Management Presentation

1. Management Presentation July 2013

2. Cautionary Note Regarding Forward-Looking Information • Certain statements contained in this management presentation contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information in this management presentation includes, but is not limited to, statements with respect to the use of proceeds of the Offering; the completion of the Offering; the Bank's capital plan; the Bank's future capital actions; the Bank's goals, objectives, strategies and future actions, including in respect of, but not limited to, the Bank's bulk financing, private label credit card and bankruptcy trustee deposit programs; the introduction of new products and services and the enhancement of existing products and services; sources and sustainability of earnings; targeted and expected financial results; and the outlook for the Bank's business, the Bank's industry, and the Canadian and global economy. Actual results may vary from the forward-looking information. • By their very nature, forward-looking information involves numerous factors and assumptions, including, without limitation, the expectations and beliefs of management; the successful completion of the Offering; adequate supply and demand for the Bank's products and services; the availability of deposits and the Bank's ability to access same on reasonable terms; the Bank maintaining its commercial relationships; that management's experience enables it to properly manage risks, react appropriately to changes in the industry, and operate the Bank's business effectively; and, that no significant event occurs outside of the Bank's normal course of business. Although the Bank considers these factors and assumptions to be reasonable based on information currently available, such factors and assumptions are not exhaustive and may prove to be incorrect. Also, forward-looking information is subject to known and unknown risks, uncertainties and other factors, many of which are beyond the Bank's control, and may cause the actual results, level of activity, performance, expectations, or achievements of the Bank to be materially different from those expressed or implied by such forward-looking information. • The Bank believes that the expectations reflected in the forward-looking information are reasonable but no assurances can be given, and such forward-looking information included in this management presentation should not be unduly relied upon. These statements speak only as of the date of this management presentation. Except as may be required by law, the Bank does not intend, and does not assume any obligation, to update forward-looking information, whether as a result of new information, future events or otherwise.

3. I. Overview of the Opportunity II. Key Investment Highlights Discussion Agenda III. Financial Overview IV. Question & Answer

4. Overview of the Opportunity Section I

5. Overview of the Bank Overview of Pacific & Western Bank Office Locations • Schedule I Chartered Bank with $1.4 billion in assets • Founded in 1979 as Pacific & Western Trust Corporation • Became a Schedule I Canadian Chartered Bank on August 1, 2002 • Member institution of the Canada Deposit Insurance Corporation (“CDIC”) • CMHC-approved lender • Focuses on raising deposits without branches, through deposit brokers, and reinvests these funds in loans and leases in target markets • Key lending segments include commercial real estate lending, bulk finance, corporate loans and leases, public sector, and credit card operations • 75 full-time employees Waterloo Saskatoon London(Headquarters) Organizational Structure (Pre-Offering) Key Metrics (as at April 30, 2013 unless otherwise stated) 100% 100% (2) • Calculated using the Basel III (all-in basis) framework. • Versabanq holds title to the asset and deposit management software, which was licensed to PWB for a one-time license fee of $3 million (plus taxes). Pursuant to this agreement, the Bank has been granted a non-exclusive, worldwide, perpetual, fully paid-up, royalty-free, and irrevocable license in respect of the software.

6. Overview of Products and Services • As at October 31, 2012, assets in the corporate loans portfolio totalled $187.6 million (12% of total assets) and assets in the corporate leases portfolio totalled $71.1 million (5% of total assets).

7. Capital Plan & Recent Developments • This Offering is being implemented as part of the Bank's 2013 capital plan • Key objectives are to: • Improve the quality of the Bank's regulatory capital in response to Basel III capital requirements; • Enhance the operating performance of the Bank through the redemption of a portion of the costly subordinate debt issued by the Bank; and • Reduce the Bank's dependence on PWC for future capital requirements

8. Key Investment Highlights Section II

9. Key Investment Highlights 1 2 3 4 Schedule I Bank Servicing Target Markets Diverse and Established Sources of Funding Low Loan Losses Scalable Branchless Model Promotes Efficiency

10. Schedule I Bank Servicing Target Markets 1 • PWB focuses on raising deposits without branches, through deposit brokers, and reinvests these funds in loans and leases in the Bank's target markets • The Bank aims to differentiate itself and reduce direct competition by focusing on the provision of select lending services to targeted borrowers in specific geographic markets, following what management believes to be prudent lending practices • Key lending segment is commercial lending, which is comprised commercial real estate lending, bulk finance, corporate loans and leases, and public sector lending • Other lending segment is credit card operations, which consist of its private label credit card program with Home Hardware Loan Portfolio by Geography Loan Portfolio by Asset Class Note: (i) 2.4% relates to Saskatchewan and Manitoba, collectively; (ii) 3.5% relates to Northwest Territories, Nunavut and Yukon, collectively; and (iii) 3.1% relates to Canada's Atlantic provinces, collectively.

11. Diverse and Established Sources of Funding 2 • Funding sources are geographically diversified and are comprised of over 120 brokerage firms that include those owned by some of the largest financial institutions in Canada • Established long-term relationships (11 years on average) with deposit brokers located across Canada • PWB has developed software and systems that enable it to efficiently process a large volume of deposits through these deposit brokers with a minimum number of employees • The Bank endeavors to include small, medium and large-sized brokers in its funding activities, not only to diversify its deposit sources, but also to secure a broad spectrum of deposit terms within the portfolio to establish a natural hedge against interest rate risk • Partnership with a leading provider of insolvency administration software in Canada in 2012 represents a new low cost, stable and sustainable source of demand deposits Distribution of Broker Offices and Advisors

12. Low Loan Losses 3 • Lending portfolio is primarily comprised of multi-family residential, commercial, corporate, public sector and land / construction loans and leases to, what management believes are, high quality borrowers • No exposure to subprime asset-backed securities • The Bank believes that its lending practices are prudent, and have resulted in a history of low loan losses, as evidenced by loan loss provisions as a percentage of average loans (0.04% for the fiscal year ending October 31, 2012, 0.03% and -0.12% for fiscal 2011 and 2010 respectively) • By minimizing its loan losses and percentage of gross impaired loans to total loans, the Bank has been able to keep its management team focused on servicing its customers and growing its business Gross Impaired Loans to Total Loans Provision for Credit Losses as a % ofAverage Total Loans

13. Scalable Branchless Model Promotes Efficiency 4 • The Bank's branchless business model promotes efficiency in its deposit gathering activities • By raising deposits through deposit brokers, including bank-owned brokerage firms and financial advisors, the Bank has not had to make a significant investment in physical infrastructure and human resources • Deposit and asset management operations are administered by state-of-the-art software systems that are scalable and customized specifically to support the Bank's business model • These attributes reduce the Bank's operating costs and allow the Bank to provide competitively priced financial products and services to customers within target markets, while still achieving favorable lending spreads

14. Bulk Financing Program • Partnership with small and medium-sized originators of leases and loans across Canada • PWB purchases eligible contracts from approved vendors (typically established, mid-sized leasing companies in the small-ticket leasing business), but can also be sourced directly from borrowers • Bank has in place cash collateral designed to reduce the risk associated with this program • At April 30, 2013, the Bank's bulk financing portfolio totalled $137.8 million compared to $80.7 million a year ago, an increase of 70% • Initiative was launched in January 2012 to facilitate the Bank's entry into consumer financing • Allows the Bank to gain access to Home Hardware's nationally-recognized brand, to provide financing for over 100,000 home improvement products and services offered by the Home Hardware dealers • As at October 31, 2012, assets in this portfolio totaled $23.4 million (2% of PWB’s total assets) and gross revenue from these assets during fiscal 2012, in the form of interest income and fees, was $1.1 million (2% of PWB’s total gross revenue) • As at April 30, 2013, credit card receivables, net of new fundings and repayments, grew to $23.8 million Home Card Program Trustee Deposits • Provides access to low cost, stable and sustainable source of demand deposits that are controlled by Canadian insolvency trustees • PWB has partnered with a major Schedule I bank to provide cheque clearing, settlement and electronic fund transfer capabilities in connection with this initiative • Through this program, deposits are accessed by integrating the Bank's banking services applications with existing market-leading insolvency administrative software provided by a third party • At present, 13 trustee offices had opened approximately 100 accounts and six trustee offices are in the process of signing account opening agreements Key Growth Initiatives • The Bank has sought to increase its diversity (i) on the deposit side of its business via its bankruptcy trustee deposit program, and (ii) on the lending side through the addition of its bulk financing program and credit card program

15. Financial Overview Section III

16. Financial Snapshot of PWB • CET1 ratio is not applicable for prior periods as Basel III was adopted prospectively, effective Q1 2013. • Effective Q1 2013 capital ratios are calculated using the Basel III (all-in basis) framework. Prior periods’ capital ratios were calculated using the Basel II framework. Basel III and Basel II are not directly comparable.

17. Question & Answer Section IV

18. Supplementary Materials Appendix A

19. 1970 1979 1987 1993 2002 2010 2012 History of the Business PWB launches its retail operations with the Home Hardware Private Label Credit Card Pacific & Western Credit Corp. is incorporated on November, 1970 under the Companies Act (Alberta). PWC is continued under the Canada Business Corporations Act in March, 1987 On August 1, 2002, the Bank is granted a Schedule I Bank license and continued under the Bank Act PWB launches its Bulk Finance business Pacific & Western Bank of Canada is incorporated on June, 1979 under The Business Corporations Act (Saskatchewan). In January, 1993, a syndicate of investors, including the current President & Chief Executive Officer of the Bank, acquire PWC; PWC then acquires the Bank PWB launches its Trustee Deposit initiative

20. Management Team Overview • Senior management team is led by David Taylor, who has over 30 years of experience in the banking industry • Comprised of professionals with expertise in the areas of lending credit risk management, deposit gathering and management, finance and accounting, human resources, information technology, legal and enterprise risk management • Board of Directors, led by Chairman C. Scott Ritchie, has considerable experience in the banking industry • Possess a wide breadth of finance, audit, banking, legal, regulatory, and general business experience, which not only contributes to the accomplishment of the Bank's growth objectives, but also the effective management and oversight of core business risks

21. Financial Performance Appendix B

22. Selected Financial Information Net Interest Income (C$‘000s) (1) (1) Net Income (C$‘000s) (1) (1) • For the six months ended April 30. Note: Amounts for fiscal 2010 are presented on a CGAAP basis. All other amounts are presented on an IFRS basis.

23. Selected Financial Information (cont’d) Shareholder’s Equity (C$‘000s) Return on Average Equity (1) (1) • For the six months ended April 30. Note: Amounts for fiscal 2010 are presented on a CGAAP basis. All other amounts are presented on an IFRS basis.

24. Selected Financial Information (cont’d) Total Assets (C$M) Deposits (C$M) Note: Amounts for fiscal 2010 are presented on a CGAAP basis. All other amounts are presented on an IFRS basis.

25. Selected Financial Information (cont’d) Tier 1 Capital Ratio (1) Common Equity Tier 1 Ratio (1,2) n/a n/a n/a n/a Note: Amounts for fiscal 2010 are presented on a CGAAP basis. All other amounts are presented on an IFRS basis. • Effective Q1 2013 capital ratios are calculated using the Basel III (all-in basis) framework. Prior periods’ capital ratios were calculated using the Basel II framework. Basel III and Basel II are not directly comparable. • CET1 ratio is not applicable for prior periods as Basel III was adopted prospectively, effective Q1 2013.

26. Selected Financial Information (cont’d) Total Capital Ratio (1) Assets-to-Capital Multiple (1,2) Note: Amounts for fiscal 2010 are presented on a CGAAP basis. All other amounts are presented on an IFRS basis. • Effective Q1 2013 capital ratios are calculated using the Basel III (all-in basis) framework. Prior periods’ capital ratios were calculated using the Basel II framework. Basel III and Basel II are not directly comparable. • Assets-to-capital multiple is calculated on a transitional basis.