CWBFG Annual Report 2022

CWB Financial Group (CWB) is the only full-service bank in Canada with a strategic focus to meet the unique financial needs of businesses and their owners.

Annual Report 2022

About Us CWB Financial Group (CWB) is the only full-service bank in Canada with a strategic focus to meet the unique financial needs of businesses and their owners. We provide our nation-wide clients with full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services. Clients choose CWB for a differentiated level of service through specialized expertise, customized solutions, and faster response times relative to the competition. Our people take the time to understand our clients and their business, and work as a united team to provide holistic solutions and advice. We are firmly committed to the responsible creation of value for all our stakeholders and our approach to sustainability will support our continued success. Learn more at www.cwb.com . Our Values PEOPLE FIRST THE HOW MATTERS RELATIONSHIPS GET RESULTS INCLUSION HAS POWER EMBRACE THE NEW

Change is everywhere. We seek out new ideas and are committed to continuous learning. We know that better is always possible.

Diverse teams unleash new ideas and perspectives. We are aware of our own biases. We are proud of who we are, and we are allies for those around us.

How we do things is as important as what we do. We take ownership, and move with urgency and efficiency. We always act with integrity, and balance risk and reward.

Caring people are the key to our success. We work as a team and support one another. We always treat each other with respect and have the courage to be candid.

Clients choose CWB for the best experience. We build relationships proactively, with intention and consistency. Our results depend on it.

Connect with us:

CWB.COM

Why invest in CWB Focused investments in our core capabilities support the unrivaled experience we provide to clients as the best full-service bank for business owners in Canada

TABLE OF CONTENTS

Message From President & CEO.....02 Message From Chair of the Board...08 Management’s Discussion and Analysis.................. 14 Consolidated Financial Statements............. 61 Shareholder Information. .......... 110 Five Year Financial Summary. ..............111

Our differentiated market position provides significant growth opportunities to serve the full-service needs of more business owners across the country

We are a disciplined lender that consistently delivers strong growth with a history of low credit losses through economic cycles

We maintain strong capital ratios and expect a successful AIRB transition to unlock the capital strength embedded in our business model

Strategic Direction We invest in key products, services, processes, and culture to provide an unrivaled client experience, be a career destination for top talent, and optimize our business to deliver enhanced shareholder value. Our strategic direction confirms our path ahead and outlines our key priorities to further strengthen our position as the best full-service bank for business owners in Canada.

BEST FULL-SERVICE BANK FOR BUSINESS OWNERS IN CANADA

ORGANIZATIONAL GOALS

Destination for top talent (People)

Optimize our business (Investors)

Unrivaled client experience (Clients)

OUR FOCUS

AIRB supported by a scalable operating model

Inclusive culture & employee experience

Elevated digital & payments capabilities

Dierentiated wealth management experience

Lower-cost funding model

Market & segment expansion

OUTCOMES

Accelerated growth of full-service client relationships

Strong core operating performance with meaningful expansion of return on equity

CWB Financial Group 2022 Annual Report | 1

MESSAGE FROM PRESIDENT AND CEO Chris Fowler

WE ARE THE BEST BANK FOR BUSINESS OWNERS IN CANADA

We have a differentiated strategy as the best full-service bank for business owners and their families. We are obsessed with their success and provide them with an unrivaled client experience that remains consistent through economic cycles. Our winning culture and focus of our teams to deliver that client experience is a competitive advantage, and we are executing on opportunities to win more full-service clients across our Canadian footprint. Our people first culture supports our continued position as a destination for top talent. This year we seamlessly executed our planned succession at the executive team level. I wish Carolyn Graham, Glen Eastwood and Darrell Jones happiness in their retirements and thank each of them for their significant contributions to CWB. I am confident that Carolina Parra, Jeff Wright, John Steeves and Azfar Karimuddin are the right additions to our executive team to continue to deliver a differentiated client experience and award-winning workplace culture. Our collaborative, high-performance culture was

recognized again this year by Great Place to Work Canada ® as one of this year’s top 20 Best Workplaces TM in Canada and one of the Best Workplaces TM for Hybrid Work. General commercial loans represent a broad section of the Canadian economy that we believe is underserved by other banks and is a core strategic target for growth. This category is our largest full-service client opportunity, and we delivered strong results, with 14% loan growth in the last year and 15% average annual loan growth over the last five years in this segment (figure 2). We continued to increase our brand awareness, familiarity, and physical presence in Ontario and are leveraging these improvements to drive market share gains. We delivered another year of very strong growth in Ontario fueled by our existing full-service banking centre in Mississauga and our new banking centre in Markham, which opened this summer. Our teams have grown loans in Ontario by an average of 14% annually over the last five years (figure 1).

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FIGURE 1

FIGURE 2

FIGURE 3

DIVERSIFYING LOANS BY PROVINCE (%)

DIVERSIFYING LOANS BY LENDING SECTOR (%)

FUNDING DIVERSIFICATION (%)

2022

14% Branch demand and notice deposits 5YR CAGR

2022

15% General Commercial Loans 5YR CAGR

14% Ontario Loans 5YR CAGR

2017

British Columbia Alberta Ontario Remainder

General commercial loans Commercial mortgages

Branch demand and notice Branch term Broker term Sub debt and capital markets Securitization

Personal loans and mortgages Equipment financing and leasing Real estate project loans Oil and gas production loans

WE ARE WELL POSITIONED FOR POTENTIAL VOLATILITY IN ECONOMIC CONDITIONS

Economic conditions deteriorated as this year progressed. Rising commodity prices, supply chain pressures, labour shortages and strong global and domestic demand drove persistent levels of inflation. In response, the rapid and significant increase in market interest rates began to cool economic growth and fuel the potential for recessionary conditions to emerge in Canada. Through the volatile economic conditions over the last two years, we have followed a disciplined lending model within a prudent credit risk appetite. We have ended the current year at a historically low level of gross impaired loans, which represented less than 0.50% of total loans, and our provisions for credit losses and write- offs remain well below historical averages (figure 4). While our targeted approach for loan growth has delivered very strong credit performance to date, it has put downward pressure on our net interest margin. In the rising interest rate environment, the overall yield on our loan portfolio has not maintained pace with the increase in our deposit costs. We expect this impact to begin to reverse as market interest rates

and deposit costs stabilize, and we will not deviate from our prudent credit risk management approach to accelerate an expansion of our net interest margin. Over the past several years, we have been strategically focused on diversifying our sources of funding (figure 3). Very strong growth of branch-raised deposits (1) , and continued maturation of our debt capital market and securitization funding channels have delivered a significant improvement in the diversity of our funding. Our strategic effort to convert our clients from single product to broader full-service relationships has supported 14% annual growth of branch-raised deposits (1) over the last five years, while we have grown total loans 9% annually over the same period. We have been prudently managing our regulatory capital ratios through the use of our at-the-market common equity distribution program. This has enabled us to balance delivering continued strong full-service client growth while also maintaining a conservative capital position to support us through potential volatility in economic conditions.

Gross impaired loans as a % of gross loans Write-offs as a % of average loans (1) Our five-year and ten-year average write-offs as a percentage of average loans (1) are 17 and 18 basis points, respectively.

STRONG CREDIT QUALITY %

FIGURE 4

0.90

0.60

0.30

0.00

12 13 14 15 16

17 18 19 20 21

(1) Non-GAAP measure – refer to definitions and detail provided on page 16.

CWB Financial Group 2022 Annual Report | 3

Ribbon cutting ceremony at the new Markham Banking Centre in Ontario

A FOUNDATION FOR STRONGER CORE FINANCIAL PERFORMANCE

The accelerated growth in our market share in Ontario will be further supported with the opening of a new banking centre in Toronto’s financial district next year. We are also well- positioned to capitalize on opportunities available for full- service client growth in Western Canada and will leverage our new modern flagship banking centre in downtown Vancouver to support market share growth in British Columbia. With our modern technology infrastructure and a targeted approach to strengthen our digital capabilities, we provide enhanced value to our clients. We successfully launched our new personal and small business digital banking platforms this year to provide clients more time to focus on running their business. Continued enrichment of our digital capabilities broadens our access to stable lower cost funding through enhanced growth of full-service relationships both within and outside our banking centre footprint.

Relationship Manager Chris Greenway shows CWB client Mark Halston (President, Ironman Properties Ltd. & Ironman Automotive Ltd.) the new cwb.digital ™ small business banking platform.

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PRE-TAX, PRE-PROVISON INCOME (1) $ MILLIONS

REVENUE $ MILLIONS

DILUTED EPS $/SHARE

4.00

1,200

600

1,076

522

3.39

3.50

1,000

500

3.00 2.50 2.00 1.50

800

400

600

300

400

200

1.00

200

100

0.50 0

18 19 20 21

(1) Non-GAAP measure – refer to definitions and detail provided on page 16.

“As our clients grow and become successful, we are positioned to grow with them.”

In 2022 CWB Wealth harmonized our five legacy private wealth brand identities. Visit cwbwealth.com/foundations-film to learn more.

Our expanded wealth offering enables our teams to continue to be our clients’ financial services partner through all stages of their lives. CWB Wealth is positioned to provide a differentiated client experience in Canadian private wealth advisory services and strengthen full-service relationships with successful business families, business executives, and employees of the businesses CWB serves. Today, we are a more resilient bank than ever with a track record of strong performance through economic cycles. I would like to thank our teams for their commitment to delivering an unrivaled experience to our clients and advancing our strategic direction. The enhanced capabilities we have built provide a platform to create sustainable long- term value. I would also like to personally thank our clients across Canada for choosing CWB and giving our team the opportunity to be a trusted partner that is obsessed with your success.

To my fellow shareholders, I would like to thank you for your commitment to CWB through a year of strategic investment and prudent risk management to ensure we are well-positioned for the challenges and opportunities that may lie ahead. Looking forward, we are taking a targeted approach in our investments to prudently manage our expenses and return our efficiency ratio closer to historical levels, while driving strong growth of profitable full- service client relationships across our geographic footprint. Our team is poised to deliver upon our significant potential with strong core operating performance next year in line with our financial scorecard, and we have charted a course to reward you with a meaningful expansion of our return on equity by 2024.

Chris Fowler President and Chief Executive Officer

FINANCIAL SCORECARD

Pre-tax, pre-provision income growth

Efficiency ratio (1)

Annual Metrics

Adjusted ROE (1)

Greater than 10%

12% by 2024

Less than 50%

Performance Targets

(1) Non-GAAP measure – refer to definitions and detail provided on page 16.

CWB Financial Group 2022 Annual Report | 5

Executive Committee

The CWB Financial Group Executive Committee

In 2022, we welcomed four outstanding leaders to CWB’s executive team – Carolina Parra, Jeff Wright, John Steeves and Azfar Karimuddin. These appointments build on our legacy of outstanding leadership, positioning us to deliver long-term value for our clients, people, and investors.

Front Row (left to right): DARRELL JONES – Former Executive Vice President and Chief Information Officer, CAROLYN GRAHAM – Former Executive Vice President and Chief Risk Officer, KELLY BLACKETT – Chief People & Culture Officer, STEPHEN MURPHY – Group Head, Commercial, Personal & Wealth, CAROLINA PARRA – Chief Risk Officer, JEFF WRIGHT – Group Head, Client Solutions & Specialty Businesses. Back row (left to right): MATT RUDD – Chief Financial Officer, AZFAR KARIMUDDIN – Chief Information Officer, CHRIS FOWLER – President and Chief Executive Officer, JOHN STEEVES – Executive Vice President, Banking

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Board of Directors

CORPORATE GOVERNANCE

CWB Financial Group strives to maintain the trust of our stakeholders through high standards of corporate governance. Our risk governance structure, including a complete list of our Board committees and the key responsibilities for each committee can be found on page 47 of this report. CWB’s Management Proxy Circular will be available on our website in February 2023. It will include information on our director nominees, reports of each board committee, and detailed descriptions of our corporate governance practices. Please review our Management Proxy Circular to learn how shareholders can participate in our annual meeting on April 6, 2023. Information regarding our corporate governance practices, including our code of conduct, our director independence standards and our board and committee mandates, is available on our website at cwb.com/corporate-governance We are committed to open communication with stakeholders – please contact us at: ChairoftheBoard@cwbank.com CorporateSecretary@cwbank.com

ANDREW J. BIBBY Corporate Director

DR. MARIE Y. DELORME

MARIA FILIPPELLI Corporate Director

CHRISTOPHER H. FOWLER President and CEO, Canadian Western Bank

CEO, The Imagination Group of Companies

LINDA M.O. HOHOL Corporate Director

ROBERT A. MANNING President, Cathton Investments Ltd.

E. GAY MITCHELL Corporate Director

SARAH A. MORGAN- SILVESTER (chair) Corporate Director

MARGARET J. MULLIGAN Corporate Director

IRFHAN A. RAWJI CEO, MobSquad

IAN M. REID Corporate Director

THANK YOU EXECUTIVES

From everyone at CWB, we extend a sincere thank you

and congratulations to Carolyn Graham, Glen Eastwood, and Darrell Jones as they retire after many years of exceptional service to CWB and our stakeholders. Their significant contributions and leadership have been essential in how we have shaped our culture and transformed our business.

GLEN EASTWOOD

CAROLYN GRAHAM

DARRELL JONES

Executive Vice President, Business Transformation

Executive Vice President and Chief Risk Officer

Executive Vice President and Chief Information Officer

(Retired Mar 31, 2022)

(Retired Oct 31, 2022)

CWB Financial Group 2022 Annual Report | 7

MESSAGE FROM CHAIR OF THE BOARD Sarah Morgan- Silvester

DEAR FELLOW SHAREHOLDERS

I was honoured to be appointed Chair of your Board of Directors this year. The Board continues to provide strong oversight as management executes our winning strategy to deliver the best full-service bank for business owners in Canada, and we are pleased with the significant progress made this year to continue to enhance our capabilities. The Board remains optimistic for the future as our differentiated business model, focus to deliver an unrivaled experience for our business owner client, and targeted growth all position us well to achieve our full potential as we navigate through the risks from the potential economic volatility on the horizon. Our confidence reflects the strength of our teams across the organization, and I’m pleased we seamlessly executed on our planned succession at both the Board level and executive team. I believe we have the right diversity of experience,

perspectives and skill sets to effectively address the opportunities and challenges ahead. I am especially proud of how our leaders have given back to their communities. I applaud Dr. Marie Delorme for her award for Excellence in Aboriginal Relations for being a bridge builder who has contributed to making connections between Indigenous people and Canadian society through their professional and voluntary commitments. I would also like to congratulate Chris Fowler on his induction into the Junior Achievement Northern Alberta Business Hall of Fame. The Board continues to provide strong oversight of CWB’s business, including the management of evolving and emerging risks. As part of strengthening oversight of sustainability, we updated Board and subcommittee mandates to further reflect our governance responsibilities in relation to CWB’s approach to address environmental, social and governance (ESG) factors.

8 | CWB Financial Group 2022 Annual Report

“Through her tireless work, commitment and passion, Dr. Marie Delorme has been a catalyst to change and has made an indelible mark on Indigenous relations. A born relationship builder, she has inspired Indigenous people and Canadian society to come together”

– RANDY WHITE President of Sysco Canada

We remain committed to supporting and engaging with management as they continue to develop and implement CWB’s approach to sustainability. In closing, on behalf of the Board, I want to express appreciation to my fellow shareholders for their ongoing support and to our clients for the opportunity to be their full-service financial provider. I also want to thank all our CWB team members for your unwavering commitment to

our success. I am excited for the opportunities ahead of us and remain confident in our ability to provide sustainable value for all stakeholders.

Sarah Morgan-Silvester Chair of the board

BOB PHILLIPS

SANFORD RILEY

THANK YOU BOB & SANDY On behalf of the Board, I wish to express our utmost gratitude to Bob Phillips, who retired in April 2022 after 21 years on CWB’s board, including six as Chair. Bob provided extraordinary perspective and guidance throughout his tenure and his leadership has left an indelible mark on CWB. We also wish to express our appreciation to Glen Eastwood, Carolyn Graham, and Darrell Jones for their significant contributions as members of our executive team and wish them the very best in retirement. I would also like to recognize Sanford Riley who retired after 11 years on our Board. Thank you, Sandy, for your invaluable insight and experience toward advancing CWB’s strategic direction, particularly in the development and growth of our wealth management business. Your thoughtful contributions and dedicated service will be missed.

CWB Financial Group 2022 Annual Report | 9

Building a Sustainable Future

Leaders Carmen, Kate and Rachel help the Talent Acquisition team put their best teal foot forward to tell the CWB story and attract the right talent to build an inclusive and engaged CWB workforce.

Our strategy, culture and values guide our approach to sustainability, which includes ESG factors. Our approach is focused to support the ongoing success of our business and the businesses of our clients and we remain firmly committed to long-term value creation for all our stakeholders.

ENVIRONMENTAL Manage our environmental impact and support our clients through Canada’s transition to net-zero emissions.

SOCIAL Support our clients, teams

GOVERNANCE Ensure the highest standards of

and communities in pursuit of a sustainable and inclusive future.

governance, ethics and integrity to maintain the trust of our stakeholders.

For information on our commitment to sustainable value creation for all our stakeholders, see our 2021 Sustainability Report at: www.cwb.com/sustainability-reports.

10 | CWB Financial Group 2022 Annual Report

Creating an inclusive and engaged team Our people are the key to our ability to deliver an unrivaled client experience. We are focused to attract and retain top talent, advance our culture and maximize the potential of every member of our diverse workforce.

60% Female

6% Persons with disabilities

31% Black, Indigenous or racialized persons

FOSTERING AN INCLUSIVE CULTURE Continued to support our eleven employee-represented groups (ERGs) to create a sense of belonging for all of our team members. Approximately one-third of our people actively engage in our ERGs. Continued to invest in employee training and development focused on inclusion, diversity and unconscious bias, and support learning opportunities facilitated by our ERGs. Increased support for targeted talent sourcing programs to ensure we attract a diverse candidate pool and continued to provide coaching, development opportunities and advocacy for underrepresented groups.

CWB Pride members

PUTTING OUR PEOPLE FIRST Recognized by Great Place to Work Canada ® as one of this year’s top 20 Best Workplaces TM in Canada, which reflects our commitment to advance a culture that puts people first. Continued to provide an expanded mental health resource and benefit offering, including the celebration of Teal Care Day, which awarded an extra day off for our people to prioritize their overall well-being. Supported flexible work options to meet the diverse needs of our team members and their families, while

also recognizing the importance of human connection to provide an unrivaled client experience. Invested more than 48,000 hours in employee training and development, and continued to focus on informal and formal mentorship and career coaching to support internal talent growth.

CWB Financial Group 2022 Annual Report | 11

Investing in our communities We take pride in contributing to the growth and success of the communities in which we operate. In 2022, we invested over $2 million in community organizations through donations, sponsorships, disaster relief funding, and employee volunteer grants and matching initiatives, with a focus to promote inclusivity and enable business.

FOSTERING INCLUSIVE COMMUNITIES Allocated approximately 70% of our community funding in 2022 to support organizations serving Black and Indigenous communities, immigrants and newcomers to Canada, persons with disabilities and vulnerable youth and women. Took concrete actions towards reconciliation with Indigenous communities. We provided funding to Indigenous transition programs at universities across Canada, supported development of an art space for Indigenous youth healing from trauma, delivered tutoring sessions in Indigenous classrooms and funded the creation of Indigenous storybooks for cultural and language revitalization. Invested in organizations that are focused to positively impact refugee and immigrant communities by providing newcomers to Canada with microlending for accreditation and training, hands-on coaching and access to support services.

Marlene (CWB Sharing Circle member) shops at the Indigenous Artisan Market on National Indigenous People’s Day at Telus World of Science.

ENABLING BUSINESS Continued to support diverse entrepreneurs to plan, launch and grow their businesses through sponsorship initiatives, including the CWB Business Incubator for Women Entrepreneurs program. Funded cultural awareness training for small- and medium-sized businesses to improve inclusion in the workplace. Provided funding to create a post- secondary entrepreneurial training program that will teach students with diverse learning needs essential skills to start and grow their own businesses.

Shamsi (Pamjy Candles) from the CWB Business Incubator for Women Entrepreneurs.

12 | CWB Financial Group 2022 Annual Report

Our developing approach to climate change We recognize that we have a part to play in Canada’s transition to net-zero emissions by managing our direct and indirect climate impact, supporting the ongoing success of our clients as they strive to achieve their climate goals and mitigating the risks associated with climate change.

2022 Progress

Future Priorities

MEASURING OUR IMPACT

STRENGTHENING GOVERNANCE AND RISK MANAGEMENT Enhanced Board of Director and management oversight of ESG factors. This included updates to Board and committee mandates, and the initiation of an ESG Steering Committee to support the development and execution of our approach to climate change. Continued to integrate environmental and social risk factors, including climate-related risks, into our Risk Management framework.

STAYING INFORMED Continued to participate in national climate-related programs, including the Sustainable Finance Action Council and industry working groups focused on climate- related risk management and disclosures.

MAPPING A PATH FORWARD Disclose our GHG emissions and develop a reduction plan and targets to support Canada’s transition to net-zero emissions, with an initial focus on our Scope 1 and 2 GHG emissions from our operations. Develop an approach that considers how we will best support our clients through Canada’s transition to net-zero emissions. Further integration of climate risk into our Risk Management framework, risk appetite and policies.

Implemented a process to measure our Scope 1 and 2 greenhouse gas (GHG) emissions across our national operational footprint to support our ability to develop meaningful and supportable reduction targets in the future. Initiated development of a process to measure our Scope 3 GHG emissions within our lending portfolio, which will be a foundational component of our developing approach to climate change. Continued to embed sustainable practices as we upgrade existing or open new locations.

As we evolve our approach to climate change, we will continue to enhance our disclosures. For further information, see our Task Force on Climate-related Financial Disclosures (TCFD) reporting within the Social and Environmental Risk section of our MD&A and our 2021 Sustainability Report .

CWB Financial Group 2022 Annual Report | 13

Management’s Discussion and Analysis

TABLE OF CONTENTS Forward-Looking Statements...............................................15 Non-GAAP Measures...........................................................16

Liquidity Management....................................................................34 Capital Management......................................................................36 Financial Instruments and Other Instruments................................39 Off-Balance Sheet...........................................................................39

Who We Are.......................................................................17 Growth Strategy.............................................................................17

Summary of Quarterly Results and Fourth Quarter..................40 Fourth Quarter of 2022...................................................................40

Fiscal 2022 Strategic Highlights...........................................18 Fiscal 2023 Strategic Priorities.............................................19

Accounting Policies and Estimates........................................41 Critical Accounting Estimates........................................................41 Changes In Accounting Policies and Financial Statement Presentation..................................................................42 Future Changes In Accounting Policies..........................................43 Risk Management...............................................................44 Top Emerged and Emerging Risks..................................................44 Risk Management Overview...........................................................45 Risk Universe - Report on Principal Risks........................................49 Other Risk Factors..........................................................................59 Share and Distribution Information.......................................60 Related Party Transactions...................................................60 Controls and Procedures.....................................................60

CWB Financial Group Performance.......................................20 Select Financial Highlights.............................................................20 Summary of Operations..................................................................21 Fiscal 2023 Outlook .......................................................................22 Net Interest Income........................................................................23 Non-Interest Income.......................................................................24 Non-Interest Expenses and Efficiency Ratio...................................25 Income Taxes..................................................................................26 Comprehensive Income .................................................................26 Cash and Securities........................................................................27 Loans............................................................................................... 28 Credit Quality.................................................................................30 Deposits and Funding.....................................................................33 Other Assets and Other Liabilities..................................................34

14 | CWB Financial Group 2022 Annual Report

Management’s Discussion and Analysis This Management’s Discussion and A nalysis (MD&A), dated December 1, 2022, should be read in conjunction with the audited consolidated financial statements of Canadian Western Bank (CWB) for the year ended October 31, 2022 and the audited consolidated financial statements and MD&A for the year ended October 31, 2021. Additional information relating to CWB, including the Annual Information Form, is available on SEDAR at www.sedar.com and on our website at www.cwb.com.

The audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and are presented in Canadian dollars.

FORWARD-LOOKING STATEMENTS From time to time, we make written and verbal forward-looking statements. Statements of this type are included in our Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as media releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about our objectives and strategies, targeted and expected financial results and the outlook for CWB’s businesses or for the Canadian economy. Forward- looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may increase”, “may impact”, “goal”, “focus”, “potential”, “proposed” and other similar expressions, or future or conditional verbs such as “will”, “should”, “would” and “could”. By their very nature, forward-looking statements involve numerous assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that our assumptions may not be correct, and that our strategic goals will not be achieved. A variety of factors, many of which are beyond our control, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, but are not limited to, general business and economic conditions in Canada, including housing market conditions, the volatility and level of liquidity in financial markets, fluctuations in interest rates and currency values, the volatility and level of various commodity prices, changes in monetary policy, changes in economic and political conditions, material changes to trade agreements, transition to the Advanced Internal Ratings Based (AIRB) approach for regulatory capital purposes, legislative and regulatory developments, legal developments, the level of competition, the occurrence of natural catastrophes, outbreaks of disease or illness that affect local, national or international economies, changes in accounting standards and policies, information technology and cyber risk, the accuracy and completeness of information we receive about customers and counterparties, the ability to attract and retain key personnel, the ability to complete and integrate acquisitions, reliance on third parties to provide components of business infrastructure, changes in tax laws, technological developments, unexpected changes in consumer spending and saving habits, timely development and introduction of new products, and our ability to anticipate and manage the risks associated with these factors. It is important to note that the preceding list is not exhaustive of possible factors. Additional information about these factors can be found in the Risk Management section of our MD&A. These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. Any forward-looking statements contained in this document represent our views as of the date hereof. Unless required by securities law, we do not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by us or on our behalf. The forward-looking statements contained in this document are presented for the purpose of assisting readers in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes. Assumptions about the performance of the Canadian economy over the forecast horizon and how it will affect our business are material factors considered when setting organizational objectives and targets. In determining expectations for economic growth, we consider our own forecasts, economic data and forecasts provided by the Canadian government and its agencies, as well as certain private sector forecasts. These forecasts are subject to inherent risks and uncertainties that may be general or specific. Where relevant, material economic assumptions underlying forward-looking statements are disclosed within the Fiscal 2023 Outlook and Allowance for Credit Losses sections of our MD&A.

CWB Financial Group 2022 Annual Report | 15

NON-GAAP MEASURES We use a number of financial measures and ratios to assess our performance against strategic initiatives and operational benchmarks. Some of these financial measures and ratios do not have standardized meanings prescribed by Generally Accepted Accounting Principles (GAAP) and may not be comparable to similar measures presented by other financial institutions. Non-GAAP financial measures and ratios provide readers with an enhanced understanding of how we view our financial performance. These measures and ratios may also provide the ability to analyze trends related to profitability and the effectiveness of our operations and strategies, and are disclosed in compliance with National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . To calculate non-GAAP financial measures, we exclude certain items from our financial results prepared in accordance with IFRS. Adjustments relate to items which we believe are not indicative of underlying operating performance. Our non-GAAP financial measures include: • Adjusted non-interest expenses – total non-interest expenses, excluding pre-tax accelerated amortization of previously capitalized AIRB assets, amortization of acquisition-related intangible assets, and acquisition and integration costs. Accelerated amortization of previously capitalized AIRB assets is a result of a reduction in estimated useful lives of certain previously capitalized AIRB assets. Acquisition and integration costs include direct and incremental costs incurred as part of the execution and integration of the acquisition of the businesses of T.E. Wealth and Leon Frazer & Associates that occurred in June 2020. • Adjusted common shareholders’ net income – total common shareholders’ net income, excluding the accelerated amortization of previously capitalized AIRB assets, amortization of acquisition-related intangible assets, and acquisition and integration costs, net of tax. • Pre-tax, pre-provision income – total revenue less adjusted non-interest expenses.

The following table provides a reconciliation of our non-GAAP financial measures to our reported financial results.

Table 1 - Non-GAAP Measures ($ thousands)

For the three months ended

For the year ended

October 31 2022

October 31 2021

October 31 2022

October 31 2021

Non-interest expenses

166,783

140,802

581,777

508,718

Adjustments (before tax): Accelerated amortization of previously capitalized AIRB assets

(16,555)

Amortization of acquisition-related intangible assets

(2,557)

(2,032)

(10,212)

(8,073)

Acquisition and integration costs

(361)

(893)

(626)

(1,761)

Adjusted Non-interest Expenses

147,310

137,877

554,384

498,884

Common shareholders' net income

67,687

89,998

310,302

327,471

Adjustments (after-tax): Accelerated amortization of previously capitalized AIRB assets (1)

12,549

Amortization of acquisition-related intangible assets (2)

1,913

1,485

7,641

5,901 1,329

Acquisition and integration costs (3)

270

674

470

Adjusted Common Shareholders' Net Income

82,419

92,157

330,962

334,701

Total revenue

279,838

260,624

$ 1,076,287

1,016,033

Less: Adjusted non-interest expenses (see above)

147,310

137,877

554,384

498,884

Pre-tax, Pre-provision Income

132,528

122,747

521,903

517,149

(1) Net of income tax of $4,006 for the three months ended October 31, 2022 (Q4 2021 – nil) and $4,006 for the year ended October 31, 2022 (2021 – nil). (2) Net of income tax of $644 for the three months ended October 31, 2022 (Q4 2021 – $547) and $2,571 for the year ended October 31, 2022 (2021 – $2,172). (3) Net of income tax of $91 for the three months ended October 31, 2022 (Q4 2021 – $219) and $156 for the year ended October 31, 2022 (2021 – $432).

Non-GAAP ratios are calculated using the non-GAAP financial measures defined above. Our non-GAAP ratios include: • Adjusted earnings per common share – diluted earnings per common share calculated w ith adjusted common shareholders’ net income.

• Adjusted return on common shareholders’ equity – annualized adjusted common shareholders’ net income divided by average common shareholders’ equity, which is total shareholders’ equity excluding preferred shar es and limited recourse capital notes.

• Efficiency ratio – adjusted non-interest expenses divided by total revenue.

• Operating leverage – growth rate of total revenue less growth rate of adjusted non-interest expenses.

Supplementary financial measures are measures that do not have definitions prescribed by GAAP and do not meet the definition of a non-GAAP financial measure or ratio. Our supplementary financial measures include: • Return on assets – annualized common shareholders’ net income divided by avera ge total assets.

• Net interest margin – annualized net interest income divided by average total assets.

• Return on common shareholders’ equity – annualized common shareholders’ net income divided by average common shareholders’ equity.

• Write-offs as a percentage of average loans – annualized write-offs divided by average total loans.

• Book value per common share – total common shareholders’ equity divided by total common shares outstanding.

• Branch-raised deposits – total deposits excluding broker term and capital market deposits.

• Provision for credit losses on total loans as a percentage of average loans – annualized provision for credit losses on loans, committed but undrawn credit exposures and letters of credit divided by average total loans. Provisions for credit losses related to debt securities measured at fair value through other comprehensive income (FVOCI) and other financial assets are excluded.

• Provision for credit losses on impaired loans as a percentage of average loans – annualized provision for credit losses on impaired loans divided by average total loans.

16 | CWB Financial Group 2022 Annual Report

• Provision for credit losses on performing loans as a percentage of average loans – annualized provision for credit losses on performing loans (Stage 1 and 2) divided by average total loans.

• Average balances – average daily balances.

WHO WE ARE CWB is the only full-service bank in Canada with a strategic focus to meet the unique financial needs of businesses and their owners. We provide our nation-wide clients with full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services. Clients choose CWB for a differentiated level of service through specialized expertise, customized solutions, and faster response times relative to the competition. Our people take the time to understand our clients and their business, and work as a united team to provide holistic solutions and advice. We are firmly committed to the responsible creation of value for all our stakeholders and our approach to sustainability will support our continued success. GROWTH STRATEGY Our highly engaged teams operate within a client-centric and collaborative culture, with a core focus as the best full-service bank for business owners in Canada. We continue to transform our capabilities to offer a superior full-service client experience through a range of in-person and evolving digital channels. These improving capabilities have accelerated growth of full-service client relationships in targeted segments that fit within our strategic growth objectives and prudent risk appetite. Ongoing strategic execution will create long-term value for shareholders as we deliver strong growth of full-service clients and capitalize on the opportunities available to us as we continue to expand our geographic footprint outside of Western Canada, including an increased presence in the Ontario market.

Our differentiated market position and strategy has set the stage for CWB to deliver profitable long-term growth and enhance shareholder returns for years to come.

CWB Financial Group 2022 Annual Report | 17

FISCAL 2022 STRATEGIC HIGHLIGHTS Table 2 - Execution Against Strategic Priorities

Strategic execution during fiscal 2022

• Successfully launched a personal and small business digital banking platform. The small business platform can integrate with third party accounting platforms and provide our clients with predictive cash flow modelling. Incremental features, including the ability to fully digitally on-board small business clients and provide insights and simulation scenarios that enable small businesses to better understand and manage their cash flow needs and financial health of their operations, will be integrated into the platform next year. • Expanded our presence in the Ontario market, supported by the opening of our new Markham banking centre, building on the success of our first Ontario location in Mississauga in 2020. The targeted expansion in Ontario and enhancement of our digital capabilities supports our ability to deliver an unrivaled client experience to more business owners across Canada. • Consolidated and relocated our regional office and banking centre within downtown Vancouver to a new modern flagship banking centre. The highly visible location on West Georgia provides prominent branding, supports hybrid work, and integrates our business and personal banking, trust services and wealth management teams to provide an elevated client experience and capitalize on an opportunity to grow our market share in British Columbia. • Successfully harmonized our wealth management brands with the launch of CWB Wealth. The launch further integrates our acquired wealth management operations under one brand and strategically positions us to expand full-service client offerings and opportunities, and provide a unique client experience in Canadian private wealth advisory services. • Executed an investment commitment to participate in a venture capital fund managed by a global fintech-focused investor that inves ts in, and partners with, some of the world’s most innovative financial technology companies. Participation in this fund will provide actionable insights from exposure to emerging trends and partnership opportunities to further elevate our digital client experience and product offering. • Continued to make proactive and targeted investments in development and learning initiatives, recruitment programs and previously announced compensation adjustments to further support our culture and drive continued strong team member retention through a period of elevated competition for talent. • Launched three new employee-represented groups (ERGs) focused on supporting working parents/caregivers, early career professionals and Latin American cultures. Approximately one third of our employee’s actively participate in at least one of our eleven unique ERGs that support inclusion, diversity and mental health within our teams.

Transform and optimize our capabilities to create an unrivaled experience for our clients

Drive a positive and inclusive culture and employee experience to create value for our people and remain a career destination for top talent

• We were recognized:

o by Great Place to Work Canada® as one of this year’s top 20 Best Workplaces TM in Canada and one of the Best Workplaces TM for Hybrid Work; and, o in the Globe and Mail’s 2022 Women Lead Her e list, a benchmark that identifies best-in-class executive gender diversity in Canada. These awards reflect our commitment to advance an inclusive culture that puts people first and supports our position as a destination for top talent. • Delivered strong 14% annual loan growth in our general commercial loan portfolio as we executed on our strategic focus of expanding full-service client opportunities. General commercial loans now represent 35% of total loans, up from 33% one year ago. Expansion of full-service client opportunities also supported 8% growth in relationship-based, branch-raised deposits (1) . • Achieved robust 11% annual loan growth in Ontario, supported by strong momentum from our Mississauga and newly opened Markham banking centres. Ontario loans now represent 24% of total loans, up from 23% one year ago. • Released our inaugural Sustainability Report, demonstrating our continued commitment to develop and disclose our approach to the environmental, social and governance (ESG) factors that we identify as the most important to our clients, people, communities and investors. • Materially completed the development of revised AIRB tools, incorporating targeted enhancements and the final 2023 Capital Adequacy Requirements (CAR) guidelines. Next year, we will commence the integration of our revised AIRB tools into our business processes and data.

Optimize our business to create value for investors through profitable, long- term growth and sustainable returns

(1) Non-GAAP measure – refer to definition and detail provided on page 16.

18 | CWB Financial Group 2022 Annual Report

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