Cross-laminated timber (CLT) has become popular for its material properties and associated environmental benefits. CLT panels, either using platform-type or balloon-framed methods, can be utilized as part of the lateral load resisting system. In this paper, the seismic performance of a two-story balloon frame CLT school building was investigated. The building was designed for a Vancouver site based on the 2015 National Building Code of Canada seismic provisions. A three-dimensional finite element model of the building was developed in OpenSees where the energy-dissipative connections (i.e., hold-down, spline joint, etc.) were modeled and calibrated against tests. To properly account for the local seismic hazard, a probabilistic seismic hazard analysis was conducted for the building site to select ground motion records for shallow crustal earthquakes, subduction inslab and interface earthquakes. Incremental dynamic analyses were carried out to derive fragility curves for different drift limits and collapse capacity with respect to different intensity levels. The results at the design intensity level showed a maximum inter-storey drift ratio of 0.51% on average for both directions, well below the applicable 2% drift limit. The median collapse capacity was determined as 2.41 g. Considering the design intensity of 0.76 g, a collapse margin ratio of 3.18 was calculated.