Q2 F2023 - Bank of the West Contribution & Financial Results
Bank of the West Purchase Accounting impacts
•
Bank of the West acquisition related valuation activities are largely complete
•
The rate mark hedge was effective in neutralizing the impact of interest rate changes on BMO's capital requirements at
closing and in managing BMO's future P&L profile
($B) As at Feb 1, 2023
USD
CDE
Initial Allowance for Credit Losses (PCL - Performing)
0.5
0.7
Core Deposit and other Intangible Assets
2.2
2.9
Goodwill
8.1
10.51
Fair Value Marks / Discounts
Fair value marks Loans and Deposits
(2.3)
(3.0)
Discount on Securities
(2.6)
(3.5)
Rate Mark Hedge
4.4
5.7
This slide contains forward-looking statements, please refer to the Caution Regarding Forward-Looking Statements on slide 2
See the Significant Events section of BMO's Second Quarter 2023 MD&A for more information
1 To mitigate changes in the Canadian dollar equivalent of the purchase price between announcement and close, we entered into forward contracts, which qualified for hedge accounting. Changes in the fair value of
these forward contracts of $269 million (after-tax) was accounted for as a reduction of the Canadian dollar equivalent of the purchase price.
BMOM
Financial Results May 24, 2023
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