Impaired and Past Due Loans Outstanding gross loans and impaired loans, net of allowance for credit losses, by loan type, are as follows:
As at October 31, 2021
As at October 31, 2020
Gross Impaired Amount (1)
Net Impaired Loans
Gross Impaired
Net Impaired Loans
Gross Amount
Stage 3 Allowance
Gross Amount
Stage 3 Allowance
Amount (1)
Personal
$
6,395,524 $
11,651 $
485 $
11,166 $ 6,073,643 $
26,481 $
829 $
25,652
Business General commercial loans Commercial mortgages (2)
10,894,735 7,039,459 5,286,538
100,546 29,296 40,488
27,081
73,465 24,072 34,901 19,423
9,697,325 5,695,614 5,253,503 3,252,519
90,628 48,797 63,642 24,858
21,261
69,367 47,078 53,316 24,858
5,224 5,587
1,719
Equipment financing and leasing
10,326
Real estate project loans
2,871,195
20,343
920
- -
Oil and gas production loans
413,500
-
-
-
195,115
2,735
2,735
Total
$ 32,900,951 $
202,324 $
39,297 $
163,027 $ 30,167,719 $
257,141 $
34,135 $
223,006
(1) Gross impaired loans include foreclosed assets with a carrying value of $2,253 (October 31, 2020 – $4,357). CWB pursues timely realization on foreclosed assets and does not use the assets for its own operations. (2) Multi-family residential mortgages are included in commercial mortgages.
Outstanding impaired loans, net of allowance for credit losses, by provincial location of security are as follows:
As at October 31, 2021
As at October 31, 2020
Gross Impaired Amount
Net Impaired Loans
Gross Impaired Amount
Net Impaired Loans
Stage 3 Allowance
Stage 3 Allowance
Alberta
$
88,390 $
17,457 $
70,933 $
105,487 $
14,292 $
91,195 52,788 35,645 21,589
Ontario
56,858 37,001
17,341
39,517 34,316
60,892 40,304 23,692
8,104 4,659 2,103 1,942 2,356
British Columbia
2,685
Saskatchewan
6,288 2,965
869 549 195 201
5,419 2,416
Quebec
8,636 4,007
6,694 1,651
Manitoba
812
617
Other
10,010
9,809
14,123
679
13,444
Total
$
202,324 $
39,297 $
163,027 $
257,141 $
34,135 $
223,006
Loans are considered past due when a customer has not made a payment by the contractual due date. The following table presents the carrying value of loans that are contractually past due but not classified as impaired:
1 - 30 days
31 - 60 days
61 - 90 days
As at October 31, 2021
Total
Personal Business
$
41,890 $
13,727 $
1,657 $
57,274 79,834
57,003
20,772
2,059
Total
$
98,893 $
34,499 $
3,716 $
137,108
As at October 31, 2020
$
139,660 $
41,799 $
18,329 $
199,788
ALLOWANCE FOR CREDIT LOSSES Allowance for credit losses related to performing loans is estimated using an ECL approach that incorporates a number of underlying assumptions which involve a high degree of management judgment and can have a significant impact on financial results. The allowance for credit losses is our most significant accounting estimate. Significant key drivers impacting the estimation of ECL, which are interrelated, include:
• Internal risk ratings attributable to a borrower reflecting changes in credit quality; • Estimated realizable amount of future cash flows on Stage 3 loans; • Thresholds used to determine when a borrower has experienced a SICR; and, • Forward-looking information, specifically related to variables to which the ECL models are calibrated.
The inputs and models used for estimating ECL may not always capture all emerging market conditions at the reporting date and as such, qualitative adjustments based on expert credit judgment that consider reasonable and supportable information may be incorporated.
CWB Financial Group 2021 Annual Report | 83
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