CWBFG Annual Report 2023

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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