CWBFG Annual Report 2022

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

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