CBWBF - Canadian Western Continues To Deliver On A Successful Long-Term Transformation Plan

• Canadian Western reported surprisingly strong fiscal third quarter earnings, as a significant improvement in deposit costs offset yield pressures and costs remained well-controlled.
• Credit looks okay and I'm not concerned about the reserve situation, though certain areas like the hotel franchise lending portfolio are worth monitoring.
• Management continues to execute on its plan to transform Canadian Western into a national business lender with multiple specialized lending verticals like leasing and franchise financing.
• Improving the deposit cost base by continuing to grow branch-based deposits remains an area I'd like to see further improvement.
• Taken in isolation, Canadian Western is doing well, is undervalued, and should be positively leveraged to a recovering Canadian economy, but the downturn isn't over and there are even cheaper bank stocks elsewhere.

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