CWBFG Annual Report 2023

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

Powered by