4. SECURITIES Debt securities measured at FVOCI have contractual cash flows that satisfy the requirements of the SPPI test and are purchased with the objective of collecting contractual cash flows and selling the assets in response to, or in anticipation of, changes in interest rate, credit or foreign currency risk, funding sources, terms or to meet liquidity requirements. Debt securities measured at FVOCI are initially recorded at fair value, net of transaction costs. They are subsequently measured at fair value, with unrealized gains and losses recorded in OCI, net of tax, until the security is sold. Gains and losses realized upon sale of the securities are recorded in gains (losses) on securities, net in the consolidated statements of income. Interest income earned is recorded using the effective interest method. Debt securities measured at FVTPL are purchased with the objective of collecting contractual cash flows, however, the cash flows for these securities do not satisfy the requirements of the SPPI test. Gains and losses realized upon sale of the securities are recorded in gains (losses) on securities, net in the consolidated statements of income. Interest income earned is recorded using the effective interest method.
Equity securities are equity instruments held for long-term investment purposes. We have made the election to measure equity securities at FVOCI. Unrealized gains and losses are recorded in OCI, net of tax, and are subsequently transferred directly to retained earnings.
The analysis of securities at carrying value, by type and maturity or reprice date, follows:
Maturity/Reprice
3 to 5 Years
Greater than 5 Years
As at October 31 2023
As at October 31 2022
Within 1 Year
1 to 3 Years
No Specific Maturity
Measured at FVOCI Interest bearing deposits with financial institutions (1)
$
149,285 $
- $
- $
- $
- $
149,285 $
26,833
Debt securities issued or guaranteed by Canada
1,844,492
1,054,200
217,125
152,659
- - - -
3,268,476
3,910,821
A province or municipality
424,577 102,201
15,736 27,527
- - -
- - -
440,313 129,728
448,947 148,722
Other debt securities issued by United States Treasury
Other debt securities Measured at FVTPL Other debt securities (2) Designated at FVOCI Other equity securities
55,388
-
55,388
-
-
-
-
14,901
-
14,901
-
-
-
-
-
-
10,305
Total
$ 2,575,943 $
1,097,463 $
217,125 $
167,560 $
- $ 4,058,091 $ 4,545,628
(1) Included in cash resources on the consolidated balance sheets. (2) Gains (losses) are recorded in other non-interest income in the consolidated statements of consolidated income.
CWB Financial Group 2023 Annual Report | 73
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