CWBFG Annual Report 2023

NON-INTEREST INCOME Table 4 – Non-interest Income ($ thousands)

2023

2022

Change from 2022

Wealth management services

$

61,202 45,187 10,723 10,442

$

61,928 40,449

$

(726)

(1) %

Credit related Trust services Retail services

4,738

12

9,991

732 178

7 2

10,264

Losses on securities, net

(52)

(67)

15

(22) (72)

Other (1)

3,795

13,746 136,311

(9,951) (5,014)

Total Non-interest Income

$

131,297

$

$

(4) %

(1) Primarily consists of foreign exchange gains/losses.

Non-interest income of $131 million was down 4% ($5 million) from the prior year primarily due to lower foreign exchange revenue recorded in ‘other’ non-interest income, which was elevated in the prior year due to a rapid and significant strengthening of the U.S. dollar. Higher credit related fees were driven by 4% annual loan growth and an increase in credit card administration fees, which were supported by the launch of our new business credit cards in partnership with Brim Financial. Higher trust services fees reflected an increase in transaction volumes in the current year, primarily driven by new CWB Trust Services client acquisitions and elevated activity from existing clients as they continue to re-balance their portfolios in the elevated interest rate environment. Fees from retail services were relatively consistent with the prior year, commensurate with relatively stable branch-raised deposit balances. Wealth management fees decreased 1% from the prior year, as higher investment management fees, associated with a growth in assets under management balances, were more than offset by lower wealth service fees, reflective of a reduction in transactional activity in the elevated interest rate environment. In line with our liquidity management strategies and risk appetite, we also recognized nominal losses on security sales in the current and prior years.

22 | CWB Financial Group 2023 Annual Report

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