UNREALIZED GAINS AND LOSSES
Unrealized gains and losses related to debt securities and cash resources measured at FVOCI and equity securities designated at FVOCI are as follows:
As at October 31, 2021
Gross Unrealized Gains
Gross Unrealized Losses
Amortized Cost
Fair Value
Measured at FVOCI Interest bearing deposits with regulated financial institutions (2)
$
21,344 $
-
$
- $
21,344
Debt securities issued or guaranteed by Canada
3,001,582
420 209 362
39,712
2,962,290
A province or municipality
409,583 199,255
3,084
406,708 198,799
Other debt securities (3)
818
Total
$
3,631,764 $
991
$
43,614 $
3,589,141
As at October 31, 2020
Gross Unrealized Gains
Gross Unrealized Losses
Amortized Cost
Fair Value
Measured at FVOCI Interest bearing deposits with regulated financial institutions (2)
$
254,442 $
11
$
2 $
254,451
Debt securities issued or guaranteed by Canada
1,313,002
5,232 3,394 1,126
267
1,317,967
A province or municipality
964,084 376,377
63
967,415 377,244
Other debt securities (3) Designated at FVOCI Preferred shares
259
1,953
39
-
1,992
Total
$
2,909,858 $
9,802
$
591 $
2,919,069
(1) The amortized cost of debt securities and cash resources measured at FVOCI is net of an allowance for credit losses of $536 (October 31, 2020 – $349).
During the year ended October 31, 2021, we sold preferred shares with a fair value of $2,000 and an amortized cost of $1,953 (2020 – fair value of $16,690 and amortized cost of $24,695). Related to the sales, we reclassified cumulative after-tax realized gains of $35 from AOCI to retained earnings (2020 – losses of $6,124).
IMPAIRMENT
Impairment losses and recoveries on debt securities measured at FVOCI, estimated using an ECL approach, are recognized in the provision for credit losses in the consolidated statements of income and correspondingly reduce the accumulated changes in fair value recorded in OCI.
During the year ended October 31, 2021, credit losses of $187 (October 31, 2020 – $153) were recorded in the consolidated statements of income related to an increase in the estimated allowance for credit losses on performing debt securities measured at FVOCI, all of which were in Stage 1 as at October 31, 2021 and 2020.
6. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND PURCHASED UNDER RESALE AGREEMENTS Securities sold under repurchase agreements represent the sale of Government of Canada securities or United States Treasury securities by CWB effected with a simultaneous agreement to purchase them back at a specified price on a future date, which is generally short term. The difference between the proceeds of the sale and the predetermined cost to be paid on a resale agreement is recorded as deposit interest expense. Securities purchased under resale agreements represent the purchase of Government of Canada or United States Treasury securities by CWB effected with a simultaneous agreement to sell them back at a specified price on a future date, which is generally short term. The difference between the cost of the purchase and the predetermined proceeds to be received on a resale agreement is recorded as securities interest income.
Securities sold under repurchase agreements and purchased under resale agreements are classified and measured at amortized cost in the consolidated balance sheets.
CWB Financial Group 2021 Annual Report | 79
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