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, 2023
As at October 31, 2022
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
$
7,117,829 $
20,766 $
42 $
20,724 $
6,951,826 $
12,482 $
140 $
12,342
Business General commercial loans Commercial mortgages (2)
13,681,133 7,105,877 5,722,326
91,530
19,070 17,458
72,460 86,285 33,392
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
103,743
6,734 6,788
Equipment financing and leasing
39,976
6,584
Real estate project loans
3,098,229
9,961
45
9,916
3,199,515
560
Oil and gas production loans
484,456
-
-
-
331,388
-
-
-
30,092,021
245,210
43,157
202,053
28,953,796
154,191
46,551
107,640
Total
$ 37,209,850 $
265,976 $
43,199 $
222,777 $ 35,905,622 $
166,673 $
46,691 $
119,982
(1) Gross impaired loans include foreclosed assets with a carrying value of $2,712 (October 31, 2022 – $2,010). 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, 2023
As at October 31, 2022
Gross Impaired Amount
Net Impaired Loans
Gross Impaired Amount
Net Impaired Loans
Stage 3 Allowance
Stage 3 Allowance
Alberta
$
130,141 $
22,680 $
107,461 $
75,398 $
20,980 $
54,418 20,330 29,177
British Columbia
59,099 44,904 16,939
8,665 5,855 4,516
50,434 39,049 12,423
21,029 51,369
699
Ontario
22,192
Saskatchewan
4,757 4,628 1,632 7,860
1,165
3,592 3,871 1,324 7,270
Quebec
2,277 6,684 5,932
229 655 599
2,048 6,029 5,333
757 308 590
Manitoba
Other
Total
$
265,976 $
43,199 $
222,777 $
166,673 $
46,691 $
119,982
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, 2023
Total
Personal Business
$
114,397 $
57,326 $
4,059 $
175,782 202,118
116,991
58,998
26,129
Total
$
231,388 $
116,324 $
30,188 $
377,900
As at October 31, 2022
$
174,127 $
77,308 $
46,997 $
298,432
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 the borrower’s credit quality, including any changes since the inception of the loan ; • 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, and our construction of the scenarios and their weights.
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.
78 | CWB Financial Group 2023 Annual Report
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