CWBFG Annual Report 2023

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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