                       
                                                         December 31, 2012           
 Total assets                                            $       22,536,110          
 Less:                                                                               
 Goodwill and other intangible assets                            (397,749    )       
 Tangible assets                                         $       22,138,361          
                                                                                     
 Tangible common equity to tangible assets ratio                 8.6         %       
                                                                                     


 EAST WEST BANCORP, INC.                                                                                                                                                                                     
 GAAP TO NON-GAAP RECONCILIATION                                                                                                                                                                             
 (In thousands)                                                                                                                                                                                              
 (unaudited)                                                                                                                                                                                                 
                                                                                                                                                                                                             
 Operating noninterest expense is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. These are noninterest expense line items that are non-core in nature. Operating noninterest expense excludes such non-core noninterest expense line items. The Company believes that presenting operating noninterest expense provides more clarity to the users of financial statements regarding the 
 core noninterest expense amounts.                                                                                                                                                                           
                                                                                                                                                                                                             
                                                                                                                         Quarter Ended                                                                       
                                                                                                                         December 31, 2012             September 30, 2012              December 31, 2011     
   Total noninterest expense:                                                                                            $          105,206            $           100,956             $          106,672    
   Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount)                                            3,920                          3,005                          8,551      
   Prepayment penalties for FHLB advances and other borrowings                                                                      3,161                          42                             -          
   Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances and other borrowings    $          98,125             $           97,909              $          98,121     
                                                                                                                                                                                                             
                                                                                                                                                                                                             
                                                                                                                         Year Ended                                                                          
                                                                                                                         December 31, 2012             December 31, 2011                                     
   Total noninterest expense:                                                                                            $          422,533            $           435,610                                   
   Amounts to be reimbursed by the FDIC on covered assets (80% of actual expense amount)                                            21,730                         35,147                                    
   Prepayment penalties for FHLB advances and other borrowings                                                                      6,860                          12,281                                    
   Noninterest expense excluding reimbursable amounts and prepayment penalties for FHLB advances and other borrowings    $          393,943            $           388,182                                   
                                                                                                                                                                                                             


 EAST WEST BANCORP, INC.                                                                                                                                                                           
 GAAP TO NON-GAAP RECONCILIATION                                                                                                                                                                   
 (In thousands)                                                                                                                                                                                    
 (unaudited)                                                                                                                                                                                       
                                                                                                                                                                                                   
 The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. The net interest income on covered loans includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income on covered loans excluding such non-core items provides additional clarity to the users of financial statements regarding the covered loan yield, comparability to prior periods and the ongoing 
 performance of the Company.                                                                                                                                                                       
                                                                                                                                                                                                   
                                                                                                                         Quarter Ended December 31, 2012                                           
                                                                                                                         Average Volume                 Interest                     Yield (1)     
 Loans receivable - covered                                                                                              $         3,063,333            $    118,979                 15.45  %      
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                             (46,520  )                            
 Covered loans excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                     $    72,459                  9.41   %      
                                                                                                                                                                                                   
                                                                                                                         Quarter Ended December 31, 2011                                           
                                                                                                                         Average Volume                 Interest                     Yield (1)     
 Loans receivable - covered                                                                                              $         4,048,407            $    109,498                 10.73  %      
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                             (25,038  )                            
 Covered loans excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                     $    84,460                  8.28   %      
                                                                                                                                                                                                   
 (1) Annualized.                                                                                                                                                                                   
                                                                                                                                                                                                   


 EAST WEST BANCORP, INC.                                                                                                                                                                     
 GAAP TO NON-GAAP RECONCILIATION                                                                                                                                                             
 (In thousands)                                                                                                                                                                              
 (unaudited)                                                                                                                                                                                 
                                                                                                                                                                                             
 The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. The net interest income on covered loans includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income on covered loans excluding such non-core items provides additional clarity to the users of financial statements regarding the covered loan yield, comparability to prior periods and the ongoing 
 performance of the Company.                                                                                                                                                                 
                                                                                                                                                                                             
                                                                                                                         Year Ended December 31, 2012                                        
                                                                                                                         Average Volume             Interest                    Yield        
 Loans receivable - covered                                                                                              $         3,445,693        $     430,152               12.48  %     
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                          (125,356  )                        
 Covered loans excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                 $     304,796               8.85   %     
                                                                                                                                                                                             
                                                                                                                         Year Ended December 31, 2011                                        
                                                                                                                         Average Volume             Interest                    Yield        
 Loans receivable - covered                                                                                              $         4,369,320        $     467,074               10.69  %     
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                          (123,638  )                        
 Covered loans excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                 $     343,436               7.86   %     
                                                                                                                                                                                             


 EAST WEST BANCORP, INC.                                                                                                                                                                                                           
 GAAP TO NON-GAAP RECONCILIATION                                                                                                                                                                                                   
 (In thousands)                                                                                                                                                                                                                    
 (unaudited)                                                                                                                                                                                                                       
                                                                                                                                                                                                                                   
 The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. The net interest margin includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding such non-core items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin, comparability to prior periods 
 and the ongoing performance of the Company.                                                                                                                                                                                       
                                                                                                                                                                                                                                   
                                                                                                                                                        Quarter Ended December 31, 2012                                            
                                                                                                                                                        Average Volume                  Interest                     Yield (1)     
 Total interest-earning assets                                                                                                                          $         20,551,226            $    276,521                 5.35   %      
 Net interest income and net interest margin                                                                                                                                                 244,944                 4.74   %      
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                                                             (46,520  )                            
 Net interest income and net interest margin, excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                      $    198,424                 3.84   %      
                                                                                                                                                                                                                                   
                                                                                                                                                        Quarter Ended September 30, 2012                                           
                                                                                                                                                        Average Volume                  Interest                     Yield (1)     
 Total interest-earning assets                                                                                                                          $         19,774,467            $    254,162                 5.11   %      
 Net interest income and net interest margin                                                                                                                                                 221,908                 4.46   %      
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                                                             (25,623  )                            
 Net interest income and net interest margin, excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                      $    196,285                 3.95   %      
                                                                                                                                                                                                                                   
                                                                                                                                                        Quarter Ended December 31, 2011                                            
                                                                                                                                                        Average Volume                  Interest                     Yield (1)     
 Total interest-earning assets                                                                                                                          $         19,616,560            $    268,904                 5.44   %      
 Net interest income and net interest margin                                                                                                                                                 229,074                 4.63   %      
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                                                             (25,038  )                            
 Net interest income and net interest margin, excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                      $    204,036                 4.13   %      
                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                   
 (1) Annualized.                                                                                                                                                                                                                   
                                                                                                                                                                                                                                   


 EAST WEST BANCORP, INC.                                                                                                                                                                                                          
 GAAP TO NON-GAAP RECONCILIATION                                                                                                                                                                                                  
 (In thousands)                                                                                                                                                                                                                   
 (unaudited)                                                                                                                                                                                                                      
                                                                                                                                                                                                                                  
 The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company's performance to provide additional disclosure. The net interest margin includes amounts that are non-core in nature. As such, the Company believes that presenting the net interest income and net interest margin excluding such non-core items provides additional clarity to the users of financial statements regarding the core net interest income and net interest margin, comparability to prior periods 
 and the ongoing performance of the Company.                                                                                                                                                                                      
                                                                                                                                                                                                                                  
                                                                                                                                                        Year to Date December 31, 2012                                            
                                                                                                                                                        Average Volume                  Interest                       Yield      
 Total interest-earning assets                                                                                                                          $         19,841,180            $    1,051,095                 5.30  %    
 Net interest income and net interest margin                                                                                                                                                 918,927                   4.63  %    
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                                                             (125,356   )                         
 Net interest income and net interest margin, excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                      $    793,571                   4.00  %    
                                                                                                                                                                                                                                  
                                                                                                                                                        Year to Date December 31, 2011                                            
                                                                                                                                                        Average Volume                  Interest                       Yield      
 Total interest-earning assets                                                                                                                          $         19,393,404            $    1,080,448                 5.57  %    
 Net interest income and net interest margin                                                                                                                                                 903,026                   4.66  %    
 Less net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                                                                             (123,638   )                         
 Net interest income and net interest margin, excluding net impact of covered loan dispositions and amortization of the FDIC indemnification asset                                      $    779,388                   4.02  %    
                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                  


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East West Bancorp, Inc.
Irene Oh
Chief Financial Officer
(626) 768-6360 

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