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While the lower of cost or market method remains in effect for loans held for sale, it's not clear if the new, more restrictive requirement of a positive intent to hold to maturity will apply to loans held for investment. As the Company intends to hold to maturity the hedge derivatives giving rise to these adjustments, the increase in earnings will reverse over time. Debt securities the enterprise has the positive intent and ability to hold to maturity are classified as hold-to-maturity securities and reported at amortized cost. |
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