Canadian Western Bank to settle National Leasing Group Inc. contingent consideration

EDMONTON, May 16, 2012 /CNW/ - Canadian Western Bank (TSX: CWB) ("CWB" or the "Bank") today announced its execution of agreements to purchase 97 per cent of the preferred shares of National Leasing Group Inc. (the "Preferred Shares") ("National Leasing"), with further agreements to acquire the balance expected prior to closing. In exchange for all Preferred Shares, the Bank will issue $63.5 million of CWB common shares.

On February 1, 2010, CWB acquired 100 per cent of the common shares of National Leasing. The initial acquisition included contingent consideration equal to 23.75 per cent of the agreed upon enterprise value and was represented by National Leasing Preferred Shares. Under the original agreement, the Preferred Shares participated in National Leasing's future earnings growth.

"We believe this deal is a win-win for CWB shareholders and all other parties involved," said Larry Pollock, President and Chief Executive Officer of CWB. "In addition to being a great cultural fit, the contributions of National Leasing continue to add tremendous value to CWB Group. The company's earnings have effectively doubled since 2009 and there remains significant growth potential looking forward."

"Completing this ownership transition earlier than expected supports our strategy to realize additional business synergies between our group of companies," continued Mr. Pollock. "It will simplify financial reporting with the elimination of future accounting charges related to the contingent consideration. The cost of the purchase is consistent with CWB's recorded liability at April 30, 2012, and no material changes are expected to quarterly adjusted net income. The full payment in CWB common shares was a requirement of the vendors to complete the deal and will support future growth by augmenting the Bank's already solid regulatory capital position."

The number of CWB common shares to be issued of 2,256,868 is based on the volume weighted average share price as reported by Bloomberg LP for the 20 trading days from April 18 to May 15, 2012, inclusive. Finalization of this transaction will increase the Bank's Tier 1 regulatory capital ratio by approximately 45 basis points. The purchase is expected to close May 29, 2012.

About Canadian Western Bank Group
Canadian Western Bank offers a full range of business and personal banking services across the four western provinces and is the largest publicly traded Canadian bank headquartered in Western Canada. The Bank, along with its operating affiliates, National Leasing Group Inc., Canadian Western Trust Company, Valiant Trust Company, Canadian Direct Insurance Incorporated, Adroit Investment Management Ltd. and Canadian Western Financial Ltd., collectively offer a diversified range of financial services across Canada and are together known as the Canadian Western Bank Group. The common shares of Canadian Western Bank are listed on the Toronto Stock Exchange under the trading symbol "CWB". The Bank's Series 3 Preferred Shares trade on the Toronto Stock Exchange under the trading symbol "CWB.PR.A". Refer to www.cwbankgroup.com for additional information.

Kirby Hill, CFA
Director, Investor and Public Relations
Canadian Western Bank
Phone: [phone]
Email: [email protected]

Tracey Ball, FCA
Executive Vice President and CFO
Canadian Western Bank
Phone: [phone]