CWBFG Annual Report 2022

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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