REGULATORY CAPITAL AND CAPITAL ADEQUACY RATIOS Table 21 – Capital Structure and Regulatory Ratios at Year End ($ thousands)
Change from 2022
2023
2022
Regulatory Capital, Net of Deductions Common equity Tier 1
$
3,157,495 3,732,495 4,388,046
$
2,861,456 3,436,456 3,925,118
$
296,039 296,039 462,928
Tier 1 Total
Capital Ratios Common equity Tier 1
9.7 %
8.8 %
90 bp
Tier 1 Total
11.5 13.5
10.6 12.1
90
140
Leverage Ratio
8.5
8.1
40
bp – basis point
Our CET1 capital ratio of 9.7% increased 90 basis points compared to last year reflecting the impact of retained earnings growth, a reduction in accumulated other comprehensive loss related to an increase in unrealized gains on debt securities measured at FVOCI, the adoption of CAR 2023 guidelines and common shares issued under our ATM program in the first quarter of the year, partially offset by risk-weighted asset growth.
The Tier 1 capital ratio of 11.5% increased 90 basis points from last year, primarily due to the proportional impact of the same factors noted above.
The total capital ratio of 13.5% increased 140 basis points from last year due to the issuance of $150 million Series H NVCC subordinated debentures in the year and the proportional impact of the same factors noted above. Our Basel III leverage ratio of 8.5% was very strong compared to the regulatory minimum of 3.0%, where a higher ratio indicates lower leverage. BOOK VALUE PER COMMON SHARE Book value per common share at October 31, 2023 of $35.79 was up 7% from $33.48 last year. Compared to last year, the increase primarily reflects retained earnings growth and lower accumulated other comprehensive losses related to improvement in the fair value of our debt securities, partially offset by an increase in common shares outstanding.
CWB Financial Group 2023 Annual Report | 35
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