MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022
N OTE 2 - S UMMARY OF S IGNIFICANT A CCOUNTING P OLICIES (C ONTINUED ) I NVESTMENT S ECURITIES (C ONTINUED ) Securities Held-to-Maturity
Securities that management has the positive intent and ability to hold to maturity regardless of market conditions, liquidity needs or changes in general economic conditions are classified as held-to-maturity. These securities are reported at cost and adjusted for amortization of premiums and accretion of discounts that are recognized in interest income in the consolidated statements of operations using methods approximating the interest method over the period to contractual maturity, adjusted for anticipated prepayments. The Corporation had no held-to-maturity securities as of September 30, 2023 and 2022. Securities Available-for-Sale Securities classified as available-for-sale consist of investment securities with readily determinable fair values that the Corporation intends to hold for an indefinite period of time but not necessarily until maturity. These securities are carried at estimated fair value based on information provided by a third-party pricing service with any unrealized gains and losses excluded from net income and reported in accumulated other comprehensive income, which is reported as a separate component of equity. The amortization of premiums and the accretion of discounts are recognized in interest income in the consolidated statements of operations using methods approximating the interest method over the period to maturity. Realized gains (losses) on the sale of securities available-for-sale are determined using the specific-identification method based on the adjusted cost basis of the specific securities sold and, when applicable, are reported as a reclassification adjustment in other comprehensive income. Each reporting period, the Corporation evaluates all securities with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).
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2023 ANNUAL REPORT 85
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