CWBFG Annual Report 2023

Management’s Discussion and Analysis

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

Financial Instruments and Other Instruments................................36 Off-Balance Sheet...........................................................................36

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

Summary of Quarterly Results and Fourth Quarter..................37 Fourth Quarter of 2023...................................................................37

CWB Financial Group Performance.......................................18 Select Financial Highlights.............................................................18 Summary of Operations..................................................................19 Fiscal 2024 Outlook .......................................................................20 Net Interest Income........................................................................21 Non-Interest Income.......................................................................22 Non-Interest Expenses and Efficiency Ratio...................................23 Income Taxes..................................................................................24 Comprehensive Income .................................................................24 Cash and Securities........................................................................25 Loans............................................................................................... 26 Credit Quality.................................................................................28 Deposits and Funding.....................................................................31 Other Assets and Other Liabilities..................................................32 Liquidity Management....................................................................32 Capital Management......................................................................34

Accounting Policies and Estimates........................................38 Critical Accounting Estimates........................................................38 Changes In Accounting Policies and Financial Statement Presentation..................................................................40 Future Changes In Accounting Policies..........................................40 Risk Management...............................................................41 Top Emerged and Emerging Risks..................................................41 Risk Management Overview...........................................................42 Risk Universe - Report on Principal Risks........................................46 Other Risk Factors..........................................................................57 Share and Distribution Information.......................................58 Related Party Transactions...................................................58 Controls and Procedures.....................................................58

14 | CWB Financial Group 2023 Annual Report

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