Other comprehensive income (loss)

Net income

872,981

(134,706)

Issuance of common stock pursuant to various stock compensation plans and agreements (in shares)

550,045

Issuance of common stock pursuant to various stock compensation plans and agreements

35,206

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares)

(207,320)

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements

$ (15,702)

Cash dividends on common stock

(189,736)

Ending balance (in shares) at Dec. 31, 2021

141,907,954

Ending balance at Dec. 31, 2021

5,837,218

1,893,725

4,683,659

(649,785)

(90,381)

Other comprehensive income (loss)

Net income

1,128,083

(675,248)

Issuance of common stock pursuant to various stock compensation plans and agreements (in shares)

671,871

Issuance of common stock pursuant to various stock compensation plans and agreements

42,832

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares)

(246,462)

(1,385,517)

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements

(19,087)

$ (99,990)

(19,087)

$ (99,990)

Cash dividends on common stock

(229,196)

Ending balance (in shares) at Dec. 31, 2022

140,947,846

Ending balance at Dec. 31, 2022

5,984,612

1,936,557

5,582,546

(768,862)

(765,629)

Ending balance (Accounting Standards Update 2022-02) at Dec. 31, 2022

^[1]

$ (4,262)

Other comprehensive income (loss)

Net income

1,161,161

145,033

Issuance of common stock pursuant to various stock compensation plans and agreements (in shares)

913,185

Issuance of common stock pursuant to various stock compensation plans and agreements

44,430

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements (in shares)

(327,573)

(1,506,091)

Repurchase of common stock pursuant to the Stock Repurchase Program/various stock compensation plans and agreements

$ (23,751)

$ (82,174)

$ (23,751)

$ (82,174)

Cash dividends on common stock

(274,215)

Ending balance (in shares) at Dec. 31, 2023

140,027,367

Ending balance at Dec. 31, 2023

$ 6,950,834

$ 1,980,987

$ 6,465,230

$ (874,787)

$ (620,596)

Accounting Standards Update [Extensible List]

Accounting Standards Update 2022-02

[1]

Represents the change in the Company’s allowance for loan losses as a result of the adoption of Accounting Standards Update (“ASU”) 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures on January 1, 2023. Refer to Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Annual Report on Form 10-K (“this Form 10-K”) for additional information.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 1.92	$ 1.60	$ 1.32

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,161,161	$ 1,128,083	$ 872,981
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (reversal of) credit losses	125,000	73,500	(35,000)
Depreciation and amortization	163,460	159,851	156,792
Accretion of discount and (amortization of premiums), net	10,723	56,703	67,415
Stock compensation costs	39,867	37,601	32,567
Deferred income tax (benefit) expense	(49,139)	(43,988)	4,762
Net gains on sales of loans	(3,634)	(6,411)	(8,909)
Net losses (gains) on AFS debt securities	6,862	(1,306)	(1,568)
Net gains on sales of other real estate owned ("OREO") and other foreclosed assets	(3,451)	(3,042)	(1,977)
Impairment on OREO and other foreclosed assets	0	6,861	5,151
Loans held-for-sale:
Originations and purchases	(116)	(447)	(11,155)
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale	0	461	12,552
Proceeds from distributions received from equity method investees	11,282	7,586	13,117
Net change in accrued interest receivable and other assets	(146,270)	187,512	124,496
Net change in accrued expenses and other liabilities	105,304	461,385	(63,360)
Other operating activities, net	3,860	1,673	558
Total adjustments	263,748	937,939	295,441
Net cash provided by operating activities	1,424,909	2,066,022	1,168,422
Net (increase) decrease in:
Investments in qualified affordable housing partnerships, tax credit and other investments	(228,550)	(167,303)	(189,836)
Interest-bearing deposits with banks	128,523	596,994	73,263
Resale agreements:
Proceeds from paydowns and maturities	219,917	1,951,388	982,694
Purchases	(212,725)	(390,077)	(1,876,197)
AFS debt securities:
Proceeds from sales	3,138	129,181	308,812
Proceeds from repayments, maturities and redemptions	1,470,819	896,726	1,766,184
Purchases	(1,549,846)	(1,070,608)	(6,779,655)
HTM debt securities:
Proceeds from repayments, maturities and redemptions	61,744	75,635	0
Purchases	0	(50,000)	0
Loans held-for-investment:
Proceeds from sales of loans originally classified as held-for-investment	711,862	602,725	606,410
Purchases	(600,930)	(657,620)	(1,045,456)
Other changes in loans held-for-investment, net	(4,166,572)	(6,516,182)	(2,877,438)
Proceeds from sales of OREO and other foreclosed assets	3,721	6,482	54,338
Purchase of bank-owned life insurance	0	(734)	(150,000)
Distributions received from equity method investees	23,774	18,221	14,440
Other investing activities, net	(112,036)	(7,720)	(4,763)
Net cash used in investing activities	(4,247,161)	(4,582,892)	(9,117,204)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits	144,468	2,709,427	8,464,285
Net increase (decrease) in short-term borrowings	4,500,000	6	(21,143)
FHLB advances:
Proceeds	6,000,000	4,950,200	400
Repayments	(6,000,000)	(5,200,200)	(405,400)
Repurchase agreements:
Repayment	(300,000)	0	0
Extinguishment cost	(3,872)	0	0
Long-term debt and lease liabilities:
Repayments of long-term debt and lease liabilities	(871)	(943)	(1,206)
Common stock:
Proceeds from issuance pursuant to various stock compensation plans and agreements	3,208	3,178	2,573
Stocks tendered for payment of withholding taxes	(23,751)	(19,087)	(15,702)
Repurchase of common stocks pursuant to the Stock Repurchase Program	(82,174)	(99,990)	0
Cash dividends paid	(274,554)	(228,381)	(188,762)
Net cash provided by financing activities	3,962,454	2,114,210	7,835,045
Effect of exchange rate changes on cash and cash equivalents	(7,002)	(28,491)	8,701
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,133,200	(431,151)	(105,036)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	3,481,784	3,912,935	4,017,971
CASH AND CASH EQUIVALENTS, END OF YEAR	4,614,984	3,481,784	3,912,935
Cash paid during the year for:
Interest	1,213,319	249,587	87,684
Income taxes, net	291,685	281,269	139,460
Noncash investing and financing activities:
Loans transferred from held-for-investment to held-for-sale	739,379	623,777	599,610
Securities transferred from AFS to HTM debt securities	0	3,010,003	0
Loans transferred to OREO	$ 11,141	$ 270	$ 49,485

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Organization

East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The Bank is the Company’s principal asset. As of December 31, 2023, the Company operated in over 120 locations in the United States (“U.S.”) and Asia. In the U.S., the Bank’s corporate headquarters and main administrative offices a located in California, and its branches and offices are located in California, Texas, New York, Washington, Georgia, Massachusetts, Illinois, and Nevada. In Asia, East West’s presence included full-service branches in Hong Kong, Shanghai, Shantou and Shenzhen, representative offices in Beijing, Chongqing, Guangzhou, Xiamen and Singapore, and administrative support offices in Beijing and Shanghai. The Bank has a banking subsidiary based in China — East West Bank (China) Limited.

Significant Accounting Policies

Basis of Presentation — The accounting and reporting policies of the Company conform with the U.S. Generally Accepted Accounting Principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and common practices in the banking industry. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting period, and the related disclosures. Actual results could differ materially from those estimates. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2023 presentation.

Principles of Consolidation — The Consolidated Financial Statements in this Form 10-K include the accounts of East West and its subsidiaries that are majority owned and in which the Company has a controlling financial interest. In accordance with the applicable accounting guidance for consolidation, the Company first determines if it has a variable interest in the entity. A variable interest entity (“VIE”) is an entity that lacks equity investors or whose equity investors do not have a controlling financial interest in the entity through their equity investments. If it is determined that the Company does not have a variable interest in the entity, no further analysis is required and the entity is not consolidated. The Company consolidates a VIE when the Company has a controlling financial interest in the entity and therefore is deemed to be the primary beneficiary. The primary beneficiary of a VIE is determined if the Company has: i) both the power and ability to direct activities of the VIE that most significantly affect the entity’s economic performance; and ii) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. For an entity that does not meet the definition of a VIE, the entity is determined to be a voting interest entity. The Company consolidates a voting interest entity if it can exert control over the financial and operating policies of an investee, which can occur if the Company has a more than 50% voting interest in the entity. For unconsolidated voting interest entities or VIE, the Company uses the equity, cost or measurement alternative method based on the Company’s voting or economic interest.

Intercompany transactions and accounts have been eliminated in consolidation. East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 810, Consolidation, the Trusts are not included in the Consolidated Financial Statements.

Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank of San Francisco (“FRBSF”) and other financial institutions, and federal funds sold with original maturities up to three months.

Interest-Bearing Deposits with Banks — Interest-bearing deposits with banks include cash placed with other banks with original maturities greater than three months and less than one year.

Assets Purchased under Resale Agreements and Assets Sold under Repurchase Agreements — Resale agreements are recorded as receivables based on the values at which the securities or loans are acquired. Repurchase agreements are accounted for as collateralized financing transactions and recorded as liabilities based on the values at which the securities are sold. The Company monitors the values of the underlying assets collateralizing the resale and repurchase agreements, including accrued interest, and obtains or posts additional collateral in order to maintain the appropriate collateral requirements for the transactions. For allowance for credit losses on resale agreements, refer to the Allowance for Collateral-Dependent Financial Assets section of this note for details.

Securities — The Company’s securities include various debt securities, marketable and non-marketable equity securities. Debt securities are recorded on the Consolidated Balance Sheet as of their trade dates. The Company initially classifies its debt securities as trading securities, AFS or HTM debt securities based on management’s intention on the date of the purchase. Debt securities are purchased for liquidity and investment purposes, as part of asset/liability management and other strategic activities.

Debt securities for which the Company has the positive intention and ability to hold until maturity are classified as HTM and are carried at amortized cost, net of allowance for credit losses. Debt securities not classified as trading securities or HTM securities are classified as AFS. AFS debt securities are reported at fair value, net of the allowance for credit losses, with unrealized gains and losses recorded in AOCI, net of applicable income taxes. For details of the allowance for credit losses on debt securities, refer to the Allowance for Credit Losses on Available-for-Sale and Held-to-Maturity Debt Securities sections of this note. Interest income, including any amortization of premium or accretion of discount, is included in net income. The Company recognizes realized gains and losses on the sale of AFS debt securities in earnings, using the specific identification method.

Upon transfer of a debt security from the AFS to HTM category, the security’s new amortized cost is reset to fair value, reduced by any previous write-offs but excluding any allowance for credit losses. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income over the remaining life of the securities as effective yield adjustments, in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. For transfers of securities from the AFS to HTM category, any allowance for credit losses that was previously recorded under the AFS model is reversed and an allowance for credit losses is subsequently recorded under the HTM debt security model. The reversal and re-establishment of the allowance for credit losses are recorded in the provision for credit losses.

Marketable equity securities with readily determinable fair values are recorded at fair value with unrealized gains and losses due to changes in fair value; and are included in Other investment income on the Consolidated Statement of Income. Marketable equity securities include mutual fund investments, which are included in Investments in qualified affordable housing partnership, tax credit and other investments, net on the Consolidated Balance Sheet.

Non-marketable equity securities including tax credit investments, and other equity investments that do not have readily determinable fair values are recorded in Investments in qualified affordable housing partnership, tax credit and other investments, net, and Other assets on the Consolidated Balance Sheet and are accounted for under one of the following accounting methods:

•Equity Method — When the Company has the ability to exercise significant influence over the investee.

•Cost Method — The cost method is applied to restricted equity securities held for membership and regulatory purposes, such as FRBSF and FHLB stock. These investments are held at their cost minus impairment. If impaired, the carrying value is written down to the fair value of the security.

•Measurement Alternative — This method is applied to all remaining non-marketable equity securities. These securities are carried at cost adjusted for impairment, if any, plus or minus observable price changes in orderly transactions of an identical or similar security of the same issuer.

The Company’s impairment review for equity method, cost method and measurement alternative securities typically includes an analysis of the facts and circumstances of each security, the intent or requirement to sell the security, the expectations of cash flows, capital needs and the viability of its business model. For equity method and cost method investments, the Company reduces the asset’s carrying value when the Company considers declines in value to be other-than-temporary impairment (“OTTI”). For securities accounted for under the measurement alternative, the Company reduces the asset value when the fair value is less than the carrying value, without the consideration of recovery.

Loans Held-for-Sale — Loans are initially classified as loans held-for-sale when they are individually identified as being available for immediate sale and management has committed to a formal plan to sell them. Loans held-for-sale are carried at lower of cost or fair value. Subject to periodic review under the Company’s evaluation process, including asset/liability and credit risk management, the Company may transfer certain loans from held-for-investment to held-for-sale measured at lower of cost or fair value. Any write-downs in the carrying amount of the loan at the date of transfer are recorded as charge-offs to allowance for loan losses. Loan origination fees on loans held-for-sale, net of certain costs in processing and closing the loans, are deferred until the time of sale and are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. If the loan or a portion of the loan cannot be sold, it is subsequently transferred back to the loans held-for-investment portfolio from the loans held-for-sale portfolio at the lower of cost or fair value on the transfer date.

Loans Held-for-Investment — At the time of commitment to originate or purchase a loan, the loan is determined to be held-for-investment if it is the Company’s intent to hold the loan to maturity or for the foreseeable future. Loans held-for-investment are stated at their outstanding principal, reduced by an allowance for loan losses and net of deferred loan fees or costs, or unearned fees on originated loans, net of unamortized premiums or unaccreted discounts on purchased loans. Nonrefundable fees and direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The deferred net loan fees and costs are recognized in interest income as an adjustment to yield over the loan term using the effective interest method. Discounts/premiums on purchased loans are accreted/amortized to interest income using the effective interest method over the remaining contractual maturity. Interest on loans is calculated using the simple-interest method on daily balances of the principal amounts outstanding. Generally, loans are placed on nonaccrual status when they become 90 days past due or more. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes uncertain, regardless of the length of past due status. Once a loan is placed on nonaccrual status, interest accrual is discontinued and all unpaid accrued interest is reversed against interest income. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income. A loan is returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan.

Loan Modifications — Certain loans are modified in the normal course of business for competitive reasons or in conjunction with the Company’s loss mitigation activities. Upon the adoption of ASU 2022-02 on January 1, 2023, the Company applies the general loan modification guidance provided in ASC 310-20 to all loan modifications, including modifications made to borrowers experiencing financial difficulty. Under the general loan modification guidance, a modification is treated as a new loan only if the following two conditions are met: (1) the terms of the new loan are at least as favorable to the Company as the terms for comparable loans to other customers with similar collection risks; and (2) modifications to the terms of the original loan are more than minor. If either condition is not met, the modification is accounted for as a continuation of the existing loan with any effect of the modification treated as a prospective adjustment to the loan’s effective interest rate. A modification made to borrowers experiencing financial difficulty may vary by program and by borrower-specific characteristics, and may include rate reductions, principal forgiveness, term extensions, and payment delays, and is intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of collateral. The Company applies the same credit loss methodology it uses for similar loans that were not modified.

Troubled Debt Restructurings — Prior to the adoption of ASU 2022-02, a loan was generally classified as a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that the Company would not otherwise consider. The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, a term extension, a payment forbearance and other actions. Loans with contractual terms that were modified as a TDR and were current at the time of restructuring may remain on accrual status if there was demonstrated performance prior to the restructuring and payment in full under the restructured terms was expected. Otherwise, these loans were placed on nonaccrual status and were reported as nonperforming, until the borrower demonstrated a sustained period of performance, generally six months, and the ability to repay the loan according to the contractual terms. If accruing TDRs ceased to perform in accordance with their modified contractual terms, they were placed on nonaccrual status and reported as nonperforming TDRs. TDRs were included in the quarterly allowance for credit losses valuation process.

Allowance for Loan Losses — The allowance for loan losses is established as management’s estimate of expected credit losses inherent in the Company’s lending activities; it is increased by the provision for credit losses and decreased by net charge-offs. The allowance for loan losses is evaluated quarterly by management based on regular reviews of the collectability of the Company’s loans, and more often if deemed necessary. The Company develops and documents the allowance for loan losses methodology at the portfolio segment level. The commercial loan portfolio is comprised of commercial and industrial (“C&I”), commercial real estate (“CRE”), multifamily residential, and construction and land loans; and the consumer loan portfolio is comprised of single-family residential, home equity lines of credit (“HELOCs”), and other consumer loans.

The allowance for loan losses represents the portion of a loan’s amortized cost basis that the Company does not expect to collect due to anticipated credit losses over the loan’s contractual life, adjusted for prepayments. The Company measures the expected loan losses on a collective pool basis when similar risk characteristics exist. Models consisting of quantitative and qualitative components are designed for each pool to develop the expected credit loss estimates. Reasonable and supportable forecast periods vary by loan portfolio. The Company has adopted lifetime loss rate models for the portfolios, which use historical loss rates and forecast economic variables to calculate the expected credit losses for each loan pool. When loans do not share similar risk characteristics, the Company evaluates the loan for expected credit losses on an individual basis. Individually assessed loans include nonaccrual loans. The Company evaluates loans for expected credit losses on an individual basis if, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement. When the loan is deemed uncollectible, it is the Company’s policy to charge off the uncollectible amount against the allowance for loan losses.

The amortized cost of loans held-for-investment excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election to not recognize an allowance for loan losses for accrued interest receivables as the Company reverses accrued interest if a loan is on nonaccrual status.

The allowance for loan losses is reported separately on the Consolidated Balance Sheet and the Provision for credit losses is reported on the Consolidated Statement of Income.

Allowance for Unfunded Credit Commitments — The allowance for unfunded credit commitments includes reserves provided for unfunded loan commitments, letters of credit, standby letters of credit (“SBLCs”) and recourse obligations for loans sold. The Company estimates the allowance for unfunded credit commitments over the contractual period in which the entity is exposed to credit risk via a present contractual obligation to extend credit. Within the period of credit exposure, the Company considers both the likelihood that funding will occur, and the expected credit losses on the commitments that are expected to fund over their estimated lives.

The allowance for unfunded credit commitments is maintained at a level believed by management to be sufficient to absorb expected credit losses related to unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities. For all off-balance sheet instruments and commitments, the unfunded credit exposure is calculated using assumptions based on the Company's historical utilization experience in related portfolio segments. Loss rates are applied to the calculated exposure balances to estimate the allowance for unfunded credit commitments. Other elements such as credit risk factors for loans outstanding, terms and expiration dates of the unfunded credit facilities, and other pertinent information are considered to determine the adequacy of the allowance.

The allowance for unfunded credit commitments is included in the Accrued expenses and other liabilities on the Consolidated Balance Sheet. Changes to the allowance for unfunded credit commitments are included in Provision for credit losses on the Consolidated Income Statements.

Allowance for Credit Losses on Available-for-Sale Debt Securities — For each reporting period, each AFS debt security that is in an unrealized loss position is individually analyzed as part of the Company’s ongoing assessments to determine whether a fair value below the amortized cost basis has resulted from a credit loss or other factors. The initial indicator of impairment is a decline in fair value below the amortized cost of the AFS debt security, excluding accrued interest. The Company first considers whether there is a plan to sell the AFS debt security or it is more-likely-than-not that it will be required to sell the AFS debt security before recovery of the amortized cost. In determining whether an impairment is due to credit related factors, the Company considers the severity of the decline in fair value, nature of the security, the underlying collateral, the financial condition of the issuer, changes in the AFS debt security’s ratings and other qualitative factors. For AFS debt securities that are guaranteed or issued by the U.S. government, or government-sponsored enterprises of high credit quality, the Company applies a zero credit loss assumption.

When the Company does not intend to sell the impaired AFS debt security and it is more-likely-than-not that the Company will not be required to sell the impaired debt security prior to recovery of its amortized cost basis, the credit component of the unrealized loss of the impaired AFS debt security is recognized as an allowance for credit losses, with a corresponding Provision for credit losses on the Consolidated Statement of Income and the non-credit component is recognized in Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, net of applicable taxes. At each reporting period, the Company increases or decreases the allowance for credit losses as appropriate, while limiting reversals of the allowance for credit losses to the extent of the amounts previously recorded. If the Company intends to sell the impaired debt security or it is more-likely-than-not that the Company will be required to sell the impaired debt security prior to recovering its amortized cost basis, the entire impairment amount is recognized as an adjustment to the debt security’s amortized cost basis, with a corresponding Provision for credit losses on the Consolidated Statement of Income.

The amortized cost of the Company’s AFS debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on AFS debt securities as the Company reverses any accrued interest if a debt security is impaired. As each AFS debt security has a unique security structure, where the accrual status is clearly determined when certain criteria listed in the terms are met, the Company assesses the default status of each security as defined by the debt security’s specific security structure.

Allowance for Credit Losses on Held-to-Maturity Debt Securities — For each major HTM debt security type, the allowance for credit losses is estimated collectively for groups of securities with similar risk characteristics. For securities that do not share similar risk characteristics, the losses are estimated individually. The Company applies a zero credit loss assumption to certain HTM debt securities, including debt securities that are either guaranteed or issued by the U.S. government or government-sponsored enterprises, are highly rated by nationally recognized statistical rating organizations (“NRSROs”), and have a long history of no credit losses. Any expected credit loss is recorded through the allowance for credit losses and deducted from the amortized cost basis of the security, reflecting the net amount the Company expects to collect.

The amortized cost of the Company’s HTM debt securities excludes accrued interest, which is included in Other assets on the Consolidated Balance Sheet. The Company has made an accounting policy election not to recognize an allowance for credit losses for accrued interest receivables on HTM debt securities, as the Company reverses any accrued interest against interest income if a debt security is placed on nonaccrual status. The criteria used to place HTM debt securities on nonaccrual are largely similar to those described for loans. Any cash collected on nonaccrual HTM debt securities is applied to reduce the security’s amortized cost basis and not as interest income. Generally, the Company returns an HTM security to accrual status when all delinquent interest and principal become current under the contractual terms of the security, and the collectability of remaining principal and interest is no longer doubtful.

Allowance for Collateral-Dependent Financial Assets — A financial asset is considered collateral-dependent if repayment is expected to be provided substantially through the operation or sale of the collateral. The allowance for credit losses is measured on an individual basis for collateral-dependent financial assets and determined by comparing the fair value of the collateral less the cost to sell, to the amortized cost basis of the related financial asset at the reporting date. Other than loans, collateral-dependent financial assets could also include resale agreements. In arrangements which the borrower must continually adjust the collateral securing the asset to reflect changes in the collateral’s fair value (e.g., resale agreements), the Company estimates the expected credit losses on the basis of the unsecured portion of the amortized cost as of the balance sheet date. If the fair value of the collateral is equal to or greater than the amortized cost of the resale agreement, the expected losses would be zero. If the fair value of the collateral is less than the amortized cost of the asset, the expected losses are limited to the difference between the fair value of the collateral and the amortized cost basis of the resale agreement.

Allowance for Purchased Credit Deteriorated Assets — Purchased assets that have experienced a more-than-insignificant deterioration in credit quality since origination are deemed Purchased Credit Deteriorated (“PCD”) assets. For PCD HTM debt securities and PCD loans, the company records the allowance for credit losses by grossing up the initial amortized cost, which includes the purchase price and the allowance for credit losses. The expected credit losses of PCD debt securities are measured at the individual security level. The expected credit losses for PCD loans are measured based on the loan’s unpaid principal balance. Under this approach, there is no income statement impact from the acquisition. Subsequent changes in the allowance for credit losses on PCD assets will be recognized in Provision for credit losses on the Consolidated Statement of Income. The non-credit discount or premium will be accreted to interest income based on the effective interest rate on the PCD assets determined after the gross-up for the allowance for credit losses.

Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company records the investments in qualified affordable housing partnerships, net, primarily using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the amortization in Income tax expense on the Consolidated Statement of Income.

The Company records investments in tax credit and other investments, net, using either the equity method or the measurement alternative method of accounting. The tax credits are recognized on the Consolidated Financial Statements to the extent they are utilized on the Company’s income tax returns in the year the credit arises under the flow-through method of accounting. The investments are evaluated for possible OTTI on an annual basis or on an interim basis, if an event occurs that would trigger potential impairment. OTTI charges and impairment recoveries are recorded within Amortization of tax credit and other investments on the Consolidated Statement of Income. See Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K for a discussion on the Company’s impairment evaluation and monitoring process of tax credit investments.

Premises and Equipment, Net — The Company’s premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed based on the straight-line method over the estimated useful lives of the various classes of assets. The ranges of estimated useful lives for the principal classes of assets are as follows:



Premises and Equipment						Useful Lives
Buildings						25 years
Furniture, fixtures and equipment, and building improvements						3 to 7 years
Leasehold improvements						Term of lease or useful life, whichever is shorter

The Company reviews its long-lived assets for impairment annually, or when events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. An asset is considered impaired when the fair value, which is the expected undiscounted cash flows over the remaining useful life, is less than the net book value. The excess of the net book value over its fair value is charged as impairment loss to noninterest expense.

Goodwill — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in an acquisition. Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur or circumstances change that indicate a potential impairment at the reporting unit level. The Company assesses goodwill for impairment at each operating segment level. The Company organizes its operations into three reporting segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. For information on how the reporting units are identified and the components are aggregated, see Note 17 — Business Segments to the Consolidated Financial Statements in this Form 10-K. The Company has the option to perform a qualitative assessment of goodwill or elect to bypass the qualitative test and proceed directly to a quantitative test. If the Company performs a qualitative assessment of goodwill to test for impairment and concludes it is more likely than not that a reporting unit’s fair value is greater than its carrying value, quantitative tests are not required. If the qualitative analysis indicates that it is more likely than not that a reporting unit’s fair value is less than its carrying value, the Company is required to perform a quantitative assessment to determine if there is goodwill impairment. Factors considered in the qualitative assessments include but are not limited to macroeconomic conditions, industry and market considerations, financial performance of the respective operating segment and other reporting unit specific considerations. The Company uses a combined income and market approach in its quantitative valuation methodologies. A quantitative valuation involves determining the fair value of each reporting unit and comparing the fair value to its corresponding carrying value. Goodwill impairment loss is recorded as a charge to noninterest expense and an adjustment to the carrying value of goodwill. Subsequent reversals of goodwill impairment are not allowed.

Derivatives — As part of its asset/liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate and foreign currency risks, and to assist customers with their risk management objectives. Derivatives utilized by the Company include primarily swaps, forwards and option contracts. Derivative instruments are included in Other assets or Accrued expenses and other liabilities on the Consolidated Balance Sheet at fair value. The related cash flows are recognized on the Cash flows from operating activities section on the Consolidated Statement of Cash Flows. The Company uses its accounting hedges based on the exposure being hedged as either fair value hedges, cash flow hedges or hedges of the net investments in certain foreign operations. For fair value hedges of interest rate risk, changes in fair value of derivatives are reported within Interest expense on the Consolidated Statement of Income. Changes in fair value of derivatives designated as hedges of the net investments in foreign operations are recorded as a component of AOCI. For cash flow hedges of floating-rate interest payments or receipts, the change in the fair value of hedges is recognized in AOCI on the Consolidated Balance Sheet and reclassified to earnings in the same period when the hedged cash flows impact earnings. Reclassified gains and losses of cash flow hedges are recorded in the same line item as the hedged interest payment within Interest expense or as interest receipts within Interest and dividend income on the Consolidated Statements of Income.

All derivatives designated as fair value hedges and hedges of the net investments in certain foreign operations are linked to specific hedged items or to groups of specific assets and liabilities on the Consolidated Balance Sheet. Cash flow hedges are linked to the forecasted transactions related to a recognized asset or liability. To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not sought), a derivative must be highly effective in offsetting the risk designated as being hedged. The Company formally documents its hedging relationships at inception, including the identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction at the time the derivative contract is executed. Subsequent to inception, on a quarterly basis, the Company assesses whether the derivatives used in hedging transactions are highly effective in offsetting changes in the fair value of the hedged items or the cash flows of attributable hedged risks. The quarterly assessment is performed on both a prospective basis (to reconfirm forward-looking expectations that the hedge will be highly effective) and a retrospective basis (to determine whether the hedging relationship was highly effective).

The Company discontinues hedge accounting prospectively when (i) a derivative is no longer highly effective in offsetting changes in fair value; (ii) a derivative expires, or is sold, terminated or exercised, or (iii) the Company determines that designation of a derivative as a hedge is no longer appropriate. If a fair value hedge is discontinued, the derivative will continue to be recorded on the Consolidated Balance Sheet at fair value with changes in fair value recognized on the Consolidated Statement of Income. When the hedged net investment is discontinued, any amounts that have not yet been recognized in earnings remain in AOCI until the net investment is either sold or substantially liquidated where the changes in the fair value of the derivatives are reclassified out of AOCI into Foreign exchange income on the Consolidated Statement of Income. If a cash flow hedge is discontinued but the hedged forecasted cash flow is still expected to happen, the derivative net gain or loss will remain in AOCI and be reclassified into earnings in the periods in which the hedged forecasted cash flow affects earnings. If a cash flow hedge is discontinued and when it becomes probable that the forecasted cash flow is not expected to happen, the derivative net gain or loss will be reclassified into earnings immediately.

The Company also offers various interest rate, commodity and foreign exchange derivative products to customers. These transactions are not linked to specific assets or liabilities on the Consolidated Balance Sheet or to forecasted transactions in a hedging relationship and, therefore, do not qualify for hedge accounting. These contracts are recorded at fair value with changes in fair value recorded in Customer derivative income or Foreign exchange income on the Consolidated Statement of Income.

As part of the Company’s loan origination process, from time to time, the Company obtains equity warrants to purchase preferred and/or common stock of public or private companies it provides loans to. Separately, the Company granted performance-based restricted stock units (“RSUs”) as part of its consideration for its investment in Rayliant Global Advisors Limited (“Rayliant”) during the third quarter of 2023. The vesting of these performance-based RSUs is contingent on Rayliant meeting certain financial performance targets during the future performance period. These equity contracts are accounted for as derivatives and recorded at fair value in Other assets or Accrued expenses and other liabilities on the Consolidated Balance Sheet with changes in fair value recorded in Lending fees or Customer derivative income on the Consolidated Statement of Income.

The Company is exposed to counterparty credit risk, which is the risk that counterparties to the derivative contracts do not perform as expected. Valuation of derivative assets and liabilities reflect the value of the instrument inclusive of the nonperformance risk. The Company uses master netting arrangements to mitigate counterparty credit risk in derivative transactions. To the extent the derivatives are subject to master netting arrangements, the Company takes into account the impact of master netting arrangements that allow the Company to settle all derivative contracts executed with the same counterparty on a net basis, and to offset the net derivative position with the related cash and securities collateral. The Company elects to offset derivative transactions with the same counterparty on the Consolidated Balance Sheet when a derivative transaction has a legally enforceable master netting arrangement and when it is eligible for netting under ASC 210-20-45-1, Balance Sheet Offsetting: Netting Derivative Positions on Balance Sheet. Derivative balances and related cash collateral are presented net on the Consolidated Balance Sheet. In addition, the Company applies the Settlement to Market treatment for the cash collateralizing our interest rate and commodity contracts with certain centrally cleared counterparties. As a result, derivative balances with these counterparties are considered settled by the collateral.

Fair Value — The Company records or discloses certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value of financial instruments, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing an asset or a liability. These inputs can be readily observable, market corroborated or generally unobservable. Fair value measurements are based on the exit price notion that maximizes the use of observable inputs and minimizes the use of unobservable inputs. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy that assigns the highest priority to quoted prices in active markets and the lowest priority to prices derived from data lacking transparency. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements. The fair value of the Company’s assets and liabilities is classified and disclosed in one of the following three categories:

•Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets.

•Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data.

•Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities.

For additional information on fair value, see Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K.

Stock-Based Compensation — The Company grants time-based RSUs, which include service conditions for vesting. Compensation cost for these time-based awards is based on the quoted market price of the Company’s common stock at the grant date. Compensation costs for time-based RSUs that will be settled in cash instead of shares are adjusted to fair value based on changes in the Company’s stock price up to the settlement date. In addition, the Company grants performance-based RSUs, which contain additional performance goals and market conditions that are required to be met in order for the awards to vest. Compensation expense for these performance-based RSUs is based on the grant-date fair value considers both performance and market conditions. Subsequently, the Company evaluates the probable outcome of the performance conditions quarterly and makes cumulative adjustments for current and prior periods in compensation expense in the period of change. Market conditions subsequent to the grant date have no impact on the amount of compensation expense the Company will recognize over the life of the award. Compensation cost is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award. Excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statement of Income. As stock-based compensation expense is estimated based on awards ultimately expected to vest, it is reduced by the expense related to awards expected to be forfeited. Forfeitures are estimated at the time of grant and are updated quarterly. If the estimated forfeitures are revised, a cumulative effect of changes in estimated forfeitures for the current and prior periods is recognized in compensation expense in the period of change. Refer to Note 13 — Stock Compensation Plans on the Consolidated Financial Statements in this Form 10-K for additional information.

Revenue from Contracts with Customers — The Company recognizes two primary types of revenue on its Consolidated Statement of Income: Net interest income and Noninterest income. The Company’s revenue from contracts with customers consists of service charges and fees related to deposit accounts, card income and wealth management fees. These revenue streams as described below comprised 40%, 39% and 35% of total noninterest income for the years ended December 31, 2023, 2022 and 2021, respectively.

•Deposit Service Charges and Related Fee Income — The Company offers a range of deposit products to individuals and businesses, which includes savings, money market, checking and time deposit accounts. The deposit account services include ongoing account maintenance, as well as certain optional services such as various in-branch services, automated teller machine/debit card usage, wire transfer services or check orders. In addition, treasury management and business account analysis services are offered to commercial deposit customers. The monthly account fees may vary with the amount of average monthly deposit balances maintained, or the Company may charge a fixed monthly account maintenance fee if certain average balances are not maintained. In addition, each time a deposit customer selects an optional service, the Company may earn transaction fees, generally recognized by the Company at the point when the transaction occurs. For business analysis accounts, commercial deposit customers receive an earnings credit based on their account balance, which can be used to offset the cost of banking and treasury management services. Business analysis accounts that are assessed fees in excess of earnings credits received are typically charged at the end of each month, after all transactions are known and the credits are calculated. Deposit service charge and related fee income are recognized in all operating segments.

•Card Income — Card income consists of merchant referral fees and interchange income. For merchant referral fees, the Company provides marketing and referral services to acquiring banks for merchant card processing services and earns variable referral fees based on transaction activities. The Company satisfies its performance obligation over time as the Company identifies, solicits, and refers business customers who are provided such services. The Company receives monthly fees net of consideration it pays to the acquiring bank performing the merchant card processing services. The Company recognizes revenue on a monthly basis when the uncertainty associated with the variable referral fees is resolved after the Company receives monthly statements from the acquiring bank. For interchange income, the Company, as a card issuer, has a stand ready performance obligation to authorize, clear, and settle card transactions. The Company earns or pays interchange fees, which are percentage-based on each transaction, and based on rates published by the corresponding payment network for transactions processed using their network. The Company measures its progress toward the satisfaction of its performance obligation over time as services are rendered, and the Company provides continuous access to this service and settles transactions as its customer or the payment network requires. Interchange income is presented net of direct costs paid to the customer and entities in their distribution chain, which are transaction-based expenses such as rewards program expenses and certain network costs. Revenue is recognized when the net profit is determined by the payment networks at the end of each day. Card income is recognized in consumer and business banking, and commercial banking segments.

•Wealth Management Fees — The Company provides investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies and risk management strategies. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter-end based on actual transaction details received from the broker-dealer with whom the Company engages. Wealth management fees are recognized in both consumer and business banking, and commercial banking segments.

Income Taxes — The Company files consolidated federal income tax returns, foreign tax returns, and various combined and separate company state tax returns. The calculation of the Company’s income tax provision and related tax accruals requires the use of estimates and judgments. Income tax expense consists of two components: current and deferred. Current tax expense represents taxes to be paid or refunded for the current period and includes income tax expense related to our uncertain tax positions. Income tax liabilities (receivables) represent the estimated amounts due to (due from) the various taxing jurisdictions where the Company has established a tax presence and are reported in Accrued expenses and other liabilities or Other assets on the Consolidated Balance Sheets. Deferred tax expense results from changes in deferred tax assets and liabilities between period, and is determined using the balance sheet method. Under the balance sheet method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards and tax credit carryforwards. Management regularly reviews the Company’s tax positions and deferred tax balances. In concluding whether a valuation allowance is required, the Company considers all available evidence, both positive and negative, based on the more-likely-than-not criteria that such assets will be realized. Factors considered in this analysis include the Company’s ability to generate future taxable income, implement tax-planning strategies (as defined in ASC 740, Income Taxes) and utilize taxable income from prior carryback years (if such carryback is permitted under the applicable tax law), as well as future reversals of existing taxable temporary differences. To the extent a deferred tax asset is no longer expected more-likely-than-not to be realized, a valuation allowance is established. Deferred tax assets net of deferred tax liabilities are included in Other assets on the Consolidated Balance Sheet.

The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken, or expected to be taken, in an income tax return. Uncertain tax positions that meet the more-likely-than-not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. Tax benefits not meeting our realization criteria represent unrecognized tax benefits. The Company establishes a liability for potential taxes, interest and penalties related to uncertain tax positions based on facts and circumstances, including the interpretation of existing law, new judicial or regulatory guidance, and the status of tax audits.

Earnings Per Share — Basic EPS is computed by dividing net income by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by taking net income, adjusted to remove any fair value changes related to liability-classified contingent equity contracts, divided by the weighted-average number of common shares outstanding during each period, plus any incremental dilutive common share equivalents calculated for outstanding time- and performance-based RSUs and contingently issuable shares using the treasury stock method.

Foreign Currency Translation — The Company’s foreign subsidiary in China, East West Bank (China) Limited’s functional currency is in Chinese Renminbi (“RMB”). As a result, assets and liabilities of East West Bank (China) Limited are translated, for the consolidation purpose, from its functional currency into the reporting currency U.S. dollar (“USD”) using period-end spot foreign exchange rates. Revenues and expenses of East West Bank (China) Limited are translated, for the purpose of consolidation, from its functional currency into USD at the transaction date foreign exchange rates. The effects of those translation adjustments are reported in the Foreign currency translation adjustments account within Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, net of any related hedged effects. For transactions that are denominated in a currency other than the functional currency, including transactions denominated in the local currencies of foreign operations that use the USD as their functional currency, the effects of changes in exchange rates are reported in Foreign exchange income on the Consolidated Statement of Income.

Accounting Pronouncements Adopted in 2023

Standard

Required Date of Adoption

Description

Effect on Financial Statements

ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures

Effective for fiscal years beginning after December 15, 2022.

ASU 2022-02 eliminates the

• accounting guidance for TDR, and requires the Company to apply the loan refinancing and restructuring guidance to determine whether a modification made to a loan results in a new loan or a continuation of an existing loan; and

• requirement to use a discounted cash flow method to measure receivables.

The guidance also requires

• enhanced disclosures for certain loan refinancing and restructurings by creditors when the borrower is experiencing financial difficulty; and

• vintage disclosures of current period gross charge-offs (on a current year-to-date basis) by year of loan origination for financing receivables and net investments in leases within the scope of ASC 326-20: Financial Instruments — Credit Losses — Measured at Amortized Cost.

The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis, except for the guidance related to the elimination of TDR recognition and measurement, which was adopted on a modified retrospective approach.

This adoption increased the allowance for loan losses on TDRs as of December 31, 2022 by $6 million and decreased opening retained earnings on January 1, 2023 by $4 million after-tax.

The following standards were adopted on January 1, 2023, but they did not have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

•ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging — Portfolio Layer Method

•ASU 2022-04, Liabilities — Supplier Finance Program (Subtopic 405-50): Disclosures of Supplier Finance Program Obligations

Accounting Pronouncements Adopted in 2024


Standard	Required Date of Adoption	Description	Effect on Financial Statements



ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	January 1, 2024	ASU 2023-02 expands the scope of the proportional amortization method to equity tax credit investment programs if certain conditions are met. Previously, the proportional amortization method could only be used for investments in low-income housing tax credit structures. Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the proportional amortization method to all equity investments meeting the criteria in ASC 323-740-25-1. The amendments in this guidance must be applied on a modified retrospective or a retrospective basis.	The Company adopted ASU 2023-02 on January 1, 2024, for all tax credit investments under a modified retrospective basis. The impact of the adoption decreased opening retained earnings on January 1, 2024 by $10 million.

The following standards were adopted on January 1, 2024, but they did not have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2023-01, Leases (Topic 842): Common Control Arrangements

•ASU 2022-03, Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

Recent Accounting Pronouncements Yet to be Adopted


Standard	Required Date of Adoption	Description	Effect on Financial Statements


ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	December 31, 2024. Early adoption is permitted	ASU 2023-07 expands the disclosure requirements for reportable segments of public entities by adding the following disclosure requirements: • Requires, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. • Requires , on an annual and interim basis, amount and composition of other segment items. This amount reconciles segment revenues, less the significant segment expenses, to the reported measure of segment profit or loss. • Expands the current interim disclosure requirements to require all existing annual disclosures about a reportable segment’s profit or loss and assets also be made on an interim basis. • Clarifies that if a CODM uses more than one measure of segment profit or loss, then the entity may disclose one or more measures, but at least one measure should be that which is most consistent with GAAP measurement principles. • Requires annual disclosure of the title and position of the CODM as well as explanation of how the CODM uses the reported measures in assessing segment performance and allocating resources.	The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.
ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	December 31, 2025 Early adoption is permitted.	ASU 2023-09 amends the disclosure requirements for income taxes, including the requirement for further disaggregation of the income tax rate reconciliation and income taxes paid disclosures. The amendments in this guidance must be applied prospectively, with the option to apply retrospectively.	The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.

The following standard will be adopted on January 1, 2025 and is not expected to have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

Fair Value Measurement and Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement and Fair Value of Financial Instruments

Under applicable accounting standards, the Company measures a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly recorded at fair value on a recurring basis. From time to time, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments only as required through the application of an accounting method such as lower of cost or fair value or write-down of individual assets. The Company categorizes its assets and liabilities into three levels based on the established fair value hierarchy and conducts a review of fair value hierarchy classifications on a quarterly basis. For more information regarding the fair value hierarchy and how the Company measures fair value, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Fair Value to the Consolidated Financial Statements in this Form 10-K.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments within the fair value hierarchy.

Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by independent external pricing service providers who have experience in valuing these securities or by taking the average quoted market prices obtained from independent external brokers. The valuations provided by the third-party pricing service providers are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, prepayment expectations and reference data obtained from market research publications. Inputs used by the third-party pricing service providers in valuing collateralized mortgage obligations and other securitization structures also include newly issued data, monthly payment information, whole loan collateral performance, tranche evaluation and “To Be Announced” prices. In valuing securities issued by state and political subdivisions, inputs used by third-party pricing service providers also include material event notices. The valuations provided by the brokers incorporate information from their trading desks, research and other market data.

On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and the financial instruments are properly classified in the fair value hierarchy. To perform this validation, the Company evaluates the fair values of securities by comparing the fair values provided by the third-party pricing service providers to prices from other available independent sources for the same securities. When significant variances in prices are identified, the Company further compares inputs used by different sources to ascertain the reliability of these sources. On a quarterly basis, the Company reviews the valuation inputs and methodology furnished by third-party pricing service providers for each security category. On an annual basis, the Company assesses the reasonableness of broker pricing by reviewing the related pricing methodologies. This review includes corroborating pricing with market data, performing pricing input reviews under current market-related conditions, and investigating security pricing by instrument as needed.

When a quoted price in an active market exists for the identical security, this price is used to determine the fair value and the AFS debt security is classified as Level 1. Level 1 AFS debt securities consist of U.S. Treasury securities. When pricing is unavailable from third-party pricing service providers for certain securities, the Company requests market quotes from various independent external brokers and utilizes the average quoted market prices. In addition, the Company obtains market quotes from other official published sources. As these valuations are based on observable inputs in the current marketplace, they are classified as Level 2.

Equity Securities — Equity securities consisted of mutual funds as of both December 31, 2023 and 2022. The Company invested in these mutual funds for Community Reinvestment Act (“CRA”) purposes. The Company uses net asset value (“NAV”) information to determine the fair value of these equity securities. When NAV is available periodically and the equity securities can be put back to the transfer agents at the publicly available NAV, the fair value of the equity securities is classified as Level 1. When NAV is available periodically, but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is classified as Level 2.

Interest Rate Contracts — Interest rate contracts consist of interest rate swaps and options. The fair value of the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The fair value of the interest rate options, which consist of floors and caps, is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below (rise above) the strike rate of the floors (caps). In addition, to comply with the provisions of ASC 820, Fair Value Measurement, the Company incorporates credit valuation adjustments to appropriately reflect both its own and the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. The credit valuation adjustments associated with the Company’s derivatives utilize model-derived credit spreads, which are Level 3 inputs. Considering the observable nature of all other significant inputs utilized, the Company classifies these derivative instruments as Level 2.

Foreign Exchange Contracts — The fair value of foreign exchange contracts is determined at each reporting period based on changes in the foreign exchange rates. These are over-the-counter contracts where quoted market prices are not readily available. Valuation is measured using conventional valuation methodologies with observable market data. Due to the short-term nature of the majority of these contracts, the counterparties’ credit risks are considered nominal and result in no adjustments to the valuation of the foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign exchange contracts is classified as Level 2. As of both December 31, 2023 and 2022, the Bank held foreign currency non-deliverable forward contracts to hedge its net investment in its China subsidiary, East West Bank (China) Limited, a non-USD functional currency subsidiary. These foreign currency non-deliverable forward contracts were designated as net investment hedges. The fair value of foreign currency non-deliverable forward contracts is determined by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include the spot and forward rates of the contractual currencies. Foreign exchange forward curves are used to determine which forward rate pertains to a specific maturity. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2.

Credit Contracts — Credit contracts utilized by the Company are comprised of credit risk participation agreements (“RPAs”) entered into by the Company with institutional counterparties. The fair value of the RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Due to the observable nature of all other significant inputs used in deriving the estimated fair value, credit contracts are classified as Level 2.

Equity Contracts — Equity contracts consist of warrants to purchase common or preferred stock of public and private companies, and any liability-classified contingent issuable shares of the Company. The fair value of the warrants is based on the Black-Scholes option pricing model. For warrants from public companies, the model uses the underlying stock price, stated strike price, warrant expiration date, risk-free interest rate based on a duration-matched U.S. Treasury rate, and market-observable company-specific equity volatility as inputs to value the warrants. Due to the observable nature of the inputs used in deriving the estimated fair value, warrants from public companies are classified as Level 2. For warrants from private companies, the model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S. Treasury rate and equity volatility. The Company applies proxy volatilities based on the industry sectors of the private companies. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Since both equity volatility and liquidity discount assumptions are subject to management’s judgment, measurement uncertainty is inherent in the valuation of private company warrants. Due to the unobservable nature of the equity volatility and liquidity discount assumptions used in deriving the estimated fair value, warrants from private companies are classified as Level 3. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the equity volatility and liquidity discount assumptions is performed.

In connection with the Company’s acquisition of a 49.99% equity interest in Rayliant during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration. The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets, and they are accounted for as a derivative liability. The fair value of these liability-classified equity contracts varies based on the operating revenue and operating EBITDA of Rayliant to be achieved during the future performance period. Due to the unobservable nature of the input assumptions, these equity contracts are classified as Level 3. For additional information on the equity contracts, refer to Note 5 — Derivatives and Note 7 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities to the Consolidated Financial Statements in this Form 10-K.

Commodity Contracts — Commodity contracts consist of swaps and options referencing commodity products. The fair value of the commodity option contracts is determined using the Black-Scholes model and assumptions that include expectations of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as the market price of the commodity. Commodity swaps are structured as an exchange of fixed cash flows for floating cash flows. The fair value of the commodity swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) based on the market prices of the commodity. The fixed cash flows are predetermined based on the known volumes and fixed price as specified in the swap agreement. The floating cash flows are correlated with the change of forward commodity prices, which is derived from market corroborated futures settlement prices. As a result, the Company classifies these derivative instruments as Level 2 due to the observable nature of the significant inputs utilized.

The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and 2022:



	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total Fair Value
AFS debt securities:
U.S. Treasury securities	$	1,060,375	$	—	$	—	$	1,060,375
U.S. government agency and U.S. government sponsored enterprise debt securities	—		364,446		—		364,446
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	—		468,259		—		468,259
Residential mortgage-backed securities	—		1,727,594		—		1,727,594
Municipal securities	—		261,016		—		261,016
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	—		367,516		—		367,516
Residential mortgage-backed securities	—		553,671		—		553,671
Corporate debt securities	—		502,425		—		502,425
Foreign government bonds	—		227,874		—		227,874
Asset-backed securities	—		42,300		—		42,300
Collateralized loan obligations (“CLOs”)	—		612,861		—		612,861
Total AFS debt securities	$	1,060,375	$	5,127,962	$	—	$	6,188,337

Investments in qualified affordable housing partnerships, tax credit and other investments, net:
Equity securities	$	20,509	$	4,150	$	—	$	24,659
Total investments in qualified affordable housing partnerships, tax credit and other investments, net	$	20,509	$	4,150	$	—	$	24,659

Derivative assets:
Interest rate contracts	$	—	$	473,907	$	—	$	473,907
Foreign exchange contracts	—		57,072		—		57,072
Credit contracts	—		1		—		1
Equity contracts	—		—		336		336
Commodity contracts	—		79,604		—		79,604
Gross derivative assets	$	—	$	610,584	$	336	$	610,920
Netting adjustments (1)	$	—	$	(312,792)	$	—	$	(312,792)
Net derivative assets	$	—	$	297,792	$	336	$	298,128

Derivative liabilities:
Interest rate contracts	$	—	$	433,936	$	—	$	433,936
Foreign exchange contracts	—		42,564		—		42,564
Equity contracts (2)	—		—		15,119		15,119
Credit contracts	—		25		—		25
Commodity contracts	—		121,670		—		121,670
Gross derivative liabilities	$	—	$	598,195	$	15,119	$	613,314
Netting adjustments (1)	$	—	$	(76,170)	$	—	$	(76,170)
Net derivative liabilities	$	—	$	522,025	$	15,119	$	537,144



	Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total Fair Value
AFS debt securities:
U.S. Treasury securities	$	606,203	$	—	$	—	$	606,203
U.S. government agency and U.S. government sponsored enterprise debt securities	—		461,607		—		461,607
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	—		500,269		—		500,269
Residential mortgage-backed securities	—		1,762,195		—		1,762,195
Municipal securities	—		257,099		—		257,099
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	—		398,329		—		398,329
Residential mortgage-backed securities	—		649,224		—		649,224
Corporate debt securities	—		526,274		—		526,274
Foreign government bonds	—		227,053		—		227,053
Asset-backed securities	—		49,076		—		49,076
CLOs	—		597,664		—		597,664
Total AFS debt securities	$	606,203	$	5,428,790	$	—	$	6,034,993

Investments in qualified affordable housing partnerships, tax credit and other investments, net:
Equity securities	$	19,777	$	4,177	$	—	$	23,954
Total investments in qualified affordable housing partnerships, tax credit and other investments, net	$	19,777	$	4,177	$	—	$	23,954

Derivative assets:
Interest rate contracts	$	—	$	440,283	$	—	$	440,283
Foreign exchange contracts	—		53,109		—		53,109

Equity contracts	—		—		323		323
Commodity contracts	—		261,613		—		261,613
Gross derivative assets	$	—	$	755,005	$	323	$	755,328
Netting adjustments (1)	$	—	$	(614,783)	$	—	$	(614,783)
Net derivative assets	$	—	$	140,222	$	323	$	140,545

Derivative liabilities:
Interest rate contracts	$	—	$	584,516	$	—	$	584,516
Foreign exchange contracts	—		44,117		—		44,117
Credit contracts	—		23		—		23
Commodity contracts	—		258,608		—		258,608
Gross derivative liabilities	$	—	$	887,264	$	—	$	887,264
Netting adjustments (1)	$	—	$	(242,745)	$	—	$	(242,745)
Net derivative liabilities	$	—	$	644,519	$	—	$	644,519

(1)Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information.

(2)Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in its investment in Rayliant.

For the years ended December 31, 2023, 2022 and 2021, Level 3 fair value measurements that were measured on a recurring basis consisted of warrant equity contracts issued by private companies and liability-classified contingent issuable shares of the Company. The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021

Derivative assets:
Equity contracts
Beginning balance	$	323	$	215	$	273

Total (losses) gains included in earnings (1)	(79)		17		32



Issuances	92		91		12

Settlements	—		—		(96)
Transfers out of Level 3 (2)	—		—		(6)
Ending balance	$	336	$	323	$	215
Derivative liabilities:
Equity contracts (3)
Beginning balance	$	—	$	—	$	—

Issuances	15,119		—		—
Ending balance	$	15,119	$	—	$	—

(1)Includes both realized and unrealized (losses) gains recorded in Lending fees on the Consolidated Statement of Income. The unrealized (losses) gains were $(79) thousand, $17 thousand, and $(44) thousand for the years ended December 31, 2023, 2022 and 2021, respectively.

(2)During the year ending December 31, 2021, the Company transferred $6 thousand of equity contracts measured on a recurring basis out of Level 3 to Level 2 after the corresponding issuer of the equity warrant, which was previously a private company, completed its initial public offering and became a public company.

(3)Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in its investment in Rayliant.

The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of December 31, 2023 and 2022. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change.



($ in thousands)	Fair Value Measurements (Level 3)		Valuation Technique	Unobservable Inputs	Range of Inputs	Weighted- Average of Inputs
December 31, 2023
Derivative assets:
Equity contracts	$	336	Black-Scholes option pricing model	Equity volatility	37% — 48%	45%	(1)
				Liquidity discount	47%	47%
Derivative liabilities:
Equity contracts (2)	$	15,119	Internal model	Payout % designated based on operating revenue and operating EBITDA of investee	84%	84%
December 31, 2022
Derivative assets:
Equity contracts	$	323	Black-Scholes option pricing model	Equity volatility	42% — 60%	54%	(1)
				Liquidity discount	47%	47%

(1)Weighted-average of inputs is calculated based on the fair value of equity contracts as of December 31, 2023 and 2022.

(2)Equity contracts classified as derivative liabilities consist of performance-based RSUs granted as part of EWBC’s consideration in its investment in Rayliant.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets measured at fair value on a nonrecurring basis include certain individually evaluated loans held-for-investment, investments in qualified affordable housing partnerships, tax credit and other investments, OREO, loans held-for-sale, and other nonperforming assets. Nonrecurring fair value adjustments result from the impairment on certain individually evaluated loans held-for-investment and investments in qualified affordable housing partnerships, tax credit and other investments, from write-downs of OREO and other nonperforming assets, or from the application of lower of cost or fair value on loans held-for-sale.

Individually Evaluated Loans Held-for-Investment — Individually evaluated loans held-for-investment are classified as Level 3 assets. The following two methods are used to derive the fair value of individually evaluated loans held-for-investment:

•Discounted cash flow valuation techniques that consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate.

•When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations, or is unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches.

Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company conducts due diligence on its investments in qualified affordable housing partnerships, tax credit and other investments prior to the initial investment date and through the placed-in-service date. After these investments are either acquired or placed into service, the Company continues its periodic monitoring process to ensure book values are realizable and that there is no significant tax credit recapture risk. This monitoring process includes reviewing the investment entity’s quarterly financial statements and annual tax returns, the annual financial statements of the guarantor (if any) and a comparison of the actual performance of the investment against the financial projections prepared at the time the investment was made. The Company assesses its tax credit and other investments for possible OTTI on an annual basis or when events or circumstances suggest that the carrying amount of the investments may not be realizable. These circumstances can include, but are not limited to the following factors:

•expected future cash flows that are less than the carrying amount of the investment;

•changes in the economic, market or technological environment that could adversely affect the investee’s operations;

•the potential for tax credit recapture; and

•other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment.

All available information is considered in assessing whether a decline in value is other-than-temporary. Generally, none of the aforementioned factors are individually conclusive and the relative importance placed on individual facts may vary depending on the situation. In accordance with ASC 323-10-35-32, Investments — Equity Method and Joint Ventures, an impairment charge would only be recognized in earnings for a decline in value that is determined to be other-than-temporary.

Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment. These OREO properties are recorded at estimated fair value less the costs to sell at the time of foreclosure or at the lower of cost or estimated fair value less the costs to sell subsequent to acquisition. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. OREO properties are classified as Level 3.

Loans Held-for-Sale — Loans held-for-investment subsequently transferred to held-for-sale are recorded at the lower of cost or fair value upon transfer. Loans held-for-sale may be measured at fair value on a nonrecurring basis when fair value is less than cost. Fair value is generally determined based on available market data for similar loans and therefore, loans held-for-sale are classified as Level 2.

Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon transfer from loans to foreclosed assets. Subsequently, foreclosed assets are recorded at the lower of carrying value or fair value. Fair value is based on independent market prices, appraised values of the collateral or management’s estimated recovery of the foreclosed asset. The Company records an impairment when the foreclosed asset’s fair value declines below its carrying value. The fair value measurement of other nonperforming assets is classified within one of the three levels in a valuation hierarchy based upon the observability of inputs to the valuation as of the measurement date.

The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of December 31, 2023 and 2022:



	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Fair Value Measurements
Loans held-for-investment:




Commercial:
C&I	$	—	$	—	$	22,035	$	22,035
CRE:
CRE	—		—		22,653		22,653


Total commercial	—		—		44,688		44,688
Consumer:

Residential mortgage:
HELOCs	—		—		1,204		1,204

Total consumer	—		—		1,204		1,204
Total loans held-for-investment	$	—	$	—	$	45,892	$	45,892
Investments in qualified affordable housing partnerships, tax credit and other investments, net	$	—	$	—	$	868	$	868



	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Fair Value Measurements
Loans held-for-investment:




Commercial:
C&I	$	—	$	—	$	40,011	$	40,011
CRE:
CRE	—		—		31,380		31,380


Total commercial	—		—		71,391		71,391
Consumer:
Residential mortgage:

HELOCs	—		—		1,223		1,223

Total consumer	—		—		1,223		1,223
Total loans held-for-investment	$	—	$	—	$	72,614	$	72,614

The following table presents the increase (decrease) in the fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Loans held-for-investment:




Commercial:
C&I	$	(6,152)	$	(25,996)	$	(9,580)
CRE:
CRE	(1,183)		(7,098)		(10,231)



Total commercial	(7,335)		(33,094)		(19,811)
Consumer:
Residential mortgage:

HELOCs	(40)		166		(4)


Total consumer	$	(40)	$	166	$	(4)
Total loans held-for-investment	$	(7,375)	$	(32,928)	$	(19,815)
Investments in qualified affordable housing partnerships, tax credit and other investments, net	$	(1,140)	$	469	$	877

Other nonperforming assets	$	—	$	(6,861)	$	(4,241)

The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of December 31, 2023 and 2022:



($ in thousands)	Fair Value Measurements (Level 3)		Valuation Techniques	Unobservable Inputs	Range of Inputs	Weighted-Average of Inputs
December 31, 2023

Loans held-for-investment	$	16,328	Fair value of collateral	Discount	15% — 75%	45%	(1)
	$	3,009	Fair value of collateral	Contract value	NM	NM
	$	26,555	Fair value of property	Selling cost	8%	8%
Investments in qualified affordable housing partnerships, tax credit and other investments, net	$	868	Individual analysis of each investment	Expected future tax benefits and distributions	NM	NM


December 31, 2022
Loans held-for-investment	$	23,322	Discounted cash flows	Discount	4% — 6%	4%	(1)
	$	17,912	Fair value of collateral	Discount	15% — 75%	37%	(1)

	$	31,380	Fair value of property	Selling cost	8%	8%

NM - Not meaningful

(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of December 31, 2023 and 2022.

Disclosures about the Fair Value of Financial Instruments

The following tables present the fair value estimates for financial instruments as of December 31, 2023 and 2022, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable, restricted equity securities, at cost, and mortgage servicing rights that are included in Other assets, and accrued interest payable which is included in Accrued expenses and other liabilities. These financial instruments are measured on an amortized cost basis on the Company’s Consolidated Balance Sheet.



	December 31, 2023
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	4,614,984	$	4,614,984	$	—	$	—	$	4,614,984
Interest-bearing deposits with banks	$	10,498	$	—	$	10,498	$	—	$	10,498
Resale agreements	$	785,000	$	—	$	699,056	$	—	$	699,056
HTM debt securities	$	2,956,040	$	488,551	$	1,965,420	$	—	$	2,453,971
Restricted equity securities, at cost	$	79,811	$	—	$	79,811	$	—	$	79,811
Loans held-for-sale	$	116	$	—	$	116	$	—	$	116
Loans held-for-investment, net	$	51,542,039	$	—	$	—	$	50,256,565	$	50,256,565
Mortgage servicing rights	$	6,602	$	—	$	—	$	9,470	$	9,470
Accrued interest receivable	$	331,490	$	—	$	331,490	$	—	$	331,490
Financial liabilities:
Demand, checking, savings and money market deposits	$	38,048,974	$	—	$	38,048,974	$	—	$	38,048,974
Time deposits	$	18,043,464	$	—	$	18,004,951	$	—	$	18,004,951



Short-term borrowings	$	4,500,000	$	—	$	4,500,000	$	—	$	4,500,000
Long-term debt	$	148,249	$	—	$	150,896	$	—	$	150,896
Accrued interest payable	$	205,430	$	—	$	205,430	$	—	$	205,430



	December 31, 2022
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	3,481,784	$	3,481,784	$	—	$	—	$	3,481,784
Interest-bearing deposits with banks	$	139,021	$	—	$	139,021	$	—	$	139,021
Resale agreements	$	792,192	$	—	$	693,656	$	—	$	693,656
HTM debt securities	$	3,001,868	$	471,469	$	1,983,702	$	—	$	2,455,171
Restricted equity securities, at cost	$	78,624	$	—	$	78,624	$	—	$	78,624
Loans held-for-sale	$	25,644	$	—	$	25,644	$	—	$	25,644
Loans held-for-investment, net	$	47,606,785	$	—	$	—	$	46,670,690	$	46,670,690
Mortgage servicing rights	$	6,235	$	—	$	—	$	10,917	$	10,917

Accrued interest receivable	$	263,430	$	—	$	263,430	$	—	$	263,430
Financial liabilities:
Demand, checking, savings and money market deposits	$	42,637,316	$	—	$	42,637,316	$	—	$	42,637,316
Time deposits	$	13,330,533	$	—	$	13,228,777	$	—	$	13,228,777


Repurchase agreements	$	300,000	$	—	$	304,097	$	—	$	304,097
Long-term debt	$	147,950	$	—	$	143,483	$	—	$	143,483
Accrued interest payable	$	37,198	$	—	$	37,198	$	—	$	37,198

Assets Purchased under Resale Agreements and Sold under Repurchase Agreements

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Assets Purchased under Resale Agreements and Sold under Repurchase Agreements

12 Months Ended

Dec. 31, 2023

RESALE AND REPURCHASE AGREEMENTS

Assets Purchased under Resale Agreements

The Company’s resale agreements exposes it to credit risk for both the counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with the counterparties. The relevant agreements allow for an efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is also the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both December 31, 2023 and 2022.

Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $785 million and $760 million as of December 31, 2023 and 2022, respectively. The weighted-average yields were 2.87%, 2.12% and 1.53% for the years ended December 31, 2023, 2022 and 2021, respectively.

Loans Purchased under Resale Agreements — Loans purchased under resale agreements were $32 million as of December 31, 2022. The Company had no loans purchased under resale agreements as of December 31, 2023 due to the maturity of the underlying loans. The weighted-average yields were 2.16% and 1.53% for the years ended December 31, 2022 and 2021, respectively.

Assets Sold under Repurchase Agreements — Gross repurchase agreements were $300 million as of December 31, 2022. The Company extinguished $300 million of repurchase agreements during the first quarter of 2023 and recorded $4 million of extinguishment charges during 2023. In comparison, no extinguishment charges were recorded for the years ended December 31, 2022 and 2021. The weighted-average interest rates were 3.07% and 2.61% for the years ended December 31, 2022 and 2021, respectively These weighted-average interest rates also reflect the impact of short-term repurchase agreements entered and repaid during the years presented.

Balance Sheet Offsetting

The Company’s resale and repurchase agreements are transacted under legally enforceable master netting agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by the third-party trustees.

The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of December 31, 2023 and 2022:



($ in thousands)	December 31, 2023
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts of Assets Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
Assets							Collateral Received			Net Amount
Resale agreements	$	785,000	$	—	$	785,000	$	(715,358)	(1)	$	69,642

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts of Liabilities Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
Liabilities							Collateral Pledged			Net Amount
Repurchase agreements	$	—	$	—	$	—	$	—		$	—



($ in thousands)	December 31, 2022
	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts of Assets Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
Assets							Collateral Received			Net Amount
Resale agreements	$	792,192	$	—	$	792,192	$	(701,790)	(1)	$	90,402

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts of Liabilities Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
Liabilities							Collateral Pledged			Net Amount
Repurchase agreements	$	300,000	$	—	$	300,000	$	(300,000)	(2)	$	—

(1)Represents the fair value of assets the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

(2)Represents the fair value of assets the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability due to each counterparty. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above.

In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives. Refer to Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K for additional information.

Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Securities

The following tables present the amortized cost, gross unrealized gains and losses, and fair value by major categories of AFS and HTM debt securities as of December 31, 2023 and 2022:



	December 31, 2023
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
AFS debt securities:
U.S. Treasury securities	$	1,112,587	$	101	$	(52,313)	$	1,060,375
U.S. government agency and U.S. government-sponsored enterprise debt securities	412,086		—		(47,640)		364,446
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	531,377		158		(63,276)		468,259
Residential mortgage-backed securities	1,956,927		380		(229,713)		1,727,594
Municipal securities:	297,283		75		(36,342)		261,016
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	409,578		—		(42,062)		367,516
Residential mortgage-backed securities	643,335		—		(89,664)		553,671
Corporate debt securities	653,501		—		(151,076)		502,425
Foreign government bonds	239,333		69		(11,528)		227,874
Asset-backed securities	43,234		—		(934)		42,300
CLOs	617,250		—		(4,389)		612,861
Total AFS debt securities	6,916,491		783		(728,937)		6,188,337
HTM debt securities
U.S. Treasury securities	529,548		—		(40,997)		488,551
U.S. government agency and U.S. government-sponsored enterprise debt securities	1,001,836		—		(186,904)		814,932
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	493,348		—		(88,968)		404,380
Residential mortgage-backed securities	742,436		—		(142,119)		600,317
Municipal securities	188,872		—		(43,081)		145,791
Total HTM debt securities	2,956,040		—		(502,069)		2,453,971
Total debt securities	$	9,872,531	$	783	$	(1,231,006)	$	8,642,308



	December 31, 2022
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
AFS debt securities:
U.S. Treasury securities	$	676,306	$	—	$	(70,103)	$	606,203
U.S. government agency and U.S. government-sponsored enterprise debt securities	517,806		67		(56,266)		461,607
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	577,392		—		(77,123)		500,269
Residential mortgage-backed securities	2,011,054		41		(248,900)		1,762,195
Municipal securities	303,884		3		(46,788)		257,099
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	447,512		213		(49,396)		398,329
Residential mortgage-backed securities	762,202		—		(112,978)		649,224
Corporate debt securities	673,502		—		(147,228)		526,274
Foreign government bonds	241,165		174		(14,286)		227,053
Asset-backed securities	51,152		—		(2,076)		49,076
CLOs	617,250		—		(19,586)		597,664
Total AFS debt securities	6,879,225		498		(844,730)		6,034,993
HTM debt securities:
U.S. Treasury securities	524,081		—		(52,612)		471,469
U.S. government agency and U.S. government-sponsored enterprise debt securities	998,972		—		(209,560)		789,412
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	506,965		—		(98,566)		408,399
Residential mortgage-backed securities	782,141		—		(148,230)		633,911
Municipal securities	189,709		—		(37,729)		151,980
Total HTM debt securities	3,001,868		—		(546,697)		2,455,171
Total debt securities	$	9,881,093	$	498	$	(1,391,427)	$	8,490,164

As of December 31, 2023 and 2022, the amortized cost of debt securities excluded accrued interest receivables of $44 million and $42 million, respectively, which are included in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy related to debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in this Form 10-K.

Unrealized Losses of Available-for-Sale Debt Securities

The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position, as of December 31, 2023 and 2022:



	December 31, 2023
	Less Than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
AFS debt securities:
U.S. Treasury securities	$	—	$	—	$	623,978	$	(52,313)	$	623,978	$	(52,313)
U.S. government agency and U.S. government-sponsored enterprise debt securities	—		—		364,446		(47,640)		364,446		(47,640)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	—		—		463,572		(63,276)		463,572		(63,276)
Residential mortgage-backed securities	9,402		(558)		1,661,112		(229,155)		1,670,514		(229,713)
Municipal securities	2,825		(15)		254,773		(36,327)		257,598		(36,342)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	2,742		(4)		364,774		(42,058)		367,516		(42,062)
Residential mortgage-backed securities	—		—		553,671		(89,664)		553,671		(89,664)
Corporate debt securities	—		—		502,425		(151,076)		502,425		(151,076)
Foreign government bonds	110,955		(144)		88,616		(11,384)		199,571		(11,528)
Asset-backed securities	—		—		42,300		(934)		42,300		(934)
CLOs	—		—		612,861		(4,389)		612,861		(4,389)
Total AFS debt securities	$	125,924	$	(721)	$	5,532,528	$	(728,216)	$	5,658,452	$	(728,937)



	December 31, 2022
	Less Than 12 Months				12 Months or More				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
AFS debt securities:
U.S. Treasury securities	$	131,843	$	(8,761)	$	474,360	$	(61,342)	$	606,203	$	(70,103)
U.S. government agency and U.S. government-sponsored enterprise debt securities	97,403		(6,902)		214,136		(49,364)		311,539		(56,266)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	252,144		(30,029)		248,125		(47,094)		500,269		(77,123)
Residential mortgage-backed securities	307,536		(20,346)		1,448,658		(228,554)		1,756,194		(248,900)
Municipal securities	95,655		(10,194)		159,439		(36,594)		255,094		(46,788)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities	106,184		(3,309)		282,301		(46,087)		388,485		(49,396)
Residential mortgage-backed securities	22,715		(1,546)		626,509		(111,432)		649,224		(112,978)
Corporate debt securities	173,595		(17,907)		352,679		(129,321)		526,274		(147,228)
Foreign government bonds	107,576		(429)		36,143		(13,857)		143,719		(14,286)
Asset-backed securities	12,450		(524)		36,626		(1,552)		49,076		(2,076)
CLOs	144,365		(4,735)		453,299		(14,851)		597,664		(19,586)
Total AFS debt securities	$	1,451,466	$	(104,682)	$	4,332,275	$	(740,048)	$	5,783,741	$	(844,730)

As of December 31, 2023, the Company had 547 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 255 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities, and 99 non-agency mortgage-backed securities. In comparison, as of December 31, 2022, the Company had 559 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 263 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 100 non-agency mortgage-backed securities, and 68 corporate debt securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

The Company evaluates each AFS debt security where the fair value declines below amortized cost. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in this Form 10-K.

The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and the widening of liquidity and/or credit spreads. U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise debt and mortgage-backed securities are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The remaining securities that were in an unrealized loss position as of December 31, 2023 were mainly comprised of the following:

•Corporate debt securities — The market value decline as of December 31, 2023 was primarily due to interest rate movement and spread widening. A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S. banks. Despite the reduction of the market value of these securities after the banking sector disruption in 2023, these securities are nearly all rated investment grade by NRSROs or issued by well-capitalized financial institutions with strong profitability. The contractual payments from these corporate debt securities have been and are expected to be received on time. The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities.

•Non-agency mortgage-backed securities — The market value decline as of December 31, 2023, was primarily due to interest rate movement and spread widening. Since these securities are rated investment grade by NRSROs, or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time, the Company believes the risk of credit losses on these securities is low.

As of both December 31, 2023 and 2022, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would not have to sell these securities before the recovery of their amortized cost. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, there was no allowance for credit losses provided against these securities as of both December 31, 2023 and 2022. In addition, there was no provision for credit losses recognized for the years ended December 31, 2023, 2022, and 2021.

Allowance for Credit Losses on Held-to-Maturity Debt Securities

The Company separately evaluates its HTM debt securities for any credit losses using an expected loss model, similar to the methodology used for loans. For additional information on the Company’s credit loss methodology, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in this Form 10-K.

The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of December 31, 2023, all HTM securities were rated investment grade by NRSROs and issued, guaranteed, or supported by U.S. government entities and agencies. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of December 31, 2023 and 2022. Overall, the Company believes that the credit support levels of the debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received.

Realized Gains and Losses

The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax (benefit) expense included in earnings for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021

Gross realized gains from sales (1)	$	3,138	$	1,306	$	1,568

Impairment write-off (1)	$	(10,000)	$	—	$	—
Related tax (benefit) expense	$	(2,029)	$	386	$	464

(1)During 2023, the Company recognized $7 million in net losses on AFS securities as a component of noninterest income in the Company’s Consolidated Statement of Income, consisting of a $10 million impairment write-off on a subordinated debt security, partially offset by a $3 million gain on the sale of the same security.

Interest Income

The following table presents the composition of interest income on debt securities for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021

Taxable interest	$	255,475	$	179,720	$	131,985
Nontaxable interest	20,715		19,186		11,998
Total interest income on debt securities	$	276,190	$	198,906	$	143,983

Contractual Maturities of Available-for-Sale and Held-to-Maturity Debt Securities

The following tables present the contractual maturities, amortized cost, fair value and weighted average yields of AFS and HTM debt securities as of December 31, 2023. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.



($ in thousands)	Within One Year			After One Year through Five Years			After Five Years through Ten Years			After Ten Years			Total
AFS debt securities:
U.S. Treasury securities
Amortized cost	$	436,296		$	676,291		$	—		$	—		$	1,112,587
Fair value	436,397			623,978			—			—			1,060,375
Weighted-average yield (1)	5.40		%	1.20		%	—		%	—		%	2.85		%
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost	50,000			96,470			128,169			137,447			412,086
Fair value	49,882			93,182			109,134			112,248			364,446
Weighted-average yield (1)	5.00		%	3.08		%	1.38		%	2.33		%	2.53		%
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost	—			41,533			142,008			2,304,763			2,488,304
Fair value	—			39,930			130,528			2,025,395			2,195,853
Weighted-average yield (1) (2)	—		%	3.13		%	2.70		%	3.68		%	3.62		%
Municipal securities
Amortized cost	2,240			35,100			9,624			250,319			297,283
Fair value	2,214			32,877			8,752			217,173			261,016
Weighted-average yield (1) (2)	3.39		%	2.24		%	3.22		%	2.23		%	2.27		%
Non-agency mortgage-backed securities
Amortized cost	96,990			77,046			—			878,877			1,052,913
Fair value	95,856			74,884			—			750,447			921,187
Weighted-average yield (1)	6.74		%	4.44		%	—		%	2.59		%	3.11		%
Corporate debt securities
Amortized cost	—			—			349,501			304,000			653,501
Fair value	—			—			290,877			211,548			502,425
Weighted average yield (1)	—		%	—		%	3.48		%	1.97		%	2.78		%
Foreign government bonds
Amortized cost	33,262			106,071			50,000			50,000			239,333
Fair value	33,231			106,026			49,593			39,024			227,874
Weighted-average yield (1)	3.02		%	2.28		%	5.73		%	1.50		%	2.94		%
Asset-backed securities
Amortized cost	—			—			—			43,234			43,234
Fair value	—			—			—			42,300			42,300
Weighted-average yield (1)	—		%	—		%	—		%	6.07		%	6.07		%
CLOs
Amortized cost	—			—			319,000			298,250			617,250
Fair value	—			—			315,410			297,451			612,861
Weighted average yield (1)	—		%	—		%	6.80		%	6.82		%	6.81		%
Total AFS debt securities
Amortized cost	$	618,788		$	1,032,511		$	998,302		$	4,266,890		$	6,916,491
Fair value	$	617,580		$	970,877		$	904,294		$	3,695,586		$	6,188,337
Weighted-average yield (1)	5.44		%	1.84		%	4.27		%	3.42		%	3.49		%



($ in thousands)	Within One Year			After One Year through Five Years			After Five Years through Ten Years			After Ten Years			Total
HTM debt securities:
U.S. Treasury securities
Amortized cost	$	—		$	529,548		$	—		$	—		$	529,548
Fair value	—			488,551			—			—			488,551
Weighted-average yield (1)	—		%	1.05		%	—		%	—		%	1.05		%
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost	—			—			343,319			658,517			1,001,836
Fair value	—			—			296,124			518,808			814,932
Weighted-average yield (1)	—		%	—		%	1.90		%	1.89		%	1.90		%
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost	—			—			99,473			1,136,311			1,235,784
Fair value	—			—			84,323			920,374			1,004,697
Weighted-average yield (1) (2)	—		%	—		%	1.61		%	1.70		%	1.69		%
Municipal securities
Amortized cost	—			—			—			188,872			188,872
Fair value	—			—			—			145,791			145,791
Weighted-average yield (1) (2)	—		%	—		%	—		%	1.99		%	1.99		%
Total HTM debt securities
Amortized cost	$	—		$	529,548		$	442,792		$	1,983,700		$	2,956,040
Fair value	$	—		$	488,551		$	380,447		$	1,584,973		$	2,453,971
Weighted-average yield (1)	—		%	1.05		%	1.83		%	1.79		%	1.66		%

(1)Weighted-average yields are computed based on amortized cost balances.

(2)Yields on tax-exempt securities are not presented on a tax-equivalent basis.

As of December 31, 2023 and 2022, AFS and HTM debt securities with carrying values of $7.0 billion and $794 million, respectively, were pledged to secure borrowings, public deposits, repurchase agreements and for other purposes required or permitted by law.

Restricted Equity Securities

The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of December 31, 2023 and 2022:



	December 31,
($ in thousands)	2023		2022
FRBSF stock	$	62,561	$	61,374
FHLB stock	17,250		17,250
Total restricted equity securities	$	79,811	$	78,624

Derivatives

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

The Company uses derivative instruments to manage exposure to market risk, primarily interest rate and foreign currency risks, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility to mitigate the effect of interest rate changes on earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, as well as the Bank’s investment in East West Bank (China) Limited. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements in this Form 10-K.

The following table presents the notional amounts and fair values of the Company’s derivatives as of December 31, 2023 and 2022. Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in both the derivative asset and liability fair values of $43 million as of December 31, 2023. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $167 million and $81 million, respectively, as of December 31, 2022. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.



	December 31, 2023								December 31, 2022
			Fair Value								Fair Value
($ in thousands)	Notional Amount		Assets			Liabilities			Notional Amount		Assets			Liabilities
Derivatives designated as hedging instruments:


Cash flow hedges:
Interest rate contracts	$	5,250,000	$	50,421		$	13,124		$	3,450,000	$	13,455		$	19,687
Net investment hedges:
Foreign exchange contracts	81,480		3,394			—			84,832		5,590			—
Total derivatives designated as hedging instruments	$	5,331,480	$	53,815		$	13,124		$	3,534,832	$	19,045		$	19,687

Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,387,909	$	423,486		$	420,812		$	16,932,414	$	426,828		$	564,829
Commodity contracts (1)	—		79,604			121,670			—		261,613			258,608
Foreign exchange contracts	5,827,149		53,678			42,564			2,982,891		47,519			44,117
Credit contracts (2)	118,391		1			25			140,950		—			23
Equity contracts	—		336		(3)	15,119		(4)	—		323		(3)	—
Total derivatives not designated as hedging instruments	$	23,333,449	$	557,105		$	600,190		$	20,056,255	$	736,283		$	867,577
Gross derivative assets/liabilities			$	610,920		$	613,314				$	755,328		$	887,264
Less: Master netting agreements			(75,534)			(75,534)					(242,745)			(242,745)
Less: Cash collateral received/paid			(237,258)			(636)					(372,038)			—
Net derivative assets/liabilities			$	298,128		$	537,144				$	140,545		$	644,519

(1)The notional amount of the Company’s commodity contracts totaled 18,631 thousand barrels of crude oil and 328,844 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2023. In comparison, the notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand MMBTUs of natural gas as of December 31, 2022.

(2)Notional amount for credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs.

(3)The Company held equity contracts in 11 private companies and one public company as of December 31, 2023, and 13 private companies and one public company as of December 31, 2022.

(4)Equity contracts classified as derivative liabilities consist of 349,138 performance-based RSUs granted as part of EWBC’s consideration in its investment in Rayliant.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges — The Company uses interest rate swaps to hedge the variability in interest amount received on certain floating-rate commercial loans, or paid on certain floating-rate borrowings due to changes in contractually specified interest rates. As of December 31, 2023, interest rate contracts with total notional amount of $5.3 billion were designated as cash flow hedges to convert certain variable-rate loans from floating-rate payments to fixed-rate payments. Gains and losses on the hedging derivative instruments are recognized in AOCI and reclassified to earnings in the same period the hedged cash flows impact earnings and within the same income statement line item as the hedged cash flows. Considering the interest rates, yield curve and notional amounts as of December 31, 2023, the Company expects to reclassify an estimated $47 million of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months.

The following table presents the pre-tax changes in AOCI from cash flow hedges for the years ended December 31, 2023, 2022 and 2021. The after-tax impact of cash flow hedges on AOCI is shown in Note 15 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-K.



	Year Ended December 31,
($ in thousands)	2023			2022		2021
(Losses) gains recognized in AOCI:
Interest rate contracts	$	(5,767)		$	(74,069)	$	1,210
Gains (losses) reclassified from AOCI into earnings:
Interest expense (for cash flow hedges on borrowings)	$	696		$	3,200	$	(868)
Interest and dividend income (for cash flow hedges on loans)	(82,153)			(7,204)		—
Noninterest income	1,614		(1)	—		—
Total	$	(79,843)		$	(4,004)	$	(868)

(1)Represents the amounts in AOCI reclassified into earnings as a result that the forecasted cash flows were no longer probable to occur.

Net Investment Hedges — The Company enters into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges were used to hedge against the risk of adverse changes in the foreign currency exchange rate of the RMB. The following table presents the pre-tax gains (losses) recognized in AOCI on net investment hedges for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Gains (losses) recognized in AOCI	$	2,571	$	4,509	$	(4,558)

Derivatives Not Designated as Hedging Instruments

Customer-Related Positions and Economic Hedge Derivatives — The Company enters into interest rate, commodity, and foreign exchange derivatives at the request of its customers and generally enters into offsetting derivative contracts with third-party financial institutions to mitigate the inherent market risk. The Company also utilizes foreign exchange contracts to mitigate the effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers. A majority of the foreign exchange contracts had original maturities of one year or less as of both December 31, 2023 and 2022.

The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of December 31, 2023 and 2022:



	December 31, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,835,822	$	25,649	$	377,388	$	6,656,491	$	1,438	$	521,719
Written options	1,522,531		—		12,756		1,548,158		—		30,904
Collars and corridors	322,732		440		4,481		215,773		—		8,924
Subtotal	8,681,085		26,089		394,625		8,420,422		1,438		561,547
Foreign exchange contracts:
Forwards and spot	956,618		9,466		6,756		993,588		17,009		18,090
Swaps	1,588,491		5,801		18,118		623,143		6,629		12,178
Other	136,000		1,839		—		121,631		2,070		245
Subtotal	2,681,109		17,106		24,874		1,738,362		25,708		30,513
Total	$	11,362,194	$	43,195	$	419,499	$	10,158,784	$	27,146	$	592,060
Other economic hedges:
Interest rate contracts:
Swaps	$	6,861,561	$	380,123	$	25,731	$	6,683,828	$	384,201	$	2,047
Purchased options	1,522,531		12,783		—		1,580,275		32,233		—
Written options	—		—		—		32,117		—		1,235
Collars and corridors	322,732		4,491		456		215,772		8,956		—
Subtotal	8,706,824		397,397		26,187		8,511,992		425,390		3,282
Foreign exchange contracts:
Forwards and spot	148,003		292		94		77,998		3,050		87
Swaps	2,862,037		36,280		15,757		1,044,900		18,516		11,447
Other	136,000		—		1,839		121,631		245		2,070
Subtotal	3,146,040		36,572		17,690		1,244,529		21,811		13,604
Total	$	11,852,864	$	433,969	$	43,877	$	9,756,521	$	447,201	$	16,886

The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and other economic hedges as of December 31, 2023 and 2022:



	December 31, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	3,277	Barrels	$	3,735	$	15,445	2,465	Barrels	$	39,955	$	6,178
Collars	5,966	Barrels	1,820		5,103		3,011	Barrels	16,038		2,630
Written options	—	Barrels	—		—		—	Barrels	558		—
Subtotal	9,243	Barrels	5,555		20,548		5,476	Barrels	56,551		8,808
Natural gas:
Swaps	118,325	MMBTUs	438		73,793		92,590	MMBTUs	112,314		73,208
Collars	45,854	MMBTUs	21		20,400		32,072	MMBTUs	2,217		18,317
Written options	1,874	MMBTUs	—		233		—	MMBTUs	—		—
Subtotal	166,053	MMBTUs	459		94,426		124,662	MMBTUs	114,531		91,525
Total			$	6,014	$	114,974			$	171,082	$	100,333
Other economic hedges:
Commodity contracts:
Crude oil:
Swaps	3,422	Barrels	$	9,166	$	4,924	2,587	Barrels	$	6,935	$	36,060
Collars	5,966	Barrels	1,685		1,467		3,942	Barrels	1,378		12,856
Purchased options	—	Barrels	—		—		—	Barrels	—		516
Subtotal	9,388	Barrels	10,851		6,391		6,529	Barrels	8,313		49,432
Natural gas:
Swaps	116,463	MMBTUs	49,941		305		91,900	MMBTUs	69,767		106,883
Collars	44,454	MMBTUs	12,565		—		31,142	MMBTUs	12,451		1,960
Purchased options	1,874	MMBTUs	233		—		—	MMBTUs	—		—
Subtotal	162,791	MMBTUs	62,739		305		123,042	MMBTUs	82,218		108,843
Total			$	73,590	$	6,696			$	90,531	$	158,275

Credit Contracts — The Company periodically enters into credit RPAs with institutional counterparties to manage the credit exposure of the interest rate contracts associated with syndication loans. Under the RPAs, a portion of the credit exposure is transferred from one party (the purchaser of credit protection) to another party (the seller of credit protection). The seller of credit protection is required to make payments to the purchaser of credit protection if the underlying borrower defaults on the related interest rate contract. The Company may enter into protection sold or protection purchased RPAs. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and the institutional counterparties, which is a part of the Company’s normal credit review and monitoring process. All reference entities of the protection sold RPAs were investment grade, and the weighted-average remaining maturity was 2.8 years and 2.4 years as of December 31, 2023 and 2022, respectively. Assuming the underlying borrowers referenced in the interest rate contracts defaulted as of December 31, 2023, the maximum exposure of protection sold RPAs would be $177 thousand. In comparison, assuming the underlying borrowers referenced in the interest rate contracts defaulted as of December 31, 2022, the Company would not have any current exposure in the protection sold RPAs.

As of December 31, 2023, the Company had one outstanding protection purchased RPA with a notional amount of $25 million and minimal fair value. In comparison, the Company did not have any outstanding protection purchased RPAs as of December 31, 2022.

Equity Contracts — As part of the loan origination process, the Company may obtain warrants to purchase the preferred and/or common stock of the borrowers’ companies, which are mainly in the technology and life sciences sectors. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. In connection with the Company’s investment in Rayliant during the third quarter of 2023, the Company granted performance-based RSUs as part of its consideration. The vesting of these equity contracts is contingent on Rayliant meeting certain financial performance targets during the future performance period. For additional information on these equity contracts, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 7 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities to the Consolidated Financial Statements in this Form 10-K.

The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the years ended December 31, 2023, 2022 and 2021:



	Classification on Consolidated Statement of Income	Year Ended December 31,
($ in thousands)		2023		2022		2021
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative income	$	(2,989)	$	13,905	$	11,493
Foreign exchange contracts	Foreign exchange income	52,817		13,799		45,921
Credit contracts	Customer derivative income	(1)		118		139
Equity contracts - warrants	Lending fees	13		151		382
Commodity contracts	Customer derivative income	(25)		48		(58)
Net gains		$	49,815	$	28,021	$	57,877

Credit-Risk-Related Contingent Features — Certain of the Company’s over-the-counter derivative contracts contain early termination provisions that require the Company to settle any outstanding balances upon the occurrence of a specified credit-risk-related event. Such an event primarily relates to a downgrade in the credit rating of East West Bank to below investment grade. As of December 31, 2023, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $9 thousand, for which no collateral was posted to cover these positions. In comparison, as of December 31, 2022, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $3 million, for which $1 million of collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, minimal additional collateral would have been required to be posted as of both December 31, 2023 and 2022.

Offsetting of Derivatives

The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of overcollateralization are not shown:



($ in thousands)	As of December 31, 2023
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	610,920	$	(75,534)	$	(237,258)	$	298,128	$	(246,259)	$	51,869

	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	613,314	$	(75,534)	$	(636)	$	537,144	$	—	$	537,144



($ in thousands)	As of December 31, 2022
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	755,328	$	(242,745)	$	(372,038)	$	140,545	$	(60,567)	$	79,978

	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	887,264	$	(242,745)	$	—	$	644,519	$	(38,438)	$	606,081

(1)Includes $3 million and $2 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2023 and 2022, respectively.

(2)Includes $16 million and $1 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2023 and 2022, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $244 million and $385 million as of December 31, 2023 and 2022, respectively. Of the gross cash collateral received, $237 million and $372 million were used to offset against derivative assets as of December 31, 2023 and 2022, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements were $1 million and $490 thousand as of December 31, 2023 and 2022, respectively. Of the gross cash collateral pledged, $1 million was used to offset against derivative liabilities as of December 31, 2023. In comparison, no cash collateral was used to offset against derivative liabilities as of December 31, 2022.

(5)Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts.

In addition to the amounts included in the tables above, the Company has balance sheet netting related to the resale and repurchase agreements. Refer to Note 3 — Assets Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-K for additional information. Refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-K for fair value measurement disclosures on derivatives.

Loans Receivable and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans Receivable and Allowance for Credit Losses

The following table presents the composition of the Company’s loans held-for-investment outstanding as of December 31, 2023 and 2022:



($ in thousands)	December 31, 2023		December 31, 2022
Commercial:
C&I	$	16,581,079		$	15,711,095
CRE:
CRE	14,777,081			13,857,870
Multifamily residential	5,023,163			4,573,068
Construction and land	663,868			638,420
Total CRE	20,464,112			19,069,358
Total commercial	37,045,191			34,780,453
Consumer:
Residential mortgage:
Single-family residential	13,383,060			11,223,027
HELOCs	1,722,204			2,122,655
Total residential mortgage	15,105,264			13,345,682
Other consumer	60,327			76,295
Total consumer	15,165,591			13,421,977
Total loans held-for-investment (1)	$	52,210,782		$	48,202,430
Allowance for loan losses	(668,743)			(595,645)
Loans held-for-investment, net (1)	$	51,542,039		$	47,606,785

(1)Includes $71 million and $70 million of net deferred loan fees and net unamortized premiums as of December 31, 2023 and 2022, respectively.

Accrued interest receivable on loans held-for-investment was $267 million and $208 million as of December 31, 2023 and 2022, respectively, and was included in Other assets on the Consolidated Balance Sheet. The interest income reversed was insignificant for the years ended December 31, 2023, 2022 and 2021. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Investment to the Consolidated Financial Statements in this Form 10-K. The Company also has loans held-for-sale. For the Company’s accounting policy on loans held-for-sale, refer to Note 1 — Summary of Significant Accounting Policies — Loans Held-for-Sale to the Consolidated Financial Statements in this Form 10-K.

The Company’s FRBSF and FHLB borrowings are primarily secured by loans held-for-investment. Loans held-for-investment totaling $37.2 billion and $28.3 billion, respectively, were pledged to secure borrowings and provide additional borrowing capacity as of December 31, 2023 and 2022.

Credit Quality Indicators

All loans are subject to the Company’s credit review and monitoring process. For the commercial loan portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the consumer loan portfolio, payment performance or delinquency is typically the driving indicator for risk ratings.

The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of 1 through 10:

•Pass — loans risk rated 1 through 5 are assigned an internal risk rating category of “Pass.” Loans risk rated 1 are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions.

•Special mention — loans assigned a risk rating of 6 have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating category of “Special Mention.”

•Substandard — loans assigned a risk rating of 7 or 8 have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating category of “Substandard.”

•Doubtful — loans assigned a risk rating of 9 have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating category of “Doubtful.”

•Loss — loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating category of “Loss.”

Loan exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans.

The following tables summarize the Company’s loans held-for-investment and current year-to-date gross write-offs by loan portfolio segments, internal risk ratings and vintage year as of December 31, 2023 and 2022. The vintage year is the year of loan origination, renewal or major modification. Revolving loans that are converted to term loans presented in the tables below are excluded from term loans by vintage year columns.



	December 31, 2023


	Term Loans by Origination Year

($ in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans			Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	2,314,463	$	1,628,560	$	1,296,936	$	331,982	$	245,173	$	164,159	$	10,053,757		$	20,143	$	16,055,173
Criticized (accrual)	105,119		67,899		120,574		15,064		40,920		22,098		117,196			—		488,870
Criticized (nonaccrual)	2,104		7,916		131		4,819		2,979		18,137		950			—		37,036


Total C&I	2,421,686		1,704,375		1,417,641		351,865		289,072		204,394		10,171,903			20,143		16,581,079

YTD gross write-offs (2)	350		10,454		424		3,758		9,748		2,648		1,593			—		28,975

CRE:

Pass	2,492,915		4,086,385		2,216,257		1,428,724		1,600,844		2,494,382		92,851			62,771		14,475,129
Criticized (accrual)	36,855		34,485		30,336		48,250		24,437		104,340		—			—		278,703
Criticized (nonaccrual)	—		—		—		—		444		22,805		—			—		23,249


Subtotal CRE	2,529,770		4,120,870		2,246,593		1,476,974		1,625,725		2,621,527		92,851			62,771		14,777,081

YTD gross write-offs (2)	—		—		—		—		—		1,329		—			—		1,329

Multifamily residential:
Pass	665,780		1,481,161		808,333		612,408		498,491		857,713		8,690			1,281		4,933,857
Criticized (accrual)	—		3,356		54,614		—		693		25,974		—			—		84,637
Criticized (nonaccrual)	—		—		—		—		—		4,669		—			—		4,669


Subtotal multifamily residential	665,780		1,484,517		862,947		612,408		499,184		888,356		8,690			1,281		5,023,163

YTD gross write-offs	—		—		—		—		—		3		—			—		3

Construction and land:
Pass	209,775		280,151		120,724		39,928		808		5,501		6,981		$	—		663,868
Criticized (accrual)	—		—		—		—		—		—		—			—		—
Criticized (nonaccrual)	—		—		—		—		—		—		—			—		—
Subtotal construction and land	209,775		280,151		120,724		39,928		808		5,501		6,981			—		663,868

YTD gross write-offs (2)	—		—		—		—		—		—		—			—		—

Total CRE	3,405,325		5,885,538		3,230,264		2,129,310		2,125,717		3,515,384		108,522			64,052		20,464,112

YTD gross write-offs (2)	—		—		—		—		—		1,332		—			—		1,332

Total commercial	$	5,827,011	$	7,589,913	$	4,647,905	$	2,481,175	$	2,414,789	$	3,719,778	$	10,280,425		$	84,195	$	37,045,191

YTD total commercial gross write-offs (2)	$	350	$	10,454	$	424	$	3,758	$	9,748	$	3,980	$	1,593		$	—	$	30,307


	December 31, 2023


	Term Loans by Origination Year
($ in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans			Revolving Loans Converted to Term Loans (1)		Total
Consumer:
Residential mortgage:
Single-family residential:
Pass (3)	$	3,188,830	$	3,340,789	$	2,279,802	$	1,594,525	$	980,686	$	1,959,974	$	—		$	—	$	13,344,606
Criticized (accrual)	2,680		4,471		566		1,440		1,503		4,167		—			—		14,827
Criticized (nonaccrual) (3)	4,466		837		3,902		2,081		3,626		8,715		—			—		23,627
Subtotal single-family residential mortgage	3,195,976		3,346,097		2,284,270		1,598,046		985,815		1,972,856		—			—		13,383,060
YTD gross write-offs	—		—		—		—		—		—		—			—		—

HELOCs:
Pass	3,641		3,882		1,734		3,153		729		9,251		1,551,074			126,280		1,699,744
Criticized (accrual)	565		1,219		1,872		101		185		1,470		2,548			1,089		9,049
Criticized (nonaccrual)	815		856		413		72		584		6,863		279			3,529		13,411
Subtotal HELOCs	5,021		5,957		4,019		3,326		1,498		17,584		1,553,901			130,898		1,722,204
YTD gross write-offs (2)	—		—		—		—		—		41		—			6		47

Total residential mortgage	3,200,997		3,352,054		2,288,289		1,601,372		987,313		1,990,440		1,553,901			130,898		15,105,264
YTD gross write-offs (2)	—		—		—		—		—		41		—			6		47

Other consumer:
Pass	2,286		18,098		135		—		—		13,244		26,432		$	—		60,195
Criticized (accrual)	—		—		—		—		—		—		—			—		—
Criticized (nonaccrual)	—		—		—		—		—		—		132			—		132
Total other consumer	2,286		18,098		135		—		—		13,244		26,564			—		60,327
YTD gross write-offs (2)	—		—		—		—		—		—		—			—		—

Total consumer	$	3,203,283	$	3,370,152	$	2,288,424	$	1,601,372	$	987,313	$	2,003,684	$	1,580,465		$	130,898	$	15,165,591
YTD total consumer gross write-offs (2)	$	—	$	—	$	—	$	—	$	—	$	41	$	—		$	6	$	47

Total loans held-for-investment:
Pass	$	8,877,690	$	10,839,026	$	6,723,921	$	4,010,720	$	3,326,731	$	5,504,224	$	11,739,785		$	210,475	$	51,232,572
Criticized (accrual)	145,219		111,430		207,962		64,855		67,738		158,049		119,744			1,089		876,086
Criticized (nonaccrual)	7,385		9,609		4,446		6,972		7,633		61,189		1,361			3,529		102,124



Total	$	9,030,294	$	10,960,065	$	6,936,329	$	4,082,547	$	3,402,102	$	5,723,462	$	11,860,890		$	215,093	$	52,210,782
YTD total loans held-for-investment gross write-offs (2)	$	350	$	10,454	$	424	$	3,758	$	9,748	$	4,021	$	1,593		$	6	$	30,354



	December 31, 2022
	Term Loans by Origination Year
($ in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term Loans (1)		Total
Commercial:
C&I:
Pass	$	2,831,834	$	2,053,215	$	623,026	$	392,013	$	143,970	$	97,605	$	9,177,401	$	20,548	$	15,339,612
Criticized (accrual)	72,210		34,296		48,761		34,221		20,646		12,933		97,988		—		321,055
Criticized (nonaccrual)	18,722		4,797		10,733		243		5,618		10,315		—		—		50,428


Total C&I	2,922,766		2,092,308		682,520		426,477		170,234		120,853		9,275,389		20,548		15,711,095

CRE:
Pass	4,178,780		2,404,634		1,505,150		1,771,679		1,471,710		1,909,925		165,653		22,009		13,429,540
Criticized (accrual)	3,518		60,573		159,424		40,095		91,132		32,173		1,455		16,716		405,086
Criticized (nonaccrual)	—		19,044		—		—		—		4,200		—		—		23,244


Subtotal CRE	4,182,298		2,484,251		1,664,574		1,811,774		1,562,842		1,946,298		167,108		38,725		13,857,870
Multifamily residential:
Pass	1,500,289		892,598		641,677		519,614		350,044		625,293		11,325		—		4,540,840
Criticized (accrual)	—		—		—		707		4,276		27,076		—		—		32,059
Criticized (nonaccrual)	—		—		—		—		—		169		—		—		169


Subtotal multifamily residential	1,500,289		892,598		641,677		520,321		354,320		652,538		11,325		—		4,573,068
Construction and land:
Pass	288,394		276,839		31,804		3,104		2,805		231		9,073		—		612,250
Criticized (accrual)	4,504		—		—		—		21,666		—		—		—		26,170
Criticized (nonaccrual)	—		—		—		—		—		—		—		—		—
Subtotal construction and land	292,898		276,839		31,804		3,104		24,471		231		9,073		—		638,420
Total CRE	5,975,485		3,653,688		2,338,055		2,335,199		1,941,633		2,599,067		187,506		38,725		19,069,358
Total commercial	$	8,898,251	$	5,745,996	$	3,020,575	$	2,761,676	$	2,111,867	$	2,719,920	$	9,462,895	$	59,273	$	34,780,453
Consumer:

Single-family residential:
Pass (3)	$	3,548,894	$	2,453,717	$	1,775,696	$	1,101,965	$	817,164	$	1,500,359	$	—	$	—	$	11,197,795
Criticized (accrual)	—		1,275		785		1,463		4,352		3,935		—		—		11,810
Criticized (nonaccrual) (3)	141		—		204		3,202		1,721		8,154		—		—		13,422
Subtotal single-family residential mortgage	3,549,035		2,454,992		1,776,685		1,106,630		823,237		1,512,448		—		—		11,223,027
HELOCs:
Pass	520		3,583		7,336		3,203		525		8,960		1,958,692		127,401		2,110,220
Criticized (accrual)	—		6		—		—		—		—		4		1,079		1,089
Criticized (nonaccrual)	—		—		483		231		1,017		4,844		1,001		3,770		11,346
Subtotal HELOCs	520		3,589		7,819		3,434		1,542		13,804		1,959,697		132,250		2,122,655
Total residential mortgage	3,549,555		2,458,581		1,784,504		1,110,064		824,779		1,526,252		1,959,697		132,250		13,345,682
Other consumer:
Pass	17,088		137		5,356		—		—		15,808		37,804		—		76,193
Criticized (accrual)	3		—		—		—		—		—		—		—		3
Criticized (nonaccrual)	—		—		—		—		—		—		99		—		99
Total other consumer	17,091		137		5,356		—		—		15,808		37,903		—		76,295
Total consumer	$	3,566,646	$	2,458,718	$	1,789,860	$	1,110,064	$	824,779	$	1,542,060	$	1,997,600	$	132,250	$	13,421,977
Total by risk rating:
Pass	$	12,365,799	$	8,084,723	$	4,590,045	$	3,791,578	$	2,786,218	$	4,158,181	$	11,359,948	$	169,958	$	47,306,450
Criticized (accrual)	80,235		96,150		208,970		76,486		142,072		76,117		99,447		17,795		797,272
Criticized (nonaccrual)	18,863		23,841		11,420		3,676		8,356		27,682		1,100		3,770		98,708
Total	$	12,464,897	$	8,204,714	$	4,810,435	$	3,871,740	$	2,936,646	$	4,261,980	$	11,460,495	$	191,523	$	48,202,430

(1)$29 million, $26 million and $6 million of total commercial loans, primarily comprised of CRE revolving loans, converted to term loans during the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023 and 2021, respectively, $44 million and $54 million of total consumer loans, comprised of HELOCs, converted to term loans. For the year ended December 31, 2022, no consumer loans converted to term loans.

(2)Excludes gross write-offs associated with loans the Company sold or settled.

(3)As of each of December 31, 2023 and 2022, $1 million of nonaccrual loans whose payments were guaranteed by the Federal Housing Administration were classified with a “Pass” rating.

Nonaccrual and Past Due Loans

Loans that are 90 or more days past due are generally placed on nonaccrual status, unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. The following tables present the aging analysis of loans held-for-investment as of December 31, 2023 and 2022:



	December 31, 2023
($ in thousands)	Current Accruing Loans		Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Total Nonaccrual Loans		Total Loans
Commercial:
C&I	$	16,508,394	$	28,550	$	7,099	$	35,649	$	37,036	$	16,581,079
CRE:
CRE	14,750,315		1,719		1,798		3,517		23,249		14,777,081
Multifamily residential	5,017,897		597		—		597		4,669		5,023,163
Construction and land	650,617		13,251		—		13,251		—		663,868
Total CRE	20,418,829		15,567		1,798		17,365		27,918		20,464,112
Total commercial	36,927,223		44,117		8,897		53,014		64,954		37,045,191
Consumer:
Residential mortgage:
Single-family residential	13,313,455		29,285		15,943		45,228		24,377		13,383,060
HELOCs	1,687,301		12,266		9,226		21,492		13,411		1,722,204
Total residential mortgage	15,000,756		41,551		25,169		66,720		37,788		15,105,264
Other consumer	56,930		3,123		142		3,265		132		60,327
Total consumer	15,057,686		44,674		25,311		69,985		37,920		15,165,591
Total	$	51,984,909	$	88,791	$	34,208	$	122,999	$	102,874	$	52,210,782



	December 31, 2022
($ in thousands)	Current Accruing Loans		Accruing Loans 30-59 Days Past Due		Accruing Loans 60-89 Days Past Due		Total Accruing Past Due Loans		Total Nonaccrual Loans		Total Loans
Commercial:
C&I	$	15,651,312	$	6,482	$	2,873	$	9,355	$	50,428	$	15,711,095
CRE:
CRE	13,820,441		14,185		—		14,185		23,244		13,857,870
Multifamily residential	4,571,899		678		322		1,000		169		4,573,068
Construction and land	638,420		—		—		—		—		638,420
Total CRE	19,030,760		14,863		322		15,185		23,413		19,069,358
Total commercial	34,682,072		21,345		3,195		24,540		73,841		34,780,453
Consumer:
Residential mortgage:
Single-family residential	11,183,134		13,523		12,130		25,653		14,240		11,223,027
HELOCs	2,102,523		7,700		1,086		8,786		11,346		2,122,655
Total residential mortgage	13,285,657		21,223		13,216		34,439		25,586		13,345,682
Other consumer	73,004		109		3,083		3,192		99		76,295
Total consumer	13,358,661		21,332		16,299		37,631		25,685		13,421,977
Total	$	48,040,733	$	42,677	$	19,494	$	62,171	$	99,526	$	48,202,430

The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both December 31, 2023 and 2022. Nonaccrual loans may not have an allowance for credit losses if the loan balances are well secured by collateral values and there is no loss expectation.



($ in thousands)	December 31, 2023		December 31, 2022
Commercial:
C&I	$	33,089	$	11,398
CRE	22,653		22,944
Multifamily residential	4,235		—
Total commercial	59,977		34,342
Consumer:
Single-family residential	4,852		2,998
HELOCs	7,256		7,245
Total consumer	12,108		10,243
Total nonaccrual loans with no related allowance for loan losses	$	72,085	$	44,585

Foreclosed Assets

The Company acquires assets from borrowers through loan restructurings, workouts, or foreclosures. Assets acquired may include real properties (e.g., real estate, land, and buildings) and commercial and personal properties. The Company recognizes foreclosed assets upon receiving assets in satisfaction of a loan (e.g., taking legal title or physical possession).

Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $11 million in foreclosed assets as of December 31, 2023, compared with $270 thousand as of December 31, 2022. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of the consumer real estate loans that were in an active or suspended foreclosure process was $8 million and $7 million as of December 31, 2023 and 2022, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Effective January 1, 2023, the Company adopted ASU 2022-02, which in part eliminated the accounting for TDR and enhanced disclosure requirements for loan modifications to borrowers experiencing financial difficulty. See Note 1 — Summary of Significant Accounting Policies — Loan Modifications to the Consolidated Financial Statements in this Form 10-K for additional information. As part of the Company’s loss mitigation efforts, the Company may agree to modify the contractual terms of a loan to assist borrowers experiencing financial difficulty. The Company negotiates loan modifications on a case-by-case basis to achieve mutually agreeable terms that maximize loan collectability and meet the borrower’s financial needs. The Company considers various factors to identify borrowers experiencing financial difficulty. The primary factor for consumer borrowers is delinquency status. For commercial loan borrowers, these factors include credit risk ratings, the probability of loan risk rating downgrades, and overall risk profile changes. The modification may include, but is not limited to, payment delays, interest rate reductions, term extensions, principal forgiveness, or a combination of such modifications. Commercial loan borrowers that require immaterial modifications such as insignificant interest rate changes, short-term extensions (90 days or less) from the original maturity date, or temporary waivers or extensions of financial covenants which would not constitute material credit actions, are generally not considered to be experiencing financial difficulty and are not included in the disclosure. Insignificant payment deferrals (three months or less in the last 12 months) are also not included in the disclosure.

The following table presents the amortized cost of loans that were modified during the year ended December 31, 2023 by loan class and modification type:



	Year Ended December 31, 2023
	Modification Type
($ in thousands)	Term Extension		Payment Delay		Combination: Term Extension/ Payment Delay		Combination: Rate Reduction/ Term Extension		Combination: Rate Reduction/ Payment Delay		Total		Modification as a % of Loan Class
Commercial:
C&I	$	62,704	$	6,842	$	—	$	—	$	—	$	69,546	0.42	%
CRE:
CRE	13,939		—		—		32,470		—		46,409		0.23	%


Total CRE	13,939		—		—		32,470		—		46,409
Total commercial	76,643		6,842		—		32,470		—		115,955
Consumer:
Residential mortgage:
Single-family residential:	—		10,202		3,967		—		—		14,169		0.11	%
HELOCs	—		3,148		1,170		—		815		5,133		0.30	%
Total residential mortgage	—		13,350		5,137		—		815		19,302



Total consumer	—		13,350		5,137		—		815		19,302
Total	$	76,643	$	20,192	$	5,137	$	32,470	$	815	$	135,257

The following table presents the financial effects of the loan modifications for the year ended December 31, 2023 by loan class and modification type:



Financial Effects of Loan Modifications
Year Ended December 31, 2023
	($ in thousands)	Principal Forgiveness			Weighted-Average Interest Rate Reduction			Weighted-Average Term Extension (in years)	Weighted-Average Payment Delay (in years)
	Commercial:
	C&I	$	371	(1)	—	%	(1)	1.3 years	0.9 years

	CRE	—			3.00	%		2.1 years	—




	Consumer:

	Single-family residential	—			—	%		9.3 years	1.8 years
	HELOCs	—			0.11	%		14.2 years	4.6 years





	Total	$	371

(1)Comprised of C&I loans modified during the year ended December 31, 2023 where the interest rate is waived in addition to principal forgiveness. No recorded investment was outstanding as of December 31, 2023.

A modified loan may become delinquent and may result in a payment default (generally 90 days past due) subsequent to modification. During the year ended December 31, 2023, two residential mortgage loans that were modified as payment delay totaling $1 million subsequently defaulted.

The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of loans that were modified as of December 31, 2023 since the adoption of ASU 2022-02 on January 1, 2023:



	Payment Performance as of December 31, 2023
($ in thousands)		Current		30-89 Days Past Due		90+ Days Past Due		Total
Commercial:
C&I		$	52,087	$	8,153	$	9,306	$	69,546
CRE:
CRE		46,409		—		—		46,409


Total CRE		46,409		—		—		46,409
Total commercial		98,496		8,153		9,306		115,955
Consumer:
Residential mortgage:
Single-family residential		11,197		2,425		547		14,169
HELOCs		4,207		177		749		5,133
Total residential mortgage		15,404		2,602		1,296		19,302

Total consumer		15,404		2,602		1,296		19,302
Total		$	113,900	$	10,755	$	10,602	$	135,257

As of December 31, 2023, commitments to lend additional funds to borrowers whose loans were modified were $4 million.

Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02

Prior to the adoption of ASU 2022-02, the Company accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. ASU 2022-02 eliminated TDR accounting prospectively for all restructurings occurring on or after January 1, 2023.

The following table presents the additions to TDRs for the years ended December 31, 2022, and 2021:



	Loans Modified as TDRs During the Year Ended
	December 31, 2022							December 31, 2021
($ in thousands)	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Financial Impact (2)		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Financial Impact (2)
Commercial:
C&I	7	$	69,050	$	38,415	$	12,638	5	$	24,155	$	20,263	$	1,108
CRE:

Multifamily residential	—	—		—		—		1	1,101		1,066		—

Total CRE	—	—		—		—		1	1,101		1,066		—
Total commercial	7	69,050		38,415		12,638		6	25,256		21,329		1,108
Consumer:
Residential mortgage:

HELOCs	2	662		697		2		—	—		—		—
Total residential mortgage	2	662		697		2		—	—		—		—
Total consumer	2	662		697		2		—	—		—		—
Total	9	$	69,712	$	39,112	$	12,640	6	$	25,256	$	21,329	$	1,108

(1)Includes subsequent payments after modification and reflects the balance as of December 31, 2022 and 2021.

(2)Includes charge-offs and specific reserves recorded since the modification date. Loans modified more than once are reported in the period they were first modified.

The following table presents the TDR post-modification outstanding balances by the primary modification type for the years ended December 31, 2022 and 2021:



	Modification Type During the Year Ended
	December 31, 2022				December 31, 2021
($ in thousands)	Principal (1)		Interest Rate Reduction			Other (2)		Total		Principal (1)		Interest Rate Reduction		Other		Total
Commercial:
C&I	$	24,238	$	—		$	14,177	$	38,415	$	4,679	$	15,584	$	—	$	20,263
CRE:

Multifamily residential	—		—			—		—		1,066		—		—		1,066

Total CRE	—		—			—		—		1,066		—		—		1,066
Total commercial	24,238		—			14,177		38,415		5,745		15,584		—		21,329
Consumer:
Residential mortgage:

HELOCs	697		—			—		697		—		—		—		—
Total residential mortgage	697		—			—		697		—		—		—		—

Total consumer	697		—			—		697		—		—		—		—
Total	$	24,935	$	—		$	14,177	$	39,112	$	5,745	$	15,584	$	—	$	21,329

(1)Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only.

(2)Includes primarily funding to secure additional collateral and provide liquidity to collateral-dependent and term extension to C&I loans.

After a loan is modified as a TDR, the Company continues to monitor its performance under its most recent restructured terms. A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring. The following table presents information on loans that entered into default during the years ended December 31, 2022 and 2021 that were modified as TDRs during the 12 months preceding payment default:



		Loans Modified as TDRs that Subsequently Defaulted During the Year Ended December 31,
	2022		2021
($ in thousands)		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial:
C&I		2	$	10,296	1	$	11,431





Total commercial		2	10,296		1	11,431







Total		2	$	10,296	1	$	11,431

As of December 31, 2022, the remaining commitments to lend to borrowers whose terms of their outstanding owed balances were modified as TDRs was $16 million.

Allowance for Credit Losses

The Company has a current expected credit losses (“CECL”) framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The Company’s allowance for credit losses, which includes both the allowance for loan losses and the allowance for unfunded credit commitments, is calculated with the objective of maintaining a reserve sufficient to absorb losses inherent in our credit portfolios. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses, periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors.

The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense.

The allowance for credit losses estimation involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures that share risk characteristics with other similar exposures are collectively evaluated. The collectively evaluated loans include performing loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis.

Allowance for Collectively Evaluated Loans

The allowance for collectively evaluated loans consists of a quantitative component that assesses the different risk factors considered in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below.

Quantitative Component — The Company applies quantitative methods to estimate loan losses by considering a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios which include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted, multiple-scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, combined with downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the life of the loans extends beyond the reasonable and supportable forecast period, the Company will consider historical experience or long-run macroeconomic trends over the remaining life of the loans to estimate the allowance for loan losses.

There were no changes to the reasonable and supportable forecast period, except to the C&I segment, and no changes to the reversion to the historical loss experience method in 2023 and 2022. The reasonable and supportable forecast period for the C&I segment changed from 11 quarters to eight quarters due to model redevelopment during the third quarter of 2023.

The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment:

Portfolio Segment

Risk Characteristics

Macroeconomic Variables

C&I

Age percentage, size at origination, delinquency status, sector and risk rating

Unemployment rate, Gross Domestic Product (“GDP”), and U.S. Treasury rates (1)

CRE, Multifamily residential, and Construction and land

Delinquency status, maturity date, collateral value, property type, and geographic location

Unemployment rate, GDP, and U.S. Treasury rates

Single-family residential and HELOCs

FICO score, delinquency status, maturity date, collateral value, and geographic location

Unemployment rate, GDP, and Home Price Indices

Other consumer

Loss rate approach

Immaterial (2)

(1)Macroeconomic variables were updated due to model redevelopment.

(2)Macroeconomic variables are included in the qualitative estimate.

Quantitative Component — Allowance for Loan Losses for the Commercial Loan Portfolio

The Company’s C&I lifetime loss rate model estimates the loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate.

To generate estimates of expected loss at the loan level for CRE, multifamily residential, and construction and land loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan. The forecast of future economic conditions returns to long-run historical economic trends within the reasonable and supportable period.

To estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience.

Quantitative Component — Allowance for Loan Losses for the Consumer Loan Portfolio

For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. The forecast of future economic conditions returns to long-run historical economic trends after the reasonable and supportable period. To estimate the life of a loan for the single-family residential and HELOC loan portfolios, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. For other consumer loans, the Company uses a loss rate approach.

Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to:

–loan growth trends;

–the volume and severity of past due financial assets, and the volume and severity of criticized or adversely classified financial assets;

–the Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices;

–knowledge of a borrower’s operations;

–the quality of the Company’s credit review system;

–the experience, ability and depth of the Company’s management and associates;

–the effect of other external factors such as the regulatory and legal environments, or changes in technology;

–actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and

–risk factors in certain industry sectors not captured by the quantitative models.

The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period.

While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk.

Allowance for Individually Evaluated Loans

When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; or (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan.

•Collateral-Dependent Loans — The allowance of a collateral-dependent loan is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of December 31, 2023, collateral-dependent commercial and consumer loans totaled $30 million and $12 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $47 million and $13 million, respectively, as of December 31, 2022. The collateral-dependent loans decreased from December 31, 2022, predominantly driven by the adoption of ASU 2022-02 which eliminated TDR guidance. The Company's collateral-dependent loans were secured by real estate. As of both December 31, 2023 and 2022, the collateral value of the properties securing the collateral-dependent loans, net of selling costs, exceeded the recorded value of the loans.

The following tables summarize the activity in the allowance for loan losses by portfolio segments for the years ended December 31, 2023, 2022 and 2021:



		Year Ended December 31, 2023
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total

Allowance for loan losses, December 31, 2022		$	371,700	$	149,864	$	23,373	$	9,109	$	35,564	$	4,475	$	1,560	$	595,645
Impact of ASU 2022-02 adoption		5,683		337		6		—		1		1		—		6,028
Allowance for loan losses, beginning of period		377,383		150,201		23,379		9,109		35,565		4,476		1,560		601,673
Provision for (reversal of) credit losses on loans	(a)	45,319		27,007		10,454		11,537		19,384		(424)		294		113,571
Gross charge-offs		(36,573)		(7,048)		(3)		(10,413)		—		(138)		(197)		(54,372)
Gross recoveries		6,803		432		545		236		69		33		—		8,118
Total net (charge-offs) recoveries		(29,770)		(6,616)		542		(10,177)		69		(105)		(197)		(46,254)
Foreign currency translation adjustment		(247)		—		—		—		—		—		—		(247)
Allowance for loan losses, end of period		$	392,685	$	170,592	$	34,375	$	10,469	$	55,018	$	3,947	$	1,657	$	668,743



		Year Ended December 31, 2022
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total

Allowance for loan losses, beginning of period		$	338,252	$	150,940	$	14,400	$	15,468	$	17,160	$	3,435	$	1,924	$	541,579

Provision for (reversal of) credit losses on loans	(a)	37,604		8,212		15,651		(6,433)		18,867		1,124		(258)		74,767
Gross charge-offs		(18,738)		(10,871)		(7,237)		—		(775)		(193)		(106)		(37,920)
Gross recoveries		16,824		1,583		559		74		312		109		—		19,461
Total net (charge-offs) recoveries		(1,914)		(9,288)		(6,678)		74		(463)		(84)		(106)		(18,459)
Foreign currency translation adjustment		(2,242)		—		—		—		—		—		—		(2,242)
Allowance for loan losses, end of period		$	371,700	$	149,864	$	23,373	$	9,109	$	35,564	$	4,475	$	1,560	$	595,645



		Year Ended December 31, 2021
		Commercial								Consumer
				CRE						Residential Mortgage
($ in thousands)		C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		HELOCs		Other Consumer		Total

Allowance for loan losses, beginning of period		$	398,040	$	163,791	$	27,573	$	10,239	$	15,520	$	2,690	$	2,130	$	619,983

(Reversal of) provision for credit losses on loans	(a)	(39,732)		14,282		(15,076)		7,576		1,965		745		1,286		(28,954)
Gross charge-offs		(32,490)		(28,430)		(130)		(2,954)		(1,046)		(45)		(1,497)		(66,592)
Gross recoveries		11,906		1,297		2,033		607		721		45		5		16,614
Total net (charge-offs) recoveries		(20,584)		(27,133)		1,903		(2,347)		(325)		—		(1,492)		(49,978)
Foreign currency translation adjustment		528		—		—		—		—		—		—		528
Allowance for loan losses, end of period		$	338,252	$	150,940	$	14,400	$	15,468	$	17,160	$	3,435	$	1,924	$	541,579

In addition to the allowance for loan losses, the Company maintains an allowance for unfunded credit commitments. The Company has three general areas for which it provides the allowance for unfunded credit commitments: (1) recourse obligations for loans sold, (2) letters of credit, and (3) unfunded lending commitments. The allowance for unfunded credit commitments is maintained at a level that management believes to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities. See Note 12 — Commitments and Contingencies to the Consolidated Financial Statements in this Form 10-K for additional information related to unfunded credit commitments. The following table summarizes the activities in the allowance for unfunded credit commitments for the years ended December 31, 2023, 2022 and 2021:



		Year Ended December 31,
($ in thousands)		2023		2022		2021
Unfunded credit facilities
Allowance for unfunded credit commitments, beginning of period		$	26,264	$	27,514	$	33,577

Provision for (reversal of) credit losses on unfunded credit commitments	(b)	11,429		(1,267)		(6,046)
Foreign currency translation adjustments		6		17		(17)
Allowance for unfunded credit commitments, end of period		37,699		26,264		27,514

Provision for (reversal of) credit losses	(a) + (b)	$	125,000	$	73,500	$	(35,000)

The allowance for credit losses was $706 million as of December 31, 2023, compared with $622 million as of December 31, 2022. The increase in the allowance for credit losses was primarily driven by net loan growth and economic forecasts that reflect continued caution regarding inflation, the high interest rate environment and the CRE market outlook.

The Company considers multiple economic scenarios to develop the estimate of the allowance for loan losses. The scenarios may consist of a baseline forecast representing management's view of the most likely outcome, and downside or upside scenarios that reflect possible worsening or improving economic conditions. As of both December 31, 2023 and 2022, the Company assigned the same weightings to its baseline, upside, and downside scenarios. The current baseline economic forecast continues to reflect key risks such as high inflation, high interest rates, concerns over global conflicts and oil prices. Compared with the December 2022 forecast, the 2023 baseline forecast projected lower annual GDP growth for 2023 and beyond, and a similarly higher unemployment rate for 2023 and beyond. The downside scenario assumed the economy falls into recession in the first quarter of 2024 as a result of an extended federal government shutdown, global and domestic political tensions, high inflation, and increased unemployment. The upside scenario assumed a more optimistic economic outlook for 2024, including stronger growth, stable financial market, and full employment starting in the first quarter of 2024.

Loan Transfers, Sales and Purchases

The Company’s primary business focus is on directly originated loans. The Company also purchases loans and participates in loan financing with other banks. In the normal course of doing business, the Company also provides other financial institutions with the ability to participate in commercial loans that it originates, by selling loans to such institutions. Purchased loans may be transferred from held-for-investment to held-for-sale, and write-downs to allowance for loan losses are recorded, when appropriate. The following tables provide information on the carrying value of loans transferred, sold and purchased for the held-for-investment portfolio, during the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31, 2023
	Commercial								Consumer
			CRE						Residential Mortgage
($ in thousands)	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	647,943	$	83,282	$	—	$	8,154	$	—	$	739,379


Sales (2)(3)	$	674,919	$	86,749	$	—	$	8,154	$	—	$	769,822
Purchases (4)	$	106,493	$	—	$	—	$	—	$	493,282	$	599,775



	Year Ended December 31, 2022
	Commercial								Consumer
			CRE						Residential Mortgage
($ in thousands)	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	530,524	$	88,075	$	—	$	—	$	5,178	$	623,777
Loans transferred from held-for-sale to held-for-investment	$	—	$	—	$	—	$	—	$	631	$	631
Sales (2)(3)	$	501,289	$	88,075	$	—	$	—	$	6,403	$	595,767
Purchases (4)	$	363,549	$	—	$	—	$	—	$	293,721	$	657,270



	Year Ended December 31, 2021
	Commercial								Consumer
			CRE						Residential Mortgage
($ in thousands)	C&I		CRE		Multifamily Residential		Construction and Land		Single-Family Residential		Total
Loans transferred from held-for-investment to held-for-sale (1)	$	496,655	$	78,834	$	—	$	18,883	$	5,238	$	599,610

Sales (2)(3)	$	502,694	$	78,834	$	—	$	21,557	$	18,458	$	621,543
Purchases (4)	$	476,690	$	—	$	370	$	—	$	564,651	$	1,041,711

(1)Includes write-downs of $5 million, $3 million and $12 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2023, 2022 and 2021, respectively.

(2)Includes originated loans sold of $513 million, $388 million and $413 million for the years ended December 31, 2023, 2022 and 2021, respectively. Originated loans sold consisted primarily of C&I and CRE loans for all periods.

(3)Includes $256 million of purchased loans sold in the secondary market for the year ended December 31, 2023, compared with $208 million for each of the years ended December 31, 2022 and 2021.

(4)C&I loan purchases were comprised primarily of syndicated C&I term loans.

Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities

12 Months Ended

Dec. 31, 2023

Investments in Qualified Affordable Housing Partnerships, Net [Abstract]

Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities

The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the regulatory affordable housing requirements for a 15-year minimum compliance period. In addition to affordable housing projects, the Company invests in small business investment companies and new market tax credit projects that qualify for CRA consideration, as well as eligible projects that qualify for renewable energy and historic tax credits. Investments in renewable energy tax credits help promote the development of renewable energy sources, and investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. For the Company’s accounting policies on tax credit investments, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Securities and Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net in this Form 10-K. For discussion on the Company’s impairment evaluation and monitoring process of tax credit investments, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net to the Consolidated Financial Statements in this Form 10-K.

The following table presents the investments and unfunded commitments of the Company’s qualified affordable housing partnerships, tax credit, and other investments, net as of December 31, 2023 and 2022:



	December 31,
	2023				2022
($ in thousands)	Assets		Liabilities - Unfunded Commitments (1)		Assets		Liabilities - Unfunded Commitments (1)

Investments in qualified affordable housing partnerships, net	$	419,785	$	251,746	$	413,253	$	266,654
Investments in tax credit and other investments, net	485,251		298,990		350,003		185,797
Total	$	905,036	$	550,736	$	763,256	$	452,451

(1)Included in Accrued expenses and other liabilities on the Consolidated Balance Sheet.

Investments in tax credit and other investments, net presented in the table above include equity securities that are mutual funds with readily determinable fair values of $25 million and $24 million, as of December 31, 2023 and 2022, respectively. The Company invests in these mutual funds for CRA purposes.

The following table presents additional information related to the investments in qualified affordable housing partnerships, tax credit and other investments for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Investments in qualified housing partnerships, net
Tax credits and other tax benefits recognized	$	60,939	$	52,132	$	50,643
Amortization expense included in income tax expense	$	43,041	$	38,759	$	33,248
Investments in tax credit and other investments, net
Amortization of tax credit and other investments (1)	$	120,299	$	113,358	$	122,457
Unrealized gains (losses) on equity securities with readily determinable values	$	255	$	(2,958)	$	(746)

(1)Includes net impairment recoveries of $1 million, $469 thousand and $1 million for the years ended December 31, 2023, 2022 and 2021, respectively. The activity was primarily related to historic and/or energy tax credits.

As of December 31, 2023, the Company’s unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments, net are estimated to be funded as follows:



($ in thousands)	Amount
2024	$	339,628
2025	178,171
2026	17,882
2027	2,527
2028	2,115
Thereafter	10,413
Total	$	550,736

Variable Interest Entities

The majority of both the investments in affordable housing partnerships and tax credit and other investments discussed above are variable interest entities where the Company is a limited partner in these partnerships, and an unrelated third party is typically the general partner or managing member who has control over the significant activities of these investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these investments due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture.

Other Investments

The Company acquired a 49.99% equity interest in Rayliant during the third quarter of 2023. Rayliant is an asset manager specializing in asset allocation and investment in developed and emerging markets. This investment will expand the Bank’s wealth management business and provide its customers with additional access to institutional-quality investment management products and services. The investment in Rayliant is accounted for under the equity method of accounting and is included in Other assets on the Consolidated Balance Sheet. The Company paid $95 million in cash and granted performance-based RSUs that are contingently issuable at vesting. The performance-based RSUs will vest on September 1, 2028 into a variable number of the Company’s shares of common stock, ranging from 20% to 200% of the 349,138 shares initially underlying such performance-based RSUs, based on Rayliant’s achievement of certain financial performance targets during the future performance period. For additional information related to these equity contracts accounted for as derivative liability, refer to Note 2 — Fair Value Measurement and Fair Value of Financial Instruments and Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-K. The carrying value of the Company's investment in Rayliant was $109 million as of December 31, 2023, of which $101 million was comprised of equity method goodwill.

The Company also held equity securities without readily determinable fair values totaling $146 million and $37 million as of December 31, 2023 and 2022, respectively. These equity securities without readily determinable fair values are included in Other Assets on the Consolidated Balance Sheet.

Goodwill	12 Months Ended
Goodwill	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Total goodwill was $466 million as of both December 31, 2023 and 2022. The Company’s goodwill impairment test is performed annually, as of December 31, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. The Company completed its annual goodwill impairment test as of December 31, 2023 by using a quantitative assessment, and concluded goodwill was not impaired. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Goodwill to the Consolidated Financial Statements in this Form 10-K.

Deposits

12 Months Ended

Dec. 31, 2023

DEPOSIT ACCOUNTS

Deposits

The following table presents the composition of the Company’s deposits as of December 31, 2023 and 2022:



	December 31,
($ in thousands)	2023		2022
Deposits:
Noninterest-bearing demand	$	15,539,872	$	21,051,090
Interest-bearing checking	7,558,908		6,672,165
Money market	13,108,727		12,265,024
Savings:
Domestic office	1,638,916		2,425,784
Foreign office	202,551		223,253
Time deposits (1):
Domestic office	16,037,287		11,878,734
Foreign office	2,006,177		1,451,799



Total deposits	$	56,092,438	$	55,967,849

(1)The aggregate amount of time deposits that met or exceeded the deposit insurance limit was $13.6 billion and $10.6 billion as of December 31, 2023 and 2022, respectively.

The following table presents the scheduled maturities of time deposits for the five years succeeding December 31, 2023:



($ in thousands)	Amount
2024	$	17,580,178
2025	134,264
2026	186,448
2027	139,279
2028	3,295

Total	$	18,043,464

Short-Term Borrowings and Long-Term Debt

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Short-Term Borrowings and Long-Term Debt

The following table presents details of the Company’s junior subordinated debt and short-term borrowings as of December 31, 2023 and 2022,



			December 31,
			2023		2022
($ in thousands)	Interest Rate	Maturity Dates	Amount		Amount
Parent company
Junior subordinated debt (1 ) — floating (2)	7.00% — 7.55%	2034 — 2037	$	148,249	$	147,950
Bank
Short-term borrowings	4.37%	3/19/2024	$	4,500,000	$	—

(1)The weighted-average contractual interest rates for junior subordinated debt were 6.87% and 3.49% as of December 31, 2023 and 2022, respectively.

(2)During the third quarter of 2023, all junior subordinated debt that referenced London Interbank Offered Rate transitioned to a Secured Overnight Financing Rate (“SOFR”)-based replacement rate plus the applicable stated margin.

Short-Term Borrowings — Bank Term Funding Program

As of December 31, 2023 , the Company’s short-term borrowings consisted of funds from the Bank Term Funding Program (“BTFP”), which was designed by the Federal Reserve to provide additional liquidity to U.S. depository institutions. The advances are limited to the par value of eligible collateral pledged by the borrower, for a term of up to one year. U.S. federally insured depository institutions can request advances under the BTFP until at least March 11, 2024.

The Company pledged eligible U.S. government agency and U.S. government-sponsored enterprise debt and mortgage-backed securities, and U.S. Treasury securities as collateral for the borrowings under the BTFP. As of December 31, 2023, the carrying amount of the Company’s pledged securities to the BTFP totaled $4.3 billion with a remaining borrowing capacity of $121 million. In comparison, there were no short-term borrowings as of December 31, 2022.

Long-Term Debt — Junior Subordinated Debt

As of December 31, 2023, East West had six statutory business trusts for the purpose of issuing junior subordinated debt to third party investors. The junior subordinated debt was issued in connection with the East West’s various pooled trust preferred securities offerings. The Trusts issued both fixed and variable rate capital securities, representing undivided preferred beneficial interests in the assets of the Trusts, to third party investors. East West is the owner of all the beneficial interests represented by the common securities of the Trusts. The junior subordinated debt is recorded as a component of long-term debt and includes the value of the common stock issued by six of East West’s wholly-owned subsidiaries in conjunction with these transactions. The common stock is recorded in Other assets on the Consolidated Balance Sheet for the amount issued in connection with these junior subordinated debt issuances. The proceeds from these issuances represent liabilities of East West to the Trusts and are reported as a component of Long-term debt on the Consolidated Balance Sheet. Interest payments on these securities are disbursed quarterly and are deductible for tax purposes.

The following table presents the outstanding junior subordinated debt issued by each trust as of December 31, 2023 and 2022:



				December 31, 2023				December 31, 2022
Issuer	Stated Maturity (1)	Stated Interest Rate	Current Rate	Aggregate Principal Amount of Trust Securities		Aggregate Principal Amount of the Junior Subordinated Debt		Aggregate Principal Amount of Trust Securities		Aggregate Principal Amount of the Junior Subordinated Debt
($ in thousands)
East West Capital Trust V	November 2034	3-month CME Term SOFR + 2.06%	7.44%	$	464	$	15,000	$	464	$	15,000
East West Capital Trust VI	September 2035	3-month CME Term SOFR + 1.76%	7.15%	619		20,000		619		20,000
East West Capital Trust VII	June 2036	3-month CME Term SOFR + 1.61%	7.00%	928		30,000		928		30,000
East West Capital Trust VIII	June 2037	3-month CME Term SOFR + 1.66%	7.02%	619		18,000		619		18,000
East West Capital Trust IX	September 2037	3-month CME Term SOFR + 2.16%	7.55%	928		30,000		928		30,000
MCBI Statutory Trust I	December 2035	3-month CME Term SOFR + 1.81%	7.20%	1,083		35,000		1,083		35,000
Total				$	4,641	$	148,000	$	4,641	$	148,000

(1)The debt instruments above mature in more than five years after December 31, 2023 and are subject to call options where early redemption requires appropriate notice.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The following table presents the components of income tax expense (benefit) for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Current income tax expense (benefit):
Federal	$	172,428	$	163,797	$	84,249
State	173,080		160,629		95,939
Foreign	2,240		3,133		(1,554)
Total current income tax expense	347,748		327,559		178,634
Deferred income tax (benefit) expense:
Federal	(24,319)		(23,484)		1,528
State	(23,415)		(21,835)		3,259
Foreign	(1,405)		1,331		(25)
Total deferred income tax (benefit) expense	(49,139)		(43,988)		4,762
Income tax expense	$	298,609	$	283,571	$	183,396

The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
	2023		2022		2021
Statutory U.S. federal tax rate	21.0	%	21.0	%	21.0	%
U.S. state income taxes, net of U.S. federal income tax effect	8.1		7.8		7.4

Tax credits and benefits, net of related expenses	(9.9)		(8.9)		(11.3)
Other, net	1.3		0.2		0.3
Effective tax rate	20.5	%	20.1	%	17.4	%

The following table summarizes the tax effects of temporary differences that give rise to a significant portion of deferred tax assets and liabilities as of December 31, 2023 and 2022:



	December 31,
($ in thousands)	2023		2022

Deferred tax assets:
Allowance for credit losses and nonperforming assets valuation allowance	$	217,731	$	191,187
Investments in qualified affordable housing partnerships, tax credit and other investments, net	28,216		21,011
Stock compensation and other accrued compensation	33,169		25,857
Interest income on nonaccrual loans	7,034		5,185
State taxes	9,885		13,259
Net unrealized losses on debt securities and derivatives	242,303		309,837

Premises and equipment	1,782		3,827
Lease liabilities	32,636		34,859
FDIC special assessment charge	22,212		—
Other	9,019		6,169
Total deferred tax assets	$	603,987	$	611,191


Deferred tax liabilities:
Equipment lease financing	$	15,564	$	27,237
Investments in qualified affordable housing partnerships, tax credit and other investments, net	23,103		7,709

FHLB stock dividends	1,947		1,926
Mortgage servicing assets	2,102		1,963
Acquired debts	1,398		1,477
Prepaid expenses	2,981		2,478



Operating lease right-of-use assets	30,272		32,606
Other	7,871		6,270
Total deferred tax liabilities	$	85,238	$	81,666
Net deferred tax assets	$	518,749	$	529,525

As of both December 31, 2023 and 2022, the Company concluded that no valuation allowance was necessary to reduce the deferred tax assets since estimated future taxable income will be sufficient to utilize these assets. For further information on the Company’s valuation policy on deferred taxes, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Income Taxes to the Consolidated Financial Statements in this Form 10-K.

The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022			2021
Beginning balance	$	477	$	5,045		$	5,045
Additions for tax positions related to prior years	459		—			—

Additions for tax positions related to current year	257		—			—
Settlements with taxing authorities	—		(4,568)		(1)	—
Ending balance	$	1,193	$	477		$	5,045

(1)In 2022, the Company settled an issue regarding previously claimed tax credits related to DC Solar and affiliates.

The Company recognizes interest and penalties, as applicable, related to the underpayment of income taxes as a component of Income tax expense on the Consolidated Statement of Income. The amount of net interest and penalties related to unrecognized tax benefits was immaterial for all periods presented.

The Company files federal income tax returns, as well as returns in various state and foreign jurisdictions. We are routinely examined by tax authorities in these various jurisdictions. The Company is subject to federal income tax examination for the tax years 2020 and forward. The Company is also subject to tax examination in various state and local jurisdictions for the tax years 2017 and forward. The Company does not believe that the outcome of unresolved issues or claims in any of the tax jurisdictions is likely to be material on the Company’s Consolidated Financial Statements. The Company believes that adequate provisions have been recorded for all income tax uncertainties consistent with ASC 740, Income Taxes as of December 31, 2023.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies

Commitments to Extend Credit — In the normal course of business, the Company provides loan commitments and letters of credit to customers on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. While the Company does not anticipate losses from these transactions, commitments to extend credit are included in determining the appropriate level of allowance for unfunded credit commitments.

The following table presents the Company’s credit-related commitments as of December 31, 2023 and 2022:



	December 31,
	2023										2022
($ in thousands)	Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total		Total
Loan commitments	$	4,576,927	$	3,511,660	$	889,219	$	163,641	$	9,141,447	$	8,211,571
Commercial letters of credit and SBLCs	953,220		387,008		137,758		1,132,775		2,610,761		2,291,966
Total	$	5,530,147	$	3,898,668	$	1,026,977	$	1,296,416	$	11,752,208	$	10,503,537

Loan commitments are agreements to lend to customers provided there are no violations of any conditions established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require commitment fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements.

Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset existing accounts. As of December 31, 2023, total letters of credit of $2.6 billion consisted of SBLCs of $2.6 billion and commercial letters of credit of $24 million. In comparison, as of December 31, 2022, total letters of credit of $2.3 billion consisted of SBLCs of $2.3 billion and commercial letters of credit of $22 million. As of both December 31, 2023 and 2022, substantially all SBLCs were graded “Pass” using the Bank’s internal credit risk rating system.

The Company applies the same credit underwriting criteria to extend loans, commitments and conditional obligations to customers. Each customer’s creditworthiness is evaluated on a case-by-case basis. Collateral and financial guarantees may be obtained based on management’s assessment of a customer’s credit risk. Collateral may include cash, accounts receivable, inventory, personal property, plant and equipment, and real estate property.

Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments, and amounted to $38 million and $26 million as of December 31, 2023 and 2022, respectively.

Guarantees — From time to time, the Company sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business. The Company is obligated to repurchase up to the recourse component of the loans if the loans default. The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of December 31, 2023 and 2022:



	Maximum Potential Future Payments												Carrying Value
	December 31,												December 31,
	2023										2022		2023		2022
($ in thousands)	Expire in One Year or Less		Expire After One Year Through Three Years		Expire After Three Years Through Five Years		Expire After Five Years		Total		Total		Total		Total
Single-family residential loans sold or securitized with recourse	$	17	$	19	$	28	$	5,824	$	5,888	$	6,781	$	5,888	$	6,781
Multifamily residential loans sold or securitized with recourse	—		—		165		14,831		14,996		14,996		19,020		21,320
Total	$	17	$	19	$	193	$	20,655	$	20,884	$	21,777	$	24,908	$	28,101

The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $40 thousand and $37 thousand as of December 31, 2023 and 2022, respectively. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse.

Litigation — The Company is a party to various legal actions arising in the ordinary course of its business. In accordance with ASC 450, Contingencies, the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more than the amounts accrued.

While it is impossible to ascertain the ultimate resolution or range of financial liability, based on information known to

the Company as of December 31, 2023, the Company does not believe there are any pending legal proceedings to which the Company is a party that, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Company’s financial condition. In light of the inherent uncertainty in legal proceedings, however, there can be no assurance that the ultimate resolution will not exceed established reserves and it is possible that the outcome of a particular matter, or a combination of matters, may be material to the Company’s financial condition for a particular period, depending upon the size of the loss and the Company’s income for that particular period.

Stock Compensation Plans

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Compensation Plans

Pursuant to the Company’s 2021 Stock Incentive Plan, as amended, the Company may issue stock, stock options, restricted stock, RSUs including performance-based RSUs, stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of East West and its subsidiaries. The Company has granted RSUs as its primary incentive awards. There were no outstanding awards other than RSUs as of December 31, 2023, 2022 and 2021. An aggregate of 17 million shares of common stock were authorized under the 2021 Stock Incentive Plan, and the total number of shares available for grant was approximately 4 million as of December 31, 2023.

The following table presents a summary of the total share-based compensation expense and the related net tax benefits associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Stock compensation costs	$	39,867	$	37,601	$	32,567
Related net tax benefits for stock compensation plans	$	8,959	$	5,293	$	1,760

Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle in shares of the Company’s common stock. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of RSUs are time-based vesting awards, others vest subject to attainment of additional specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation and Management Development Committee based on the performance in the year prior to the grant date of the award. The number of awards that vest can range from zero percent to a maximum of 200% of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years. For information on accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements in this Form 10-K.

The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that were settled in shares for the year ended December 31, 2023. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date:



	Time-Based RSUs			Performance-Based RSUs
	Shares	Weighted-Average Grant Date Fair Value		Shares	Weighted-Average Grant Date Fair Value
Outstanding, January 1, 2023	1,296,866	$	60.77	332,510	$	60.40
Granted	515,218	$	73.13	96,271	$	79.93
Vested	(543,032)	$	40.93	(152,558)	$	39.79
Forfeited	(62,534)	$	74.04	—	$	—
Outstanding, December 31, 2023	1,206,518	$	74.29	276,223	$	78.59

The weighted-average grant date fair value of the time-based RSUs granted during the years ended December 31, 2023, 2022, and 2021 was $73.13, $78.15, and $71.88, respectively. The weighted-average grant date fair value of the performance-based RSUs granted during the years ended December 31, 2023, 2022 and 2021 was $79.93, $77.91 and $77.67, respectively. The total fair value of time-based RSUs that vested during the years ended December 31, 2023, 2022 and 2021 was $39 million, $30 million and $23 million, respectively. The total fair value of performance-based RSUs that vested during the years ended December 31, 2023, 2022, and 2021 was $21 million, $18 million and $15 million, respectively.

As of December 31, 2023, there were $28 million of unrecognized compensation costs related to unvested time-based RSUs expected to be recognized over a weighted-average period of 1.76 years, and $15 million of unrecognized compensation costs related to unvested performance-based RSUs expected to be recognized over a weighted-average period of 1.77 years.

Employee Stock Purchase Plan — The 1998 Employee Stock Purchase Plan (the “Purchase Plan”) provides eligible employees of the Company the right to purchase shares of its common stock at a discount. Employees can purchase shares at 90% of the fair market price subject to an annual purchase limitation of $22,500 per employee. As of December 31, 2023, the Purchase Plan qualifies as a non-compensatory plan under Section 423 of the Internal Revenue Code and, accordingly, no compensation expense has been recognized. 2,000,000 shares of the Company’s common stock were authorized for sale under the Purchase Plan. During the years ended December 31, 2023 and 2022, 65,971 shares totaling $3 million and 48,990 shares totaling $3 million, respectively, were sold to employees under the Purchase Plan. As of December 31, 2023, there were 151,814 shares available under the Purchase Plan.

Stockholders’ Equity and Earnings Per Share

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Stockholders’ Equity and Earnings Per Share

The following table presents the basic and diluted EPS calculations for the years ended December 31, 2023, 2022 and 2021. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements in this Form 10-K.



	Year Ended December 31,
($ and shares in thousands, except per share data)	2023		2022		2021
Basic:
Net income	$	1,161,161	$	1,128,083	$	872,981

Weighted-average number of shares outstanding	141,164		141,326		141,826
Basic EPS	$	8.23	$	7.98	$	6.16
Diluted:
Net income	$	1,161,161	$	1,128,083	$	872,981

Weighted-average number of shares outstanding	141,164		141,326		141,826
Add: Diluted impact of unvested RSUs	738		1,166		1,314
Diluted weighted-average number of shares outstanding	141,902		142,492		143,140
Diluted EPS	$	8.18	$	7.92	$	6.10

For the years ended December 31, 2023, 2022 and 2021, approximately 283 thousand, 3 thousand and 6 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation.

Stock Repurchase Program — In 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to 500 million of the Company’s common stock. In 2023, the Company repurchased 1,506,091 shares at an average price of $54.56 per share at a total cost of $82 million. In 2022, the Company repurchased 1,385,517 shares at an average price of $72.17 per share at a total cost of $100 million. The Company did not repurchase any shares in 2021. As of December 31, 2023, the Company had approximately $172 million available for repurchases under its stock repurchase program.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the years ended December 31, 2023, 2022 and 2021:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, December 31, 2020	$	52,247	$	(1,230)	$	(6,692)	$	44,325



Net unrealized (losses) gains arising during the period	(136,846)		866		1,757		(134,223)
Amounts reclassified from AOCI	(1,104)		621		—		(483)
Changes, net of tax	(137,950)		1,487		1,757		(134,706)
Balance, December 31, 2021	$	(85,703)	$	257	$	(4,935)	$	(90,381)
Net unrealized losses arising during the period	(620,870)		(52,623)		(16,348)		(689,841)
Amounts reclassified from AOCI	11,758		2,835		—		14,593
Changes, net of tax	(609,112)		(49,788)		(16,348)		(675,248)
Balance, December 31, 2022	$	(694,815)	$	(49,531)	$	(21,283)	$	(765,629)
Net unrealized gains (losses) arising during the period	76,930		(4,277)		(56)		72,597
Amounts reclassified from AOCI	16,004		56,432		—		72,436
Changes, net of tax	92,934		52,155		(56)		145,033
Balance, December 31, 2023	$	(601,881)	$	2,624	$	(21,339)	$	(620,596)

(1)Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.

(2)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
	2023							2022						2021
($ in thousands)	Before-Tax			Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains (losses) on AFS debt securities arising during the period	$	109,216		$	(32,286)	$	76,930	$	(721,100)	$	213,221	$	(507,879)	$	(194,393)	$	57,547	$	(136,846)
Unrealized losses on debt securities transferred from AFS to HTM	—			—		—		(160,416)		47,425		(112,991)		—		—		—
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (1)	6,862		(2)	(2,029)		4,833		(1,306)		386		(920)		(1,568)		464		(1,104)
Amortization of unrealized losses on transferred securities (3)	15,860			(4,689)		11,171		18,000		(5,322)		12,678		—		—		—
Net change	131,938			(39,004)		92,934		(864,822)		255,710		(609,112)		(195,961)		58,011		(137,950)
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(5,767)			1,490		(4,277)		(74,069)		21,446		(52,623)		1,210		(344)		866
Net realized losses reclassified into net income (4)	79,843			(23,411)		56,432		4,004		(1,169)		2,835		868		(247)		621
Net change	74,076			(21,921)		52,155		(70,065)		20,277		(49,788)		2,078		(591)		1,487
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	698			(754)		(56)		(15,059)		(1,289)		(16,348)		463		1,294		1,757
Net change	698			(754)		(56)		(15,059)		(1,289)		(16,348)		463		1,294		1,757
Other comprehensive income (loss)	$	206,712		$	(61,679)	$	145,033	$	(949,946)	$	274,698	$	(675,248)	$	(193,420)	$	58,714	$	(134,706)

(1)Pre-tax amounts were reported in Net (losses) gains on AFS debt securities on the Consolidated Statement of Income.

(2)Represents the net loss related to an AFS debt security that was written-off in the first quarter of 2023 and subsequently sold during the fourth quarter of 2023.

(3)Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.

(4)Pre-tax amounts related to cash flow hedges on variable rate loans and long-term borrowings, where applicable, were reported in Interest and dividend income and in Interest expense, respectively, on the Consolidated Statement of Income. In 2023, pre-tax amount also includes the terminated cash flow hedge where the forecasted cash flows were no longer probable to occur and was reported in Noninterest income on the Consolidated Statement of Income.

Regulatory Requirements and Matters

12 Months Ended

Dec. 31, 2023

Banking and Thrift, Interest [Abstract]

Regulatory Requirements and Matters

The Company and the Bank are subject to regulatory capital adequacy requirements administered by the respective federal banking agencies. The Bank is a member bank of the Federal Reserve System and is primarily regulated by the Federal Reserve and the California Department of Financial Protection and Innovation. The Company and the Bank are required to comply with the Basel III Capital Rules adopted by the federal banking agencies. As standardized approaches institutions, the Basel III Capital Rules require that banking organizations, such as the Company and the Bank, to maintain a minimum Common Equity Tier 1 (“CET1”) capital ratio of at least 4.5%, a Tier 1 capital ratio of at least 6.0%, a total capital ratio of at least 8.0%, and a Tier 1 leverage ratio of a least 4.0% to be considered adequately capitalized. Failure to meet the minimum capital requirements can result in certain mandatory actions and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. The Company and the Bank are also subject to maintaining a capital conservation buffer of 2.5% above the minimum risk-based capital ratios under the Basel III Capital Rules. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but which does not exceed the capital conservation buffer will face constraints on dividends, share repurchases and executive compensation based on the amount of the shortfall.

The Federal Deposit Insurance Corporation Improvement Act of 1991 requires that the federal regulatory agencies adopt regulations defining capital categories for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Under the agencies’ Prompt Corrective Action regulations, failure of a bank to be well capitalized results in an escalating series of adverse regulatory consequences.

Effective January 1, 2020, the Company adopted the ASU 2016-13 Financial Instruments — Credit Losses (Topic 326) Measurement of Credit Losses on Financial instrument that introduced the CECL methodology. In March 2020, the federal banking agencies issued the Interim Final Rule that provided banking organizations that adopted the CECL with the phase-in option to delay the estimated impact of CECL on regulatory capital. The Bank and the Company have elected the CECL phase-in option in 2020 and delayed the impact of CECL on regulatory capital through 2021, after which the effects are being phased in over a three-year period from January 1, 2022 through December 31, 2024.

As of both December 31, 2023 and 2022, the Company and the Bank were both categorized as well capitalized based on applicable U.S. regulatory capital ratio requirements in accordance with Basel III standardized approaches, as set forth in the table below. The Company believes that no changes in conditions or events have occurred since December 31, 2023, which would result in changes that would cause the Company or the Bank to fall below the well capitalized level. The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2023 and 2022:



	Basel III

	December 31, 2023				December 31, 2022
($ in thousands)	Amount		Ratio			Amount		Ratio		Minimum Capital Ratios		Fully Phased-in Minimum Capital Ratios (2)		Well-Capitalized Requirement

Total capital (to risk-weighted assets)
Company	$	7,919,407	14.8	%		$	7,003,299	14.0	%	8.0	%	10.5	%	10.0	%
East West Bank	$	7,363,575	13.8	%		$	6,760,612	13.5	%	8.0	%	10.5	%	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	$	7,140,778	13.3	%		$	6,347,108	12.7	%	6.0	%	8.5	%	6.0	%
East West Bank	$	6,732,946	12.6	%		$	6,252,421	12.5	%	6.0	%	8.5	%	8.0	%
CET1 capital (to risk-weighted assets)
Company (1)	$	7,140,778	13.3	%		$	6,347,108	12.7	%	4.5	%	7.0	%	N/A
East West Bank	$	6,732,946	12.6	%		$	6,252,421	12.5	%	4.5	%	7.0	%	6.5	%
Tier 1 leverage capital (to adjusted average assets)
Company (1)	$	7,140,778	10.2	%		$	6,347,108	9.8	%	4.0	%	4.0	%	N/A
East West Bank	$	6,732,946	9.6	%		$	6,252,421	9.7	%	4.0	%	4.0	%	5.0	%
Risk-weighted assets
Company	$	53,663,392	N/A			$	50,036,719	N/A		N/A		N/A		N/A
East West Bank	$	53,539,980	N/A			$	50,024,772	N/A		N/A		N/A		N/A
Adjusted quarterly average total assets
Company	$	70,406,008	N/A			$	65,221,597	N/A		N/A		N/A		N/A
East West Bank	$	70,270,449	N/A			$	65,198,267	N/A		N/A		N/A		N/A

N/A — Not applicable.

(1)The well-capitalized requirements for CET1 capital and Tier 1 leverage capital apply only to the Bank since there is no CET1 capital ratio or Tier 1 leverage capital ratio component in the definition of a well-capitalized bank holding company.

(2)Includes a 2.5% capital conservation buffer requirement above the minimum risk-based capital ratios.

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Business Segments

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business Segments

The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. These segments are defined by the type of customers served, and the related products and services provided. The segments reflect how financial information is currently evaluated by management. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain balance sheet and income statement items. The information presented is not indicative of how the segments would perform if they operated as independent entities.

The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network and digital banking platforms. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, treasury management, interest rate risk hedging and foreign exchange services.

The Commercial Banking segment primarily generates commercial loan and deposit products. Commercial loan products include CRE lending, construction financing, commercial business lending, working capital lines of credit, trade finance, letters of credit, affordable housing lending, asset-based lending, asset-backed finance, project finance and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging.

The remaining centralized functions, including the corporate treasury activities of the Company and eliminations of inter-segment amounts, have been aggregated and included in the Other segment, which provides broad administrative support to the two core segments, namely the Consumer and Business Banking and the Commercial Banking segments.

The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The internal reporting process derives operating segment results by utilizing allocation methodologies for revenues and expenses. Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Indirect costs, including technology-related costs and corporate overhead, are allocated based on a segment’s estimated usage using factors including but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Charge-offs are recorded to the segment directly associated with the respective loans charged off, and provision for credit losses is recorded to the segments based on the related loans for which allowances are evaluated. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate and indirect expenses incurred by the Other segment are allocated to the Consumer and Business Banking and the Commercial Banking segments, except certain corporate treasury-related expenses and insignificant unallocated expenses.

The corporate treasury function within the Other segment is responsible for the Company’s liquidity and interest rate management, and the internal FTP process. The FTP process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as providing a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Other segment. The FTP process transfers the corporate interest rate risk exposure to the treasury function within the Other segment, where such exposures are centrally managed. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions.

The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2023, 2022 and 2021:



($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Year Ended December 31, 2023






Net interest income before provision for credit losses	$	1,238,829	$	992,519	$	80,906	$	2,312,254
Provision for credit losses	18,422		106,578		—		125,000
Noninterest income	102,109		174,465		18,690		295,264
Noninterest expense	477,622		382,865		162,261		1,022,748

Segment income (loss) before income taxes	844,894		677,541		(62,665)		1,459,770
Segment net income	$	596,366	$	478,418	$	86,377	$	1,161,161
As of December 31, 2023

Segment assets	$	19,510,836	$	35,095,237	$	15,006,811	$	69,612,884



($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Year Ended December 31, 2022






Net interest income (loss) before provision for credit losses	$	1,170,850	$	892,386	$	(17,355)	$	2,045,881
Provision for credit losses	27,197		46,303		—		73,500
Noninterest income	110,139		179,248		9,279		298,666
Noninterest expense	397,882		314,185		147,326		859,393

Segment income (loss) before income taxes	855,910		711,146		(155,402)		1,411,654
Segment net income	$	608,120	$	507,467	$	12,496	$	1,128,083
As of December 31, 2022

Segment assets	$	17,385,804	$	33,042,785	$	13,683,561	$	64,112,150



($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Year Ended December 31, 2021






Net interest income before reversal of provision for credit losses	$	697,101	$	766,202	$	68,268	$	1,531,571
Reversal of provision for credit losses	(4,998)		(30,002)		—		(35,000)
Noninterest income	94,125		163,768		28,002		285,895
Noninterest expense	364,635		275,649		155,805		796,089

Segment income (loss) before income taxes	431,589		684,323		(59,535)		1,056,377
Segment net income	$	308,630	$	489,233	$	75,118	$	872,981
As of December 31, 2021

Segment assets	$	14,961,809	$	28,556,706	$	17,352,186	$	60,870,701

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Condensed Financial Information Disclosure [Abstract]

Parent Company Condensed Financial Statements

12 Months Ended

Dec. 31, 2023

Parent Company Condensed Financial Statements

The following tables present the Parent Company-only condensed financial statements:

CONDENSED BALANCE SHEET



	December 31,
($ in thousands)	2023		2022
ASSETS
Cash and cash equivalents due from subsidiary bank	$	445,770	$	228,531
Investments in subsidiaries:
Bank	6,542,852		5,889,775
Nonbank	13,502		13,846
Investments in tax credit investments, net	—		1,925
Other assets	120,742		8,516
TOTAL	$	7,122,866	$	6,142,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Long-term debt	$	148,249	$	147,950
Other liabilities	23,783		10,031







Stockholders’ equity	6,950,834		5,984,612
TOTAL	$	7,122,866	$	6,142,593

CONDENSED STATEMENT OF INCOME



	Year Ended December 31,
($ in thousands)	2023		2022		2021
Dividends from subsidiaries:
Bank	$	704,000	$	240,000	$	200,000
Nonbank	322		157		82
Other investment losses	(2,738)		—		—
Other income	—		—		11
Total income	701,584		240,157		200,093
Interest expense on long-term debt	10,889		5,450		2,974
Compensation and employee benefits	7,204		6,708		6,370
(Impairment recoveries) amortization of tax credit and other investments	(2,901)		(786)		425
Other expense	1,815		2,040		1,306
Total expense	17,007		13,412		11,075
Income before income tax benefit and equity in undistributed income of subsidiaries	684,577		226,745		189,018
Income tax benefit	5,844		4,269		3,005
Undistributed earnings of subsidiaries, primarily bank	470,740		897,069		680,958
Net income	$	1,161,161	$	1,128,083	$	872,981

CONDENSED STATEMENT OF CASH FLOWS



	Year Ended December 31,
($ in thousands)	2023		2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,161,161	$	1,128,083	$	872,981
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of subsidiaries, principally bank	(470,740)		(897,069)		(680,958)

Deferred income tax expense (benefit)	948		(2,193)		2,721
Net change in other assets	(4,160)		4,250		(5,685)
Net change in other liabilities	(47)		779		(81,706)
Other operating activities, net	2,443		1,333		1,877
Net cash provided by operating activities	689,605		235,183		109,230
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in investments in tax credit investments	—		(1,612)		(346)
Distributions received from equity method investees	1,594		410		436

Other investing activities, net	(96,689)		(6,188)		(1,476)
Net cash used in investing activities	(95,095)		(7,390)		(1,386)
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock:
Proceeds from issuance pursuant to various stock compensation plans and agreements	3,208		3,178		2,573
Stock tendered for payment of withholding taxes	(23,751)		(19,087)		(15,702)
Repurchase of common stock pursuant to the stock repurchase program	(82,174)		(99,990)		—
Cash dividends paid	(274,554)		(228,381)		(188,762)
Net cash used in financing activities	(377,271)		(344,280)		(201,891)
Net increase (decrease) in cash and cash equivalents	217,239		(116,487)		(94,047)
Cash and cash equivalents, beginning of year	228,531		345,018		439,065
Cash and cash equivalents, end of year	$	445,770	$	228,531	$	345,018

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Declaration of Dividend — On January 23, 2024, the Company’s Board of Directors declared first quarter 2024 cash dividends for the Company’s common stock. The common stock cash dividend of $0.55 per share was paid on February 15, 2024 to stockholders of record as of February 2, 2024. Redemption of Junior Subordinated Debt and Trust Preferred Securities Issued by East West Capital Trusts — In January 2024, the Company provided notice that it would redeem $113 million of the principal face value of junior subordinated debt and $4 million of the principal face value of trust preferred securities issued by the East West Capital Trusts. Of these amounts, $16 million was redeemed in February 2024 and the remaining $101 million is scheduled to be redeemed in March 2024. Increase in FDIC Special Assessment — In November 2023, the FDIC approved a final rule to implement a special deposit insurance assessment to recover losses to the DIF arising from the protection of uninsured depositors following the receiverships of failed institutions in the spring of 2023. The Company recorded a pre-tax $70 million special assessment charge based on the November 2023 final rule. In February 2024, the FDIC estimated the losses attributable to the protection of uninsured depositors at Silicon Valley Bank and Signature Bank to increase approximately $4.1 billion from $16.3 billion, as described in the November 2023 final rule, to $20.4 billion. As the loss estimates resulting from the failures of Silicon Valley Bank and Signature Bank may be further subject to change pending the projected and actual outcome of loss share agreements, joint ventures, and outstanding litigation, the exact amount of losses incurred will be determined when the FDIC terminates the receiverships. As of the date of this filing, the Bank cannot reasonably estimate whether the FDIC’s increased estimate of losses attributable to the protection of uninsured depositors will result in an increase in or modifications to the Bank’s special assessment charge. The FDIC plans to provide depository institutions that are subject to the special assessment with an updated estimate of each institution’s quarterly and total special assessment expense with its first quarter 2024 special assessment invoice in June 2024.

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net income	$ 1,161,161	$ 1,128,083	$ 872,981

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1