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, 2022
As at October 31, 2021
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
$
6,951,826 $
12,482 $
140 $
12,342 $ 6,395,524 $
11,651 $
485 $
11,166
Business General commercial loans Commercial mortgages (2)
12,430,457 7,446,273 5,546,163
82,879 36,435 22,965 11,912
32,469
50,410 29,701 16,177 11,352
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
6,734 6,788
5,224 5,587
Equipment financing and leasing
Real estate project loans
3,199,515
560
2,871,195
20,343
920
Oil and gas production loans
331,388
-
-
-
413,500
-
-
-
28,953,796
154,191
46,551
107,640
26,505,427
190,673
38,812
151,861
Total
$ 35,905,622 $
166,673 $
46,691 $
119,982 $ 32,900,951 $
202,324 $
39,297 $
163,027
(1) Gross impaired loans include foreclosed assets with a carrying value of $2,010 (October 31, 2021 – $2,253). We pursue timely realization on foreclosed assets and do not use the assets for our 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, 2022
As at October 31, 2021
Gross Impaired Amount
Net Impaired Loans
Gross Impaired Amount
Net Impaired Loans
Stage 3 Allowance
Stage 3 Allowance
Alberta
$
75,398 $
20,980 $
54,418 $
88,390 $
17,457 $
70,933 39,517 34,316
Ontario
51,369 21,029
22,192
29,177 20,330
56,858 37,001
17,341
British Columbia
699
2,685
Saskatchewan
4,757 4,628 1,632 7,860
1,165
3,592 3,871 1,324 7,270
6,288 2,965
869 549 195 201
5,419 2,416
Quebec
757 308 590
Manitoba
812
617
Other
10,010
9,809
Total
$
166,673 $
46,691 $
119,982 $
202,324 $
39,297 $
163,027
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, 2022
Total
Personal Business
$
62,119 $
28,338 $
1,152 $
91,609
112,008
48,970
45,845
206,823
Total
$
174,127 $
77,308 $
46,997 $
298,432
As at October 31, 2021
$
98,893 $
34,499 $
3,716 $
137,108
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 2022 Annual Report | 81
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