MSIC 2023 Annual Report

$150.8

$142.2

2.72%

Investment assets, which include the real estate investment, decreased during the year. This decrease primarily resulted from decreased borrowings of $6 million at the Federal Home Loan Bank of Boston (FHLBB) and a $4.4 million net decrease in Liquidity Reserve Fund deposits. The investment balance decrease was offset by a $1.6 million decrease in the unrealized losses on the investment portfolio, which resulted from portfolio turnover. Investment yield increased due to investing excess cash holdings into higher earning investment securities, reinvesting into higher yielding investment securities, and the increase in interest rates on many of the cash accounts. The investment yield was further positively impacted by the substantial improvement of the annual return on the real estate investment.

$124.8

$150.8

$109.8

$142.2

2.72%

$98.2

$124.8

2.13%

$109.8

$98.2

2.13%

0.69%

0.69%

-0.05%

0.53% 0.53%

-0.05%

2019

2020 2021 2020 2021

2022

2023

2019

2022

2023

Investment Balance

Investment Yield

Investment Balance

Investment Yield

INVESTMENT BALANCE & INVESTMENT YIELD (Includes MSIC Properties, LLC) Fiscal Years Ending September 30 ($ in Millions)

Investment yield increased due to investing excess cash holdings into higher earning investment securities, reinvesting into higher yielding investment securities, and the increase in interest rates on many of the cash accounts.

$5,571

$5,134

$3,742

During Fiscal Year 2023, after experiencing four consecutive years of double-digit excess deposit growth, the growth rate dropped. This led to assessment revenue decreasing by $2.9 million during Fiscal Year 2023. The decrease in the excess deposit growth rate and the assessment revenue were despite adding one new member during the fiscal year. During the early 1990s, Capital Infusions were made to six members, as a condition for these six credit unions obtaining federal primary insurance through the NCUA. By September 30, 2018, all but one of these members repaid the capital infusions they received at that time. Given the

$2,430

$2,244

2019

2020 2021

2022

2023

ASSESSMENT REVENUES Fiscal Years Ending September 30 ($ in Thousands)

28 INTERNATIONAL COLLABORATION

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