CWBFG Annual Report 2021

The following table summarizes the maturities of derivative financial instruments and the weighted average interest rates paid and received on contracts:

As at October 31, 2021

As at October 31, 2020

Maturity

Maturity

1 Year or Less

More than 1 Year

1 Year or Less

More than 1 Year

Contractual Interest Rate

Contractual Interest Rate

Contractual Interest Rate

Contractual Interest Rate

Notional Amount

Notional Amount

Notional Amount

Notional Amount

Cash Flow Hedges Interest rate risk

Interest rate swaps (1)

$

665,000

1.75 % $

2,750,000

1.51 %

$

1,968,000

1.74 % $

2,490,000

1.89 %

Equity risk

Equity swaps (2)

9,928

1.31 %

9,522

1.47 %

10,020

1.26 %

10,450

1.62 %

Fair Value Hedges Interest rate risk

Interest rate swaps (3)

18,582

1.48 %

361,561

1.16 %

-

-

335,825

0.86 %

Not Designated as

Accounting Hedges Foreign exchange contracts (4)

136,530

-

-

- -

120,840

-

-

-

Equity swaps (5)

8,886

0.98 %

-

6,184

1.53 %

-

-

Total

$

838,926

$

3,121,083

$

2,105,044

$

2,836,275

(1) Interest rate swaps designated as accounting cash flow hedges outstanding at October 31, 2021 mature between November 2021 and July 2030. (2) Equity swaps designated as accounting hedges outstanding at October 31, 2021 mature between June 2022 and June 2024. (3) Interest rate swaps designated as accounting fair value hedges outstanding at October 31, 2021 mature between August 2022 and September 2028. (4) Foreign exchange contracts outstanding at October 31, 2021 mature between November 2021 and February 2022. The contractual interest rate is not meaningful for foreign exchange contracts. (5) Equity swaps not designated as accounting hedges outstanding at October 31, 2021 mature in June 2022.

The following tables present the details of the hedged items categorized by their hedging relationships:

As at October 31, 2021

Changes in Fair Value Used for Calculating Hedge Ineffectiveness

AOCI - Cash Flow Hedges

Consolidated Balance Sheets Line Item

Cash Flow Hedges Interest rate risk Variable rate assets and liabilities

Loans, Deposits

$

(94,961) $

33,332

Forecasted NHA MBS issuances

n/a

-

(1,709)

Equity risk

Restricted share units

Other liabilities

9,170

2,065

As at October 31, 2020

Changes in Fair Value Used for Calculating Hedge Ineffectiveness

AOCI - Cash Flow Hedges

Consolidated Balance Sheets Line Item

Cash Flow Hedges Interest rate risk

Variable rate assets

Loans

$

65,284

$

98,790

Forecasted NHA MBS issuances

n/a

-

(2,479)

Equity risk

Restricted share units

Other liabilities

(4,390)

(305)

n/a - not applicable

CWB Financial Group 2021 Annual Report | 93

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