East West Bancorp (EWBC) investor relations material

Growth outlook and guidance

• 2026 is expected to be a strong year, with loans and deposits starting on a positive trajectory and meeting expectations.

• Loan growth guidance increased to 5%-7% for the year, reflecting optimism across C&I, consumer, and small business segments.

• CRE market activity is improving, with more refinancing options and potential for further improvement if additional rate cuts occur.

• CRE growth will be constrained to maintain portfolio balance, focusing on existing strong clients rather than new customer acquisition.

• C&I growth is broad-based, supported by hiring bankers with expertise in verticals like charter schools, ESOPs, and aerospace.

Strategic initiatives and expansion

• Expansion efforts target underpenetrated markets, especially on the East Coast, with both organic and acquisition opportunities considered.

• M&A strategy is focused on incremental, smaller deals that add capabilities, such as wealth management or trust services, rather than community concentration.

• Crossing the $100 billion asset threshold is viewed more flexibly due to potential regulatory changes, with no urgency to pursue deals.

• Organic growth remains robust, with no deals since 2014, but complementary acquisitions are not ruled out.

Deposit and funding strategy

• Loan growth is expected to be funded primarily through deposit growth, with a tightening competitive landscape for deposits.

• Retention of existing deposits is prioritized over aggressive pricing, with focus on small business and consumer account growth.

• Net interest income growth is tied to loan growth, with risks mainly from unexpected interest rate cuts.

• Balance sheet risk management includes a shift to fixed-rate securities and maintaining strong liquidity through repo facilities and treasuries.