East West Bancorp Announces Third Quarter 2008 Results; Total Delinquencies Reduced; Capital Strengthened; Expenses Reduced

East West Bancorp, Inc. (Nasdaq: EWBC), parent company of East West Bank, one of the nation’s premier community banks, today reported financial results for the third quarter 2008. East West reported a total loss of ($0.50) per share. Excluding provision for loan losses and securities impairment charges, East West reported total pretax income of $48.0 million or $0.77 per share for the third quarter of 2008.

Dominic Ng, Chairman, President and Chief Executive Officer of East West, stated, "These are extraordinary times for the financial markets. At East West, we have had a singular focus on strengthening our balance sheet during this time of unprecedented challenges and stress for the entire financial markets. During the quarter, we successfully managed down problem loans, reduced credit risk exposures, improved both liquidity and capital, and reduced core operating expenses.”

Ng concluded, "I am pleased to report that during the quarter, total loan delinquencies declined by 14% and nonperforming assets stabilized. The provision for loan losses for the third quarter of $43.0 million was down sharply from $85.0 million in second quarter. We have taken measured actions to increase the allowance for loan losses and capital levels which are both substantially higher than all our peers. We are well positioned to emerge from this most challenging economic cycle, stronger and fully able to capitalize on market opportunities.”

Third Quarter Summary

• Credit Quality Strengthened – Total loan delinquencies decreased $53 million or 14% from June 30, 2008 while total nonperforming assets to total assets remained stable at 1.71%. Additionally, total loan balance for land and construction loans decreased by $235.3 million, primarily through the payoff and paydown of loans.
• Allowance for Loan Losses Strengthened – Total allowance for loan losses to total loans increased to 2.14%, one of the highest levels for peer banks. Additionally, the total allowance for loan losses to nonaccrual loans increased to 100%. We recorded provision for loan losses of $43 million, down from $85 million in second quarter 2008 and $55 million in first quarter 2008. Total net loan charge-offs were $39.7 million for the quarter.
• Capital Strengthened – Total risk-based capital increased to 13.12% up from 13.01% at June 30, 2008. As of September 30, 2008, the total excess above well capitalized risk based capital requirement was $318 million. Tangible equity to tangible assets remained stable and totaled 7.95% as of September 30, 2008.
• Liquidity Strengthened – Increased borrowing capacity to $2.8 billion, up $1.1 billion or 65% from June 30, 2008.
• Core Operating Expenses Reduced – Noninterest expense was $48.5 million, a decrease of $7.1 million or 13% from second quarter of 2008. The efficiency ratio improved to 46.4%, down from 48.6% in second quarter 2008.
• OTTI Impairment – Recorded other than temporary impairment of investment securities of $53.6 million pretax, comprised of $47.0 million on Fannie Mae and Freddie Mac preferred stock and $6.6 million on pooled trust preferred securities. Additionally, the tax benefit from the impairment on Fannie Mae and Freddie Mac preferred stock was $18.0 million during the third quarter. An additional tax benefit of $5.7 million will be realized in the fourth quarter.
• Dividend Payout – East West also announced today its Board of Directors declared a quarterly common stock cash dividend of $0.10 per share and recently approved the payment of the dividend on the preferred stock.

Capital Strength
(In thousands, except per share amounts)
		9/30/2008									12/31/2007
Summary
Total Leverage Capital		1,137,419									991,695
Total Risk-Based Capital		1,340,899									1,166,487
Leverage Capital Ratio		9.84	%								8.73	%
Tier 1 Capital Ratio		11.12	%								8.95	%
Total Risk-Based Capital Ratio		13.12	%								10.53	%
Well Capitalized Figures
Total Well Capitalized Leverage Requirement (5%)		578,024									568,170
Total Excess Above Well Capitalized Leverage Requirement		559,394									423,525
Total Well Capitalized Tier-1 Capital Requirement (6%)		613,441									664,564
Total Excess Above Well Capitalized Tier 1 Capital Requirement		523,978									327,131
Total Well Capitalized Risk-Based Capital Requirement (10%)		1,022,401									1,107,607
Total Excess Above Well Capitalized Risk-Based Capital Requirement		318,498									58,881

East West remains strongly capitalized. As of the end of the third quarter, our tangible equity to tangible assets ratio totaled 7.95%, tier 1 capital increased to 11.12% and total risk-based capital increased to 13.12%. East West significantly exceeds well capitalized minimums under all regulatory guidelines.

Strong Liquidity

The Bank continued to strengthen its liquidity position during the third quarter of 2008. As of September 30, 2008, East West had $2.3 billion of available borrowing capacity from various sources including the Federal Home Loan Bank, Federal Reserve and Fed Fund facilities at other banks. The Bank also had $528 million in cash and Fed Funds sold as of September 30, 2008, bringing the total excess liquidity to $2.8 billion. Efforts to improve the balance sheet continued during the quarter with the loan to deposit ratio at 110% as of September 30, 2008 versus 115% at June 30, 2008 and 122% at December 31, 2007.

Managing Through the Credit Cycle

Total nonperforming assets as of September 30, 2008 totaled $200.6 million or 1.71% of total assets, compared to $193.1 million or 1.64% of total assets at June 30, 2008. The increase in the nonperforming assets ratio was primarily related to the decrease in loans outstanding as of September 30, 2008. Nonperforming assets as of September 30, 2008 included nonaccrual loans totaling $177.3 million, other real estate owned totaling $17.6 million and loans modified or restructured totaling $5.7 million.

The Company continues to focus on reducing problem and nonperforming assets and strengthening the balance sheet. During the quarter, the Company sold six REO assets with a carrying value of $18.4 million and sold twelve nonperforming loans with a carrying value of $75.2 million. The REO assets and loans sold were predominantly land and residential construction loans. Additionally, loan balances for land and construction loans decreased by $235.3 million from June 30, 2008 to September 30, 2008.

Total nonaccrual loans as of September 30, 2008 were $177.3 million, compared to $170.9 million at June 30, 2008. Included in nonaccrual loans as of September 30, 2008 are loans totaling $27.3 million which were not 90 days past due as of September 30, 2008, but that we classified as nonaccrual due to concerns surrounding collateral and future collectibility. Nonaccrual loans continue to be impacted by the deterioration in the residential construction and land portfolios, which comprised $119.1 million or 67% of total nonaccrual loans.

The $43.0 million provision for loan losses taken during the third quarter compared to $85.0 million in the second quarter and $55.0 million in the first quarter of 2008. At September 30, 2008, the allowance for loan losses increased to $177.2 million or 2.14%, compared to $168.4 million or 1.95% at June 30, 2008. The Company’s methodology for calculating the allowance for loan losses includes factors such as historical loss trends, asset classification, collateral deficiency, delinquency, credit concentrations and overall economic conditions. Based on management's evaluation and analysis of portfolio credit quality and prevailing economic conditions, we believe these reserves are adequate for losses inherent in the loan portfolio as of September 30, 2008.

For the third quarter of 2008, East West had net chargeoffs of $39.7 million, compared to $34.8 million during the second quarter of 2008. The net chargeoffs for the third quarter were comprised of $44.4 million in gross charge-offs and $4.7 million in recoveries. Of the total net charge-offs of $39.7 million for the quarter, 82% or $32.7 million of the total net charge-offs were land and residential construction loans of which 70% were located in the Inland Empire.

Third Quarter 2008 Operating Results
(In thousands, except per share amounts)
		Three Months Ended September 30, 2008
		Total Amount						Per Share Amount
Interest and dividend income		$	159,862					$	2.55
Interest expense			(73,347	)					(1.17	)
Net interest income before provision for loan losses			86,515						1.38
Noninterest income before impairment writedown on investment securities			10,017						0.16
Noninterest expense			(48,526	)					(0.77	)
Income before provision for loan losses and impairment writedown on investment securities			48,006						0.77
Provision for loan losses			(43,000	)					(0.69	)
Impairment writedown on investment securities			(53,567	)					(0.85	)
Loss before benefit for income taxes			(48,561	)					(0.77	)
Benefit for income taxes			17,355						0.27
Net loss		$	(31,206	)				$	(0.50	)

Net interest income for the third quarter totaled $86.5 million. The net interest margin for the quarter totaled 3.10%, compared to 3.33% in the prior quarter. The 23 basis point decrease in the margin was primarily comprised of a 12 basis point decrease due to the reinvestment of loan payoffs into lower yielding Treasury securities and fed funds assets, an 8 basis point decrease due to the impact of fed funds rate decreases during the year and a 3 basis point decrease due to the repricing of repurchase agreements into higher fixed rates.

Excluding the non-cash charge for impairment of investment securities, noninterest income for the third quarter totaled $10.0 million, 25% or $3.4 million less than the second quarter of 2008 and 28% or $4.0 less than the third quarter of 2007. The decrease in noninterest income from prior quarter and prior year is because there were no sales of investment securities during the third quarter. Core noninterest income, excluding the impact of gains on sales of investment securities, loans and other assets, totaled $9.8 million for the quarter, 1% higher than the prior year figure and 2% higher than the sequential quarter. Noninterest income remains healthy as branch fees, letters of credit fees and commissions have remained stable.

Noninterest expenses totaled $48.5 million for the third quarter, $7.1 million or 13% less than prior quarter. The decrease from the prior quarter was largely due to lower levels of staffing and a reduction in related benefits and incentive program expenses which were fully realized in the third quarter. As noted in last quarter’s call, we anticipated noninterest expenses to be lower in second half of the year and expect fourth quarter expense levels to trend positively as expense management continues. The efficiency ratio improved to 46.4% in third quarter versus 48.6% in second quarter of 2008.

Management Guidance

Management maintains the guidance previously provided for the fourth quarter of 2008 and projects that fully diluted earnings will range from $0.11 to $0.13 per share.

Management projects net interest margin will approximate 3.05% for the fourth quarter of 2008, resulting in a full year net interest margin of approximately 3.28%. The decrease in the estimated margin for the fourth quarter 2008 is largely due to the recent fed funds rate decrease of 50 basis points and the assumption that there will be another 50 basis point decrease in the fourth quarter of 2008. Additionally, management currently estimates that provision for loan losses for the fourth quarter will approximate $35.0 million.

Investment Securities

During the quarter, we recorded other than temporary impairment ("OTTI”), on investment securities of $53.6 million, pretax. Of this amount, $47.0 million was for Fannie Mae and Freddie Mac preferred stock and $6.6 million was for pooled trust preferred securities.

The carrying value of the Fannie Mae and Freddie Mac preferred stock as of September 30, 2008 was reduced to $3.3 million as a result of the impairment charge, 6% of the original par value. The tax benefit from the impairment of the preferred stock securities in third quarter was limited due to the accounting treatment of the charge as a capital loss in accordance with the tax laws in existence as of September 30, 2008. With the October 3, 2008 passage of the Emergency Economic Stabilization Act into law, banks may recognize other than temporary impairment charges on Fannie Mae and Freddie Mac preferred stock as ordinary losses. The Company will recognize an additional $5.7 million or $0.09 per share benefit in the fourth quarter of 2008 as a result of this change in law.

The Company recognized a pretax charge of $6.6 million for five pooled trust preferred securities deemed to be other than temporarily impaired. As of September 30, 2008, the market for these securities is inactive and this illiquidity has adversely impacted the fair values. The Company has the ability and intent to hold these securities until all principal and interest is fully recovered. The fair value of the pooled trust preferred securities is $61.1 million, 3% of total $2.0 billion of investment securities and less than 1% of $11.7 billion in total assets as of September 30, 2008.

Deposit Summary

During the third quarter, deposits were stable with total deposits at September 30, 2008 of $7.5 billion, a 4% or $257.4 million increase over total deposits of $7.3 billion at December 31, 2007 and reflecting no change from June 30, 2008. Average total deposits for the third quarter were $7.5 billion, reflecting no change from the second quarter of 2008. The average cost of deposits for the third quarter of 2008 was 2.17%, a 118 basis point decrease from the year ago quarter and a 16 basis point decrease from the previous quarter.

About East West

East West Bancorp is a publicly owned company, with $11.7 billion in assets, whose stock is traded on the Nasdaq Global Select Market under the symbol "EWBC”. The company’s wholly owned subsidiary, East West Bank, is FDIC insured and the second largest independent commercial bank headquartered in Southern California with 72 branch locations. East West Bank serves the community with 70 branch locations across Southern and Northern California and a branch location in Houston, Texas. East West Bank has three international locations in Greater China, including a full-service branch in Hong Kong and representative offices in Beijing and Shanghai. For more information on East West Bancorp, visit the company’s website at www.eastwestbank.com.

Forward-Looking Statements

This release may contain forward-looking statements, which are included in accordance with the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and accordingly, the cautionary statements contained in East West Bancorp’s Annual Report on Form 10-K for the year ended Dec. 31, 2007 (See Item I -- Business, and Item 7 -- Management’s Discussion and Analysis of Consolidated Financial Condition and Results of Operations), and other filings with the Securities and Exchange Commission are incorporated herein by reference. These factors include, but are not limited to: the effect of interest rate and currency exchange fluctuations; competition in the financial services market for both deposits and loans; EWBC’s ability to efficiently incorporate acquisitions into its operations; the ability of borrowers to perform as required under the terms of their loans; effect of additional provisions for loan losses; effect of any goodwill impairment, the ability of EWBC and its subsidiaries to increase its customer base; the effect of regulatory and legislative action, including California tax legislation and an announcement by the state’s Franchise Tax Board regarding the taxation of Registered Investment Companies; and regional and general economic conditions. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Such forward-looking statements speak only as of the date of this release. East West expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in the Bank’s expectations of results or any change in event.

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
			September 30, 2008				December 31, 2007				% Change
Assets
	Cash and cash equivalents		$	527,474			$	160,347			229
	Short-term investments			495				-			NA
	Securities purchased under resale agreements			50,000				150,000			(67	)
	Investment securities available-for-sale			2,047,244				1,887,136			8
	Loans receivable (net of allowance for loan losses of $177,155 and $88,407)			8,111,231				8,750,921			(7	)
	Other real estate owned, net			17,607				1,500			1,074
	Premiums on deposits acquired, net			22,314				28,459			(22	)
	Goodwill			337,331				335,366			1
	Other assets			608,620				538,483			13
	Total assets		$	11,722,316			$	11,852,212			(1	)
Liabilities and Stockholders' Equity
	Deposits		$	7,536,349			$	7,278,914			4
	Federal funds purchased			30,443				222,275			(86	)
	Federal Home Loan Bank advances			1,538,350				1,808,419			(15	)
	Securities sold under repurchase agreements			999,467				1,001,955			(0	)
	Notes payable			12,150				16,242			(25	)
	Long-term debt			235,570				235,570			0
	Accrued expenses and other liabilities			105,106				117,014			(10	)
	Total liabilities			10,457,435				10,680,389			(2	)
	Stockholders' equity			1,264,881				1,171,823			8
	Total liabilities and stockholders' equity		$	11,722,316			$	11,852,212			(1	)
	Book value per share		$	16.54		(1)	$	18.56			(11	)
	Number of shares at period end			63,623				63,137			1
	Ending Balances
			September 30, 2008				December 31, 2007				% Change
Loans receivable
	Real estate - single family		$	488,026			$	433,337			13
	Real estate - multifamily			689,806				690,941			(0	)
	Real estate - commercial			3,382,298				3,502,213			(3	)
	Real estate - land			587,515				681,260			(14	)
	Real estate - construction			1,356,668				1,547,082			(12	)
	Commercial			1,190,848				1,314,068			(9	)
	Trade finance			389,288				491,690			(21	)
	Consumer			204,984				184,518			11
	Total gross loans receivable			8,289,433				8,845,109			(6	)
Unearned fees, premiums and discounts				(1,047	)			(5,781	)		(82	)
Allowance for loan losses				(177,155	)			(88,407	)		100
	Net loans receivable		$	8,111,231			$	8,750,921			(7	)
Deposits
	Noninterest-bearing demand		$	1,393,480			$	1,431,730			(3	)
	Interest-bearing checking			374,187				472,943			(21	)
	Money market			1,014,849				1,090,949			(7	)
	Savings			425,966				477,779			(11	)
	Total core deposits			3,208,482				3,473,401			(8	)
	Time deposits less than $100,000			1,295,585				926,459			40
	Time deposits $100,000 or greater			3,032,282				2,879,054			5
	Total time deposits			4,327,867				3,805,513			14
	Total deposits		$	7,536,349			$	7,278,914			4

(1)		Book value per share is calculated based on the assumed conversion of 197,400 shares of convertible preferred stock into 12,829,855 shares of the Company's common stock.

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
			Three Months Ended September 30,								%
			2008				2007				Change
	Interest and dividend income		$	159,862			$	198,768			(20	)
	Interest expense			(73,347	)			(94,914	)		(23	)
	Net interest income before provision for loan losses			86,515				103,854			(17	)
	Provision for loan losses			(43,000	)			(3,000	)		1,333
	Net interest income after provision for loan losses			43,515				100,854			(57	)
	Noninterest income (loss)			(43,550	)			13,588			(421	)
	Noninterest expense			(48,526	)			(46,738	)		4
	(Loss) income before provision for income taxes			(48,561	)			67,704			(172	)
	Benefit (provision) for income taxes			17,355				(26,368	)		(166	)
	Net (loss) income		$	(31,206	)		$	41,336			(175	)
	Preferred stock dividend			(4,089	)			-
	Net (loss) available to common stockholders		$	(35,295	)		$	41,336
	Net (loss) income available to common stockholders per share, basic		$	(0.56	)		$	0.68			(182	)
	Net (loss) income available to common stockholders per share, diluted		$	(0.56	)		$	0.67			(184	)
	Shares used to compute per share net (loss) income:
	- Basic			62,675				61,232			2
	- Diluted			62,675				62,088			1
			Three Months Ended September 30,								%
			2008				2007				Change
Noninterest income:
	Impairment writedown on investment securities		$	(53,567	)		$	(405	)		13,126
	Branch fees			4,285				3,836			12
	Letters of credit fees and commissions			2,319				2,702			(14	)
	Ancillary loan fees			1,783				1,397			28
	Net gain on sale of loans			144				272			(47	)
	Net gain on disposal of fixed assets			44				1,261			(97	)
	Net gain on sale of investment securities available-for-sale			-				2,772			(100	)
	Other operating income			1,442				1,753			(18	)
	Total noninterest income (loss)		$	(43,550	)		$	13,588			(421	)
Noninterest expense:
	Compensation and employee benefits			17,520				22,081			(21	)
	Occupancy and equipment expense			6,817				6,656			2
	Consulting and loan review expense			2,454				992			147
	Other real estate owned expense			2,123				-			NA
	Amortization of investments in affordable housing partnerships			1,886				1,017			85
	Deposit insurance premiums and regulatory assessments			1,678				350			379
	Amortization and impairment writedowns of premiums on deposits acquired			1,581				1,767			(11	)
	Data processing			1,055				1,351			(22	)
	Legal expense			855				653			31
	Other operating expense			12,557				11,871			6
	Total noninterest expense		$	48,526			$	46,738			4

EAST WEST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
			Nine Months Ended September 30,								%
			2008				2007				Change
	Interest and dividend income		$	514,951			$	572,159			(10	)
	Interest expense			(236,641	)			(270,773	)		(13	)
	Net interest income before provision for loan losses			278,310				301,386			(8	)
	Provision for loan losses			(183,000	)			(3,000	)		6,000
	Net interest income after provision for loan losses			95,310				298,386			(68	)
	Noninterest income (loss)			(24,199	)			35,541			(168	)
	Noninterest expense			(157,071	)			(130,975	)		20
	(Loss) income before provision for income taxes			(85,960	)			202,952			(142	)
	Benefit (provision) for income taxes			33,911				(79,030	)		(143	)
	Net (loss) income		$	(52,049	)		$	123,922			(142	)
	Preferred stock dividend			(4,089	)			-
	Net (loss) available to common stockholders		$	(56,138	)		$	123,922
	Net (loss) income available to common stockholders per share, basic		$	(0.90	)		$	2.04			(144	)
	Net (loss) income available to common stockholders per share, diluted		$	(0.90	)		$	2.01			(145	)
	Shares used to compute per share net (loss) income:
	- Basic			62,586				60,754			3
	- Diluted			62,586				61,712			1
			Nine Months Ended September 30,								%
			2008				2007				Change
Noninterest income:
	Impairment writedown on investment securities		$	(63,512	)		$	(405	)		15,582
	Branch fees			12,725				10,667			19
	Net gain on sale of investment securities available-for-sale			7,767				5,218			49
	Letters of credit fees and commissions			7,472				7,688			(3	)
	Ancillary loan fees			3,908				4,164			(6	)
	Net gain on sale of loans			2,272				1,296			75
	Net gain on disposal of fixed assets			221				1,573			(86	)
	Other operating income			4,948				5,340			(7	)
	Total noninterest income (loss)		$	(24,199	)		$	35,541			(168	)
Noninterest expense:
	Compensation and employee benefits			66,578				63,511			5
	Occupancy and equipment expense			20,364				18,583			10
	Amortization and impairment writedowns of premiums on deposits acquired			6,145				4,824			27
	Consulting and loan review expense			6,188				2,337			165
	Amortization of investments in affordable housing partnerships			5,521				3,521			57
	Deposit insurance premiums and regulatory assessments			5,191				1,021			408
	Legal expense			3,890				1,258			209
	Other real estate owned expense (income)			3,520				(1,247	)		(382	)
	Data processing			3,386				3,403			(0	)
	Other operating expense			36,288				33,764			7
	Total noninterest expense		$	157,071			$	130,975			20

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
	Average Balances		Three Months Ended September 30,						%
			2008			2007			Change
Loans receivable
	Real estate - single family		$	474,983		$	306,452		55
	Real estate - multifamily			718,633			1,000,956		(28	)
	Real estate - commercial			3,411,068			3,328,041		2
	Real estate - land			628,100			632,409		(1	)
	Real estate - construction			1,464,801			1,441,298		2
	Commercial			1,144,602			1,148,493		(0	)
	Trade finance			411,310			414,658		(1	)
	Consumer			198,020			160,961		23
	Total loans receivable			8,451,517			8,433,268		0
Investment securities available-for-sale				2,126,894			1,731,436		23
Earning assets				11,083,415			10,461,572		6
Total assets				11,709,144			11,197,229		5
Deposits
	Noninterest-bearing demand		$	1,375,103		$	1,337,218		3
	Interest-bearing checking			399,866			404,418		(1	)
	Money market			1,046,721			1,287,573		(19	)
	Savings			449,687			424,039		6
	Total core deposits			3,271,377			3,453,248		(5	)
	Time deposits less than $100,000			1,151,876			931,961		24
	Time deposits $100,000 or greater			3,045,325			2,961,353		3
	Total time deposits			4,197,201			3,893,314		8
	Total deposits			7,468,578			7,346,562		2
Interest-bearing liabilities				8,958,723			8,621,171		4
Stockholders' equity				1,240,509			1,088,792		14

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
	Average Balances		Nine Months Ended September 30,						%
			2008			2007			Change
Loans receivable
	Real estate - single family		$	459,112		$	337,419		36
	Real estate - multifamily			716,076			1,194,459		(40	)
	Real estate - commercial			3,508,629			3,288,156		7
	Real estate - land			649,618			527,532		23
	Real estate - construction			1,538,202			1,317,528		17
	Commercial			1,223,128			1,067,855		15
	Trade finance			441,586			346,369		27
	Consumer			189,245			157,630		20
	Total loans receivable			8,725,596			8,236,948		6
Investment securities available-for-sale				1,986,124			1,672,335		19
Earning assets				11,086,627			10,197,908		9
Total assets				11,755,498			10,871,224		8
Deposits
	Noninterest-bearing demand		$	1,379,975		$	1,283,699		7
	Interest-bearing checking			416,636			404,328		3
	Money market			1,081,520			1,310,525		(17	)
	Savings			463,172			379,831		22
	Total core deposits			3,341,303			3,378,383		(1	)
	Time deposits less than $100,000			1,018,609			965,545		5
	Time deposits $100,000 or greater			3,073,775			2,862,437		7
	Total time deposits			4,092,384			3,827,982		7
	Total deposits			7,433,687			7,206,365		3
Interest-bearing liabilities				9,027,831			8,394,732		8
Stockholders' equity				1,206,417			1,051,416		15

EAST WEST BANCORP, INC.
SELECTED FINANCIAL INFORMATION
(In thousands)
(unaudited)
	Selected Ratios		Three Months Ended September 30,								%
			2008				2007				Change
For The Period
	Return on average assets			-1.07	%			1.48	%		(172	)
	Return on average common equity			-10.06	%			15.19	%		(166	)
	Interest rate spread (3)			2.48	%			3.17	%		(22	)
	Net interest margin (3)			3.10	%			3.95	%		(21	)
	Yield on earning assets (3)			5.73	%			7.54	%		(24	)
	Cost of deposits			2.17	%			3.35	%		(35	)
	Cost of funds			2.82	%			3.78	%		(26	)
	Noninterest expense/average assets (1)			1.53	%			1.57	%		(3	)
	Efficiency ratio (1)			46.40	%			37.30	%		24
	Net chargeoffs to average loans (2)			1.88	%			0.04	%		4,544
	Gross loan chargeoffs		$	44,355			$	909			4,780
	Loan recoveries		$	(4,660	)		$	(56	)		8,221
	Net loan chargeoffs		$	39,695			$	853			4,554
	Selected Ratios		Nine Months Ended September 30,								%
			2008				2007				Change
For The Period
	Return on average assets			-0.59	%			1.52	%		(139	)
	Return on average common equity			-5.75	%			15.71	%		(137	)
	Interest rate spread (3)			2.71	%			3.20	%		(15	)
	Net interest margin (3)			3.35	%			3.96	%		(15	)
	Yield on earning assets (3)			6.20	%			7.51	%		(17	)
	Cost of deposits			2.45	%			3.38	%		(28	)
	Cost of funds			3.03	%			3.74	%		(19	)
	Noninterest expense/average assets (1)			1.64	%			1.50	%		9
	Efficiency ratio (1)			45.51	%			36.35	%		25
	Net chargeoffs to average loans (2)			1.53	%			0.03	%		5,851
	Gross loan chargeoffs		$	105,147			$	1,964			5,254
	Loan recoveries		$	(5,226	)		$	(379	)		1,279
	Net loan chargeoffs		$	99,921			$	1,585			6,204
Period End
	Tier 1 risk-based capital ratio			11.12	%			8.98	%		24
	Total risk-based capital ratio			13.12	%			10.57	%		24
	Tier 1 leverage capital ratio			9.84	%			8.88	%		11
	Nonperforming assets to total assets			1.71	%			0.37	%		359
	Nonaccrual loans to total loans			2.14	%			0.50	%		328
	Allowance for loan losses to total loans			2.14	%			0.99	%		116
	Allowance for loan losses and unfunded loan commitments to total loans			2.21	%			1.12	%		97
	Allowance for loan losses to nonaccrual loans			99.92	%			197.64	%		(49	)

(1)		Excludes the amortization of intangibles, amortization and impairment writedowns of premiums on deposits acquired, impairment writedown on goodwill and investment securities, and amortization of investments in affordable housing partnerships.
(2)		Annualized.
(3)		Yields on certain securities have been adjusted upward to a "fully taxable equivalent" basis in order to reflect the effect of income which is exempt from federal income taxation at the current statutory tax rate.

EAST WEST BANCORP, INC.
QUARTER TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
		Three Months Ended September 30,
		2008										2007
		Average Volume				Interest			Yield (1)			Average Volume				Interest			Yield (1)
ASSETS
Interest-earning assets:
Short-term investments (2)		$	340,723			$	1,957		2.28	%		$	27,154			$	347		5.07	%
Securities purchased under resale agreements (term)			50,000				1,277		10.13	%			188,043				4,013		8.47	%
Investment securities
Taxable			2,077,097				22,685		4.33	%			1,698,017				25,759		6.02	%
Tax-exempt (3)			49,797				630		5.06	%			33,419				657		7.86	%
Loans receivable			8,451,517				131,682		6.18	%			8,433,268				167,066		7.86	%
Federal Home Loan Bank and Federal Reserve
Bank stocks			114,281				1,803		6.26	%			81,671				1,107		5.38	%
Total interest-earning assets			11,083,415				160,034		5.73	%			10,461,572				198,949		7.54	%
Noninterest-earning assets:
Cash and due from banks			136,018										155,699
Allowance for loan losses			(171,025	)									(80,321	)
Other assets			660,736										660,279
Total assets		$	11,709,144									$	11,197,229
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Checking accounts			399,866				659		0.65	%			404,418				1,615		1.58	%
Money market accounts			1,046,721				5,664		2.15	%			1,287,573				13,322		4.10	%
Savings deposits			449,687				929		0.82	%			424,039				1,198		1.12	%
Time deposits less than $100,000			1,151,876				7,932		2.73	%			931,961				9,688		4.12	%
Time deposits $100,000 or greater			3,045,325				25,573		3.33	%			2,961,353				36,235		4.85	%
Federal funds purchased			87,606				430		1.95	%			172,064				2,317		5.34	%
Federal Home Loan Bank advances			1,541,799				17,140		4.41	%			1,257,199				16,175		5.10	%
Securities sold under repurchase agreements			1,000,273				12,063		4.78	%			962,458				10,263		4.23	%
Long-term debt			235,570				2,957		4.98	%			220,106				4,101		7.39	%
Total interest-bearing liabilities			8,958,723				73,347		3.25	%			8,621,171				94,914		4.37	%
Noninterest-bearing liabilities:
Demand deposits			1,375,103										1,337,218
Other liabilities			134,809										150,048
Stockholders' equity			1,240,509										1,088,792
Total liabilities and stockholders' equity		$	11,709,144									$	11,197,229
Interest rate spread									2.48	%									3.17	%
Net interest income and net yield on interest-earning assets (3)						$	86,687		3.10	%						$	104,035		3.95	%

(1)		Annualized
(2)		Includes short-term securities purchased under resale agreements.
(3)		Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

EAST WEST BANCORP, INC.
YEAR TO DATE AVERAGE BALANCES, YIELDS AND RATES PAID
(In thousands)
(unaudited)
		Nine Months Ended September 30,
		2008										2007
		Average Volume				Interest			Yield (1)			Average Volume				Interest			Yield (1)
ASSETS
Interest-earning assets:
Short-term investments (2)		$	204,323			$	3,546		2.31	%		$	14,756			$	564		5.11	%
Securities purchased under resale agreements (term)			54,745				5,094		12.40	%			192,857				11,742		8.14	%
Investment securities
Taxable			1,927,526				73,558		5.08	%			1,649,094				71,476		5.79	%
Tax-exempt (3)			58,598				3,256		7.41	%			23,241				1,417		8.13	%
Loans receivable			8,725,596				425,113		6.49	%			8,236,948				484,073		7.86	%
Federal Home Loan Bank and Federal Reserve
Bank stocks			115,839				5,275		6.07	%			81,012				3,275		5.40	%
Total interest-earning assets			11,086,627				515,842		6.20	%			10,197,908				572,547		7.51	%
Noninterest-earning assets:
Cash and due from banks			136,708										149,007
Allowance for loan losses			(132,548	)									(78,212	)
Other assets			664,711										602,521
Total assets		$	11,755,498									$	10,871,224
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Checking accounts			416,636				2,707		0.87	%			404,328				4,954		1.64	%
Money market accounts			1,081,520				20,246		2.49	%			1,310,525				40,879		4.17	%
Savings deposits			463,172				3,341		0.96	%			379,831				2,411		0.85	%
Time deposits less than $100,000			1,018,609				24,333		3.18	%			965,545				28,569		3.96	%
Time deposits $100,000 or greater			3,073,775				85,919		3.72	%			2,862,437				105,331		4.92	%
Federal funds purchased			115,370				2,176		2.51	%			153,422				6,164		5.37	%
Federal Home Loan Bank advances			1,622,429				54,363		4.46	%			1,144,657				43,555		5.09	%
Securities sold under repurchase agreements			1,000,750				33,881		4.51	%			970,780				27,675		3.81	%
Long-term debt			235,570				9,675		5.47	%			203,207				11,235		7.39	%
Total interest-bearing liabilities			9,027,831				236,641		3.49	%			8,394,732				270,773		4.31	%
Noninterest-bearing liabilities:
Demand deposits			1,379,975										1,283,699
Other liabilities			141,275										141,377
Stockholders' equity			1,206,417										1,051,416
Total liabilities and stockholders' equity		$	11,755,498									$	10,871,224
Interest rate spread									2.71	%									3.20	%
Net interest income and net yield on interest-earning assets (3)						$	279,201		3.35	%						$	301,774		3.96	%

(1)		Annualized
(2)		Includes short-term securities purchased under resale agreements.
(3)		Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.

EAST WEST BANCORP, INC.
QUARTERLY ALLOWANCE FOR LOAN LOSSES RECAP
(In thousands)
(unaudited)
		Three Months Ended
		September 30, 2008					June 30, 2008					March 31, 2008
LOANS
Allowance balance, beginning of period		$	168,413				$	117,120				$	88,407
Allowance for unfunded loan commitments and letters of credit			5,437					1,136					(904	)
Provision for loan losses			43,000					85,000					55,000
Net Charge-offs:
Real estate - single family			1,022					632					75
Real estate - multifamily			1,006					436					-
Real estate - commercial			663					(3	)				-
Real estate - land			19,128					16,337					5,078
Real estate - residential construction			13,557					15,726					8,565
Real estate - commercial construction			-					-					-
Commercial			3,474					640					11,636
Trade finance			750					922					-
Consumer			95					153					29
Total net charge-offs			39,695					34,843					25,383
Allowance balance, end of period		$	177,155				$	168,413				$	117,120
UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT:
Allowance balance, beginning of period		$	11,153				$	12,289				$	11,385
Provision for unfunded loan commitments and letters of credit			(5,437	)				(1,136	)				904
Allowance balance, end of period		$	5,716				$	11,153				$	12,289
GRAND TOTAL, END OF PERIOD		$	182,871				$	179,566				$	129,409
Allowance for loan losses to total gross loans at end of period			2.14	%				1.95	%				1.32	%
Allowance for loan losses and unfunded loan commitments to total gross loans at end of period			2.21	%				2.07	%				1.46	%
Allowance to nonaccrual loans at end of period			99.92	%				98.59	%				202.41	%
Nonaccrual loans to total loans			2.14	%				1.97	%				0.65	%

EAST WEST BANCORP, INC.
TOTAL NON-PERFORMING ASSETS AS OF SEPTEMBER 30, 2008
(in thousands)
(unaudited)
		Total Nonaccrual Loans
		90+ Days Delinquent			Under 90+ Days Delinquent			Total Nonaccrual Loans			Modified or Restructured Loans			REO Assets			Total Non-Performing Assets
Loan Type
Real estate - single family		$	5,486		$	-		$	5,486		$	1,405		$	2,715		$	9,606
Real estate - multifamily			9,758			-			9,758			-			502			10,260
Real estate - commercial			14,353			4,511			18,864			1,763			1,043			21,670
Real estate - land			52,926			11,882			64,808			-			4,370			69,178
Real estate - residential construction			44,526			9,783			54,309			-			8,461			62,770
Real estate - commercial construction			13,073			-			13,073			-			-			13,073
Commercial			8,972			973			9,945			2,496			424			12,865
Trade Finance			-			-			-			-			-			-
Consumer			866			194			1,060			-			92			1,152
Total		$	149,960		$	27,343		$	177,303		$	5,664		$	17,607		$	200,574
EAST WEST BANCORP, INC.
TOTAL NON-PERFORMING ASSETS AS OF JUNE 30, 2008
(in thousands)
(unaudited)
		Total Nonaccrual Loans
		90+ Days Delinquent			Under 90+ Days Delinquent			Total Nonaccrual Loans			Modified or Restructured Loans			REO Assets			Total Non-Performing Assets
Loan Type
Real estate - single family		$	7,247		$	-		$	7,247		$	-		$	1,635		$	8,882
Real estate - multifamily			7,010			-			7,010			-			4,658			11,668
Real estate - commercial			18,326			-			18,326			1,699			-			20,025
Real estate - land			46,773			24,829			71,602			-			1,000			72,602
Real estate - residential construction			38,035			15,572			53,607			-			10,105			63,712
Real estate - commercial construction			4,283			-			4,283			-			-			4,283
Commercial			7,722			-			7,722			2,993			-			10,715
Trade Finance			621			-			621			-			-			621
Consumer			476			-			476			-			92			568
Total		$	130,493		$	40,401		$	170,894		$	4,692		$	17,490		$	193,076

EAST WEST BANCORP, INC.
DELINQUENT LOANS BY LOAN CATEGORIES AS OF SEPTEMBER 30, 2008
(in thousands)
(unaudited)
Loan Type		30-59 Days Delinquent			60-89 Days Delinquent			90+ Days Delinquent			Total Delinquent Loans
Real estate - single family		$	8,282		$	5,536		$	5,486		$	19,304
Real estate - multifamily			9,415			2,939			9,758			22,112
Real estate - commercial			21,434			8,608			14,353			44,395
Real estate - land			5,216			2,154			52,926			60,296
Real estate - residential construction			37,947			14,143			44,526			96,616
Real estate - commercial construction			14,839			18,450			13,073			46,362
Commercial			12,726			798			8,972			22,496
Trade finance			-			-			-			-
Consumer			1,818			1,459			866			4,143
Total Delinquent Loans		$	111,677		$	54,087		$	149,960		$	315,724
EAST WEST BANCORP, INC.
DELINQUENT LOANS BY LOAN CATEGORIES AS OF JUNE 30, 2008
(in thousands)
(unaudited)
Loan Type		30-59 Days Delinquent			60-89 Days Delinquent			90+ Days Delinquent			Total Delinquent Loans
Real estate - single family		$	11,242		$	2,063		$	7,247		$	20,552
Real estate - multifamily			6,112			1,042			7,010			14,164
Real estate - commercial			23,110			6,274			18,326			47,710
Real estate - land			25,825			11,207			46,773			83,805
Real estate - residential construction			69,997			23,526			38,035			131,558
Real estate - commercial construction			13,073			18,042			4,283			35,398
Commercial			11,993			3,434			7,722			23,149
Trade finance			10,030			488			621			11,139
Consumer			476			274			476			1,226
Total Delinquent Loans		$	171,858		$	66,350		$	130,493		$	368,701