San Marino, CA - January 25, 2006 - 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 fourth quarter and full year 2005. Diluted earnings per share for the fourth quarter increased 29% to a record $0.54, while diluted earnings per share for the full year grew by 32%, to a record $1.97.

Highlights for the Fourth Quarter

Record net income of $30.8 million, up 36% from fourth quarter 2004

Record net interest income of $81.4 million, up 37% from fourth quarter 2004

Net interest margin of 4.20%

Return on equity of 17.36%

Total nonperforming assets were 0.36% of total assets

Efficiency ratio of 37.97%

Definitive agreement signed for the Standard Bank acquisition

Highlights for the Full Year 2005

Net income of $108.4 million, exceeding the $100 million mark for the first time

Net interest income of $280.1 million, up 41% from 2004

Net interest margin of 4.21%

Return on equity of 18.27%

Gross loans increased to a record $6.8 billion, up 32% from 2004

Total deposits increased to a record $6.3 billion, up 38% from 2004

Successful close of the United National Bank ("UNB") acquisition

Financial Summary

Fourth quarter net income was a record $30.8 million, up 36% from $22.6 million reported in the prior year period. Diluted earnings per share for the fourth quarter rose to a record $0.54, up 29% from $0.42 in the prior year period. Return on average equity for the quarter totaled 17.36%, while return on average assets for the quarter was 1.52%. The effective tax rate for the quarter equaled 37.24%, compared to 36.69% for the prior year period. Pretax income for the fourth quarter of 2005 totaled $49.1 million, a 37% or $13.3 million increase over the year ago figure. The increase in earnings in the fourth quarter of 2005 was largely a result of higher net interest income.

For the full year 2005, net income climbed 39% to $108.4 million. Diluted earnings per share for the full year increased 32% to $1.97 from $1.49 in 2004. Return on average equity for the year equaled 18.27%, while return on average assets for the year equaled 1.55%. The effective tax rate for the full year 2005 was 36.38%, compared to 35.70% for 2004. Pretax income for the full year 2005 totaled $170.4 million, a 40% or $49.0 million increase over the year ago figure.

"We are pleased to report record earnings for the ninth consecutive year, achieving record net interest income, net earnings and earnings per share," stated Dominic Ng, Chairman, President and Chief Executive Officer of East West. "Since our initial public offering, our net income has increased six-fold, from $18.0 million in 1998 to $108.4 million in 2005. East West's excellent financial performance for both the fourth quarter and full year 2005 was driven by our continuing loan growth and strong results in all areas of our business. We are pleased with our accomplishments in 2005 and look forward to future challenges and opportunities. Looking ahead to 2006, we will continue to position the Bank for solid long-term growth and strong shareholder returns."

"East West stands firm in our commitment to investing in our community. We were very excited to have recently announced our pledge of $1.0 million to the Bowers Museum of Cultural Art in Orange County, for the creation of the East West Bank Asian Gallery. The East West gallery is planned as part of the museum's 30,000 square-foot North Wing expansion project and will provide the Bank with a rare long-term branding opportunity in the region. East West is also pleased to be the title sponsor of 'Don Felder and Friends Rock Cerritos for Katrina,' a benefit concert to raise funds for the victims of Hurricane Katrina," continued Ng.

"Adding to our achievements in the fourth quarter of 2005 was the successful close of the United National Bank acquisition. The integration of UNB during the fourth quarter proved to be seamless and we anticipate that the integration of Standard Bank will also proceed smoothly. We look forward to adding the talented staff from Standard Bank to our team and bringing more products and convenience to our new customers," continued Ng.

Management Guidance

The Company provided initial guidance for 2006, which excludes the impact of the acquisition of Standard Bank. Management estimates that fully diluted earnings per share for the full year of 2006 will range from $2.23 to $2.27.

The EPS guidance is based on the following assumptions:

Annual loan growth of 15% to 17%

Annual deposit growth of 14% to 16%

Annual increase in noninterest expense of 20% to 25%

Operating efficiency ratio between 36% and 38%

An effective tax rate between 37% and 38%

A stable or marginally increasing interest rate environment and a net interest margin between 4.15% and 4.25%

Implementation of expensing stock options in accordance with FASB 123R, impacting EPS by $0.01 per quarter

Ng remarked on the Bank's forecast for 2006, "We currently project full year EPS growth of approximately 14%, or an increase of $0.28 cents per share from 2005. This forecast for 2006 is based on the encouraging economic growth in our region and the continuing loan demand. We anticipate that the acquisition of Standard Bank will add an additional $0.02 to 2006 earnings," concluded Ng.

Balance Sheet Summary

At December 31, 2005, total assets were $8.3 billion, a 37% increase above total assets of $6.0 billion at December 31, 2004. The growth in assets is largely a result of organic growth in our loan portfolio, as well as the impact of the UNB acquisition. Gross loans at December 31, 2005 totaled $6.8 billion, up 32% or $1.7 billion from year-end 2004. Organic loan growth for the year was an impressive $1.2 billion, or an increase of 24%, excluding the impact of the UNB acquisition, loan securitizations and loan sales. Growth in commercial real estate, multifamily and single family loans added the largest dollar impact to our organic growth, although all loan sectors grew at a double digit rate during the year. For the fourth quarter of 2005, loan growth was 16% annualized, excluding the impact of a $92.3 million multifamily loan securitization in late December.

Average earning assets for the fourth quarter of 2005 equaled $7.7 billion, 41% higher than the fourth quarter of 2004. The growth in average earning assets was driven by a 38% or $1.9 billion increase in average loans to $6.8 billion. The yield on average earning assets for the quarter was 6.54%, an increase of 94 basis points from the year ago quarter and an increase of 27 basis points from the previous quarter. The yield on average loans receivable for the quarter was 6.84%, an increase of 100 basis points from the year ago quarter and an increase of 28 basis points from the previous quarter. The rise in the yield on average earning assets was attributable to increases in market interest rates and the corresponding repricing of our loan portfolio.

Total deposits at December 31, 2005 were $6.3 billion, a 38% increase over total deposits of $4.5 billion at December 31, 2004. Organic deposit growth for the year was $871.0 million, or a notable 19%, excluding the impact of the UNB acquisition. Core deposits at December 31, 2005 totaled $3.1 billion or a 36% increase over year-end 2004. Excluding the impact of the UNB acquisition, organic core deposit growth for the year was $474.7 million, or 21%. Deposit growth was 8% annualized for the fourth quarter of 2005.

Average total deposits for the fourth quarter grew to $6.0 billion, 41% above the figure for the prior year period, while average core deposits totaled $3.0 billion, 34% greater than a year ago. The growth in average deposits is a result of substantial increases in average time deposits of 48% or $997.9 million, money market deposits of 71% or $367.6 million and noninterest bearing demand deposits of 27% or $277.2 million.

The average cost of deposits for the fourth quarter of 2005 was 2.14%, a 99 basis point increase from the year ago quarter and a 25 basis point increase from the previous quarter. The average cost of funds for the fourth quarter equaled 2.45%, a 111 basis point increase from the prior year and a 30 basis point increase from the prior quarter. The increase in the cost of deposits for both the year to date and quarter to date periods was attributable to heightened deposit competition and the resulting higher market interest rates. East West entered into $325.0 million in long-term repurchase agreements in the latter half of 2005, $125.0 million in the fourth quarter and $200.0 million in the previous quarter. These repurchase agreements have enabled us to lower our reliance on FHLB advances and provide us with long-term borrowings at a lower cost.

Fourth Quarter Operating Results

Net interest income for the fourth quarter increased to a record $81.4 million, 37% or $22.1 million greater than the fourth quarter of 2004 and 14% or $9.8 million greater on a sequential quarter basis. The interest margin for the quarter of 4.20% reflected a decrease of 12 basis points from the year ago margin and a decrease of 2 basis points from the previous quarter margin. The decrease in margin for both the sequential quarter and the previous year was driven by increased competitiveness in loan and deposit pricing.

East West provided $2.5 million for loan losses during the fourth quarter of 2005, compared to $5.0 million during the fourth quarter of 2004 and $4.5 million during the previous quarter.

Noninterest income for the fourth quarter totaled $7.4 million, 17% or $1.5 million lower than the fourth quarter of 2004 and 6% or $469 thousand lower than the sequential quarter. The year-over-year decrease in noninterest income is primarily due to decreased gains on sales of fixed assets. Core noninterest income, excluding the impact of gains on sales of investment securities and fixed assets, totaled $6.6 million during the quarter, 10% or $582 thousand higher than the prior year figure and 9% or $545 thousand higher than the sequential quarter. The increase in core noninterest income from the prior year is a result of higher banking fees earned from the expansion of the Bank and also higher loan fees, largely a result of increased servicing fees.

Noninterest expense totaled $37.1 million for the fourth quarter of 2005, 36% or $9.8 million higher than a year ago and 22% or $6.8 million higher than the previous quarter. This increase from both prior year and prior quarter was largely due to higher compensation and occupancy costs associated with the recent acquisition of UNB, along with organic expansion of the Bank. Occupancy expense has also increased due to the recent relocation and expansion of our corporate offices. Other expenses increased 33% during the quarter compared to the same period in prior year, largely due to a $1.0 million contribution to the Bowers Museum and also higher deposit-related costs resulting from growth in commercial deposits.

East West generated a 37.97% operating efficiency ratio for the fourth quarter of 2005, compared to 36.52% a year ago. The effective tax rate for the fourth quarter was 37.24% compared to 36.69% in the prior year period.

Full Year 2005 Operating Results

For the full year 2005, net interest income climbed to $280.1 million, 41% or $80.9 million greater than prior year. The interest margin for 2005 was 4.21%, a 3 basis point decrease from the year ago margin of 4.24%. The positive effects of higher volume and yields on earning assets was offset by the adverse impact of higher short-term rates, continuing competitiveness in deposit pricing and the resulting higher market interest rates paid.

East West provided $15.9 million for loan losses during 2005, compared to $16.8 million during 2004. Management anticipates total provision for loan losses for 2006 to range from $16.0 to $18.0 million, reflecting the estimated loan growth of 15% to 17% and resulting in an allowance for loan losses to total gross loans ratio of 1.05% to 1.10% for the full year 2006.

Total noninterest income for 2005 was $29.6 million, a decrease of $722 thousand over 2004. Core noninterest income, excluding the impact of gains on sales of investment securities and fixed assets, totaled $25.3 million for the year, comparable to $25.1 million earned in 2004. Management anticipates core noninterest income for the full year 2006 to remain at comparable levels to prior year.

Noninterest expense totaled $123.5 million for the full year 2005, 35% or $32.1 million higher than 2004. This increase from 2004 was largely due to higher compensation and occupancy costs associated with recent acquisitions. Additionally, occupancy expense has also increased due to the recent relocation and expansion of our corporate offices. Other expenses increased 41% from 2004, largely due to higher deposit-related costs resulting from growth in commercial deposits and increased charitable contributions during 2005. Based on the projected growth of the Bank, management expects operating expenses to increase approximately 20% to 25% in 2006.

East West generated an efficiency ratio for the full year 2005 of 36.53%, compared to 35.64% for the year of 2004. Based on the projected growth of the Bank, management expects the efficiency ratio for the full year 2006 to be in the range of 36% to 38%.

For the full year 2005, the effective tax rate was 36.38% compared with 35.70% in the prior year. Management anticipates an effective tax rate for the full year 2006 to be approximately 37% to 38%.

Asset Quality

Total nonperforming assets were $30.1 million or 0.36% of total assets at December 31, 2005, compared to $5.9 million, or 0.10% of total assets at December 31, 2004. Although nonperforming assets have increased from recent historic lows, this increase is largely non-systemic and our loss rates continue to remain at low levels. As of December 31, 2005, $27.7 million of the nonperforming assets were comprised of five fully secured loans and four trade finance loans that are fully guaranteed by Ex-Im Bank. Nonaccrual loans at December 31, 2005 were $24.1 million or 0.36% of total loans, compared to $4.9 million or 0.10% of total loans, at December 31, 2004.

Net chargeoffs for the quarter totaled $375 thousand or an annualized 0.02% of average loans, compared to $837 thousand, or an annualized 0.07% of average loans for the fourth quarter of 2004 and $1.1 million or an annualized 0.08% of average loans for the previous quarter.

The allowance for loan losses at December 31, 2005 was $68.6 million or 1.01% of total loans and 284% of nonaccrual loans, compared to $50.9 million or 0.99% of total loans and 1,033% of nonaccrual loans at December 31, 2004. At December 31, 2005, the allowance for unfunded loan commitments and off-balance sheet credit exposures amounted to $11.1 million, compared to $7.7 million at December 31, 2004. The increase in the allowance for unfunded loan commitments and off-balance sheet credit exposures is a result of higher volume on letters of credit and loan commitments. The allowance for unfunded loan commitments and off-balance sheet credit exposures is included in accrued expenses and other liabilities on the balance sheet.

Capitalization

East West continues to remain well capitalized under all regulatory guidelines. At December 31, 2005, our Tier I risk-based capital ratio was 9.01%, total risk-based capital ratio was 11.15% and Tier I leverage ratio was 8.14%. Total stockholders' equity as of December 31, 2005 was $734.1 million, representing a book value of $12.99 per share.

About East West

East West Bancorp is a publicly owned company, with $8.3 billion in assets, whose stock is traded on the Nasdaq National Market under the symbol "EWBC". The company's wholly owned subsidiary, East West Bank, is the second largest independent commercial bank headquartered in Los Angeles with 56 total branch locations. East West Bank serves the community with 55 branch locations across Southern and Northern California, one branch location in Houston, Texas and a Beijing Representative Office in China. 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, 2004 (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 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.