Reconciliation A reconciliation of changes in the allowance for credit losses related to loans, committed but undrawn credit exposures and letters of credit follows:
As at October 31, 2023
Performing
Impaired
Stage 1
Stage 2
Stage 3
Total
Personal Balance at beginning of year
$
1,047 $
2,778 $
140
$
3,965
Transfers to (from) (1) Stage 1
290
(290)
- -
- - -
Stage 2 Stage 3
(613)
613
(1)
(84)
85
Net remeasurement (2)
(838)
(337)
486
(689)
New originations
1,771
-
-
1,771
Derecognitions and maturities
(164)
(540)
(27)
(731)
Provision for (reversal of) credit losses (3)
445
(638)
544
351
Write-offs
- -
- -
(796)
(796)
Recoveries
154
154
Balance at end of year
1,492
2,140
42
3,674
Business Balance at beginning of year
$
50,239 $
66,373 $
46,551
$
163,163
Transfers to (from) (1) Stage 1
24,530
(24,530)
- -
- - -
Stage 2 Stage 3
(17,883)
17,883
(150)
(4,467)
4,617
Net remeasurement (2)
(42,546)
20,927
15,848
(5,771)
New originations
73,978
-
-
73,978
Derecognitions and maturities
(21,796)
(14,077)
(5,666)
(41,539)
Provision for (reversal of) credit losses (3)
16,133
(4,264)
14,799
26,668
Write-offs
- -
- -
(36,254)
(36,254)
Recoveries
18,061
18,061
Balance at end of year
66,372
62,109
43,157
171,638
Total Allowance for Credit Losses (4)
$
67,864 $
64,249 $
43,199
$
175,312
Represented by: Loans
$
65,965 $
63,399 $
43,199
$
172,563
Committed but undrawn credit exposures and letters of credit (5)
1,899
850
-
2,749
Total Allowance for Credit Losses (4)
$
67,864 $
64,249 $
43,199
$
175,312
(1) Represents stage movements prior to remeasurement of the allowance for credit losses. (2) Represents credit risk changes as a result of significant increases in credit risk, changes in credit risk that did not result in a transfer between stages, changes in model inputs and assumptions, including changes in forward-looking macroeconomic forecasts and qualitative adjustments, and changes due to partial repayment. (3) Included in the provision for credit losses in the consolidated statements of income. (4) Allowance for credit losses related to debt securities measured at FVOCI, cash resources and other financial assets classified at amortized cost were excluded from the table above. See Note 4 for details related to the allowance for credit losses on debt securities measured at FVOCI. Cash resources and other financial assets classified at amortized cost are presented in the consolidated balance sheets, net of allowance for credit losses. (5) Included in other liabilities in the consolidated balance sheets.
80 | CWB Financial Group 2023 Annual Report
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