What East West Bancorp, Inc. told the SEC could break it.

68% of East West's total CRE loan portfolio is located in California (51% Southern California); downturns in California's economy or real-estate values could significantly affect loan collectability and required loan-loss allowances.

“The percentage of total CRE loans located in California was 68% and 69% as of December 31, 2025 and 2024, respectively. Changes in California's economy and real estate values could have a significant impact on the collectability of these loans and the required level of allowance for loan losses.”

A severe credit-rating downgrade could reduce East West's access to capital markets, trigger additional collateral/funding obligations that hurt liquidity, and reduce the counterparties and clients willing to transact with it.

“Severe downgrades in our credit ratings could impact our business and reduce our profitability in different ways, including a reduction in our access to capital markets, triggering additional collateral or funding obligations which could negatively affect our liquidity.”

East West's franchise is built on customers with economic/cultural ties to Asia, with branches in Hong Kong and China and a China banking subsidiary (EWCN); US-China-Singapore disputes, trade/tariff and sanctions actions could impair its foreign operations and revenue.

“A substantial number of our customers have economic and cultural ties to Asia. The Bank's international presence includes locations in Hong Kong, China and Singapore. Our presence in Asia carries certain risks, including risks relating to our ability to generate revenues from foreign operations and to leverage and conduct business”