UNREALIZED GAINS AND LOSSES
Unrealized gains and losses related to debt securities and cash resources measured at FVOCI and FVTPL, and equity securities designated at FVOCI are as follows:
As at October 31, 2023
Gross Unrealized Gains
Gross Unrealized Losses
Amortized Cost (2)
Fair Value
Measured at FVOCI Interest bearing deposits with financial institutions (1)
$
149,292 $
2
$
9 $
149,285
Debt securities issued or guaranteed by Canada
3,333,770
1,718
67,012
3,268,476
A province or municipality
444,545 134,434
71
4,303 4,706
440,313 129,728
Other debt securities issued by United States Treasury
-
Other debt securities Measured at FVTPL Other debt securities
55,305
85
2
55,388
12,494
2,569
162
14,901
Total
$
4,129,840 $
4,445
$
76,194 $
4,058,091
As at October 31, 2022
Gross Unrealized Gains
Gross Unrealized Losses
Amortized Cost (2)
Fair Value
Measured at FVOCI Interest bearing deposits with financial institutions (1)
$
26,833 $
-
$
- $
26,833
Debt securities issued or guaranteed by Canada
4,047,037
414
136,630
3,910,821
A province or municipality
465,377 157,393
67
16,497
448,947 148,722
Other debt securities issued by United States Treasury
-
8,671
Designated at FVOCI Other equity securities
8,972
1,617
284
10,305
Total
$
4,705,612 $
2,098
$
162,082 $
4,545,628
(1) Included in cash resources on the consolidated balance sheets. (2) The amortized cost of debt securities and cash resources measured at FVOCI is net of an allowance for credit losses of $120 (October 31, 2022 – $498).
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, 2023, reversals of the provision for credit losses of $378 (October 31, 2022 – reversals of $38) were recorded in the consolidated statements of income related to a change 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, 2023 and 2022.
5. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS AND PURCHASED UNDER RESALE AGREEMENTS Securities sold under repurchase agreements represent the sale of government issued 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 issued 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.
74 | CWB Financial Group 2023 Annual Report
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