CWBFG Annual Report 2023

13. OTHER LIABILITIES

As at October 31 2023

As at October 31 2022

Accounts payable and accrued liabilities

$

393,246 $

438,180 197,486 98,795 21,800

Accrued interest payable

344,465

Lease liabilities (1)(2)

93,456

Derivative collateral payable

8,170 5,261 2,749

(Note 25)

Deferred tax liabilities

6,567 5,310 4,000 3,467 1,779

(Note 19)

Allowance for committed but undrawn credit exposures and letters of credit

(Note 6)

Income taxes payable

15,679

(Note 19)

Deferred revenue

2,599

Accrued swap payable

20,912

Other

2,864

12,215

Total

$

889,401 $

789,599

(1) The discounted value of lease liabilities is presented above. Future minimum commitments related to our lease liabilities on an undiscounted basis are $14,979 for fiscal 2024, $16,355 for fiscal 2025, $11,929 for fiscal 2026, $10,120 for fiscal 2027, $9,457 for fiscal 2028, and $48,102 for fiscal 2029 and thereafter. (2) Interest expense on lease liabilities totaled $3,369 for the year ended October 31, 2023 (2022 – $3,159).

14. DEBT A) DEBT SECURITIES

A summary of outstanding debt related to the securitization of equipment financing leases and loans and residential mortgages by contractual maturity date follows:

As at October 31 2023

As at October 31 2022

Within 1 Year

1 to 3 Years

3 to 6 Years

Securitized leases and loans

$

635,838 $

1,013,416 $

371,658 $

2,020,912 $

1,935,812 1,148,279

Securitized residential mortgages

315,427

746,263

233,119

1,294,809

Total

$

951,265 $

1,759,679 $

604,777 $

3,315,721 $

3,084,091

B) NON-VIABILITY CONTINGENT CAPITAL (NVCC) SUBORDINATED DEBENTURES

Financing costs relating to the issuance of subordinated debentures are amortized over the expected life of the related subordinated debenture using the effective interest method.

The following qualify as bank debentures under the Bank Act and are subordinate in right of payment to all deposit liabilities. All redemptions are subject to the approval of OSFI.

Earliest Date Redeemable by CWB at Par

Interest

Maturity Date

Reset Spread (1)

Rate (1)

Par Value (2)

199 bp

$

Series F

3.668%

June 11, 2029

June 11, 2024

250,000

410.2 bp

Series G

4.840%

June 29, 2030

June 29, 2025

125,000

291 bp December 22, 2027

Series H

5.937% December 22, 2032

150,000

(1) The interest rate will be paid until the earliest date redeemable, after which the interest rate will reset quarterly at the reset spread basis points over the then three- month Bankers’ Acceptance rat e for Series F and Series G and CORRA for Series H. (2) The balance reported on the consolidated balance sheet as at October 31, 2023 includes unamortized financing costs related to the issuance of subordinated debentures of $1,562 (2022 - $1,198). bp – basis points On December 22, 2022, we issued $150,000 of NVCC subordinated debentures with a fixed annual interest rate of 5.937% until December 22, 2027. Thereafter, the rate will be set quarterly at the daily compounded CORRA plus 291 basis points until maturity on December 22, 2032. We can redeem the debentures on or after December 22, 2027 subject to the prior written consent of OSFI. Upon the occurrence of a trigger event (as defined by OSFI), each subordinated debenture will be automatically converted, without the consent of the holders, into CWB common shares. Conversion to common shares will be determined by dividing the debenture conversion value (the principal amount of the debenture plus accrued but unpaid interest times a multiplier of 1.5) by the common share value (the greater of (i) the floor price of $5.00 and (ii) the current market price calculated as the volume weighted average trading price for the ten consecutive trading days ending on the day immediately prior to the date of conversion).

CWB Financial Group 2023 Annual Report | 91

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