CWBFG Annual Report 2021

Reconciliation A reconciliation of changes in the allowance for credit losses related to loans, committed but undrawn credit exposures and letters of credit follows:

As at October 31, 2021

Performing

Impaired

Stage 1

Stage 2

Stage 3

Total

Personal Balance at beginning of year

$

1,346 $

5,376 $

829

$

7,551

Transfers to (from) Stage 1 (1)

1,809

(1,809)

-

- - -

Stage 2 (1) Stage 3 (1)

(574)

574

-

-

(1,219)

1,219

Net remeasurement (2)

(2,960)

345

(474)

(3,089)

New originations

1,655

-

-

1,655

Derecognitions and maturities

(348)

(968)

(170)

(1,486)

Provision for (reversal of) credit losses (3)

(418)

(3,077)

575

(2,920) (1,153)

Write-offs

- -

- -

(1,153)

Recoveries

234

234

Balance at end of year

928

2,299

485

3,712

Business Balance at beginning of year

$

57,503 $

66,053 $

33,306

$

156,862

Transfers to (from) Stage 1 (1)

18,778

(18,778)

-

- - -

Stage 2 (1) Stage 3 (1)

(8,239)

8,315

(76)

(56)

(10,494)

10,550 41,406

Net remeasurement (2)

(39,506)

13,841

15,741 63,670

New originations

63,670

-

-

Derecognitions and maturities

(27,526)

(20,235)

(1,862)

(49,623)

Provision for (reversal of) credit losses (3)

7,121

(27,351)

50,018

29,788

Write-offs

- -

- -

(56,947)

(56,947)

Recoveries

12,435

12,435

Balance at end of year

64,624

38,702

38,812

142,138

Total Allowance for Credit Losses

$

65,552 $

41,001 $

39,297

$

145,850

Represented by: Loans

$

62,687 $

39,445 $

39,297

$

141,429

Committed but undrawn credit exposures and letters of credit (4)

2,865

1,556

-

4,421

Total Allowance for Credit Losses (5)

$

65,552 $

41,001 $

39,297

$

145,850

(1) Represents stage movements prior to remeasurement of the allowance for credit losses. (2) Represents credit risk changes as a result of significant increases in credit risk, changes in credit risk that did not result in a transfer between stages, changes in model inputs and assumptions, including changes in forward-looking macroeconomic forecasts and qualitative adjustments, and changes due to partial repayment. (3) Included in the provision for credit losses in the consolidated statements of income. (4) Included in other liabilities in the consolidated balance sheets. (5) Allowance for credit losses related to debt securities measured at FVOCI, cash resources and other financial assets classified at amortized cost were excluded from the table above. See Note 5 for details related to the allowance for credit losses on debt securities measured at FVOCI. Cash resources and other financial assets classified at amortized cost are presented in the consolidated balance sheets, net of allowance for credit losses.

CWB Financial Group 2021 Annual Report | 85

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