MSIC INSURANCE MSIC INSURANCE FUND FINANCIAL REPORT
INVESTMENT BALANCE & INVESTMENT YIELD (Includes MSIC Properties, LLC) Fiscal Years Ending September 30 ($ in Millions)
(FHLBB), a $13.7 million net decrease in Liquidity Reserve Fund (LRF) deposits, and the paydown of the $4.5 million borrowing on a line of credit used to temporarily finance the garage improvement project upon completion of the project. The investment balance further decreased due to substantial increases in interest rates during the fiscal year, which resulted in a $5.1 million increase in the unrealized losses on the investment portfolio. Investment yield decreased due to the restructuring of the investment portfolio in Fiscal Year 2020 at a time when interest rates were low. The yield was further impacted by the negative annual return on the real estate investment. Consumers continue to have great trust and confidence in MSIC’s member credit unions, which has led to a continued surge in excess deposits. During Fiscal Year 2022, MSIC experienced its 4th consecutive year of double-digit excess deposit growth. However, as the growth rate dropped from last year’s impressive rate, Assessment Revenue decreased by $600,000 during Fiscal Year 2022.
$150.8
$142.2
$124.8
$150.8
$111.9
$109.8
$142.2
$124.8
$111.9
$109.8
2.75%
2.72%
2.13%
2.75%
2.72%
2.13%
0.53%
0.53%
-0.05%
-0.05%
2018
2019 2019
2020
2021
2022
2018
2020
2021
2022
Investment Balance Investment Balance
Investment Yield
Investment Yield
with MSIC Partners, which brought over mortgage fulfillment revenue of $1.1 million. Liquid assets (cash and cash equivalents, certificates of deposit and investment securities with maturities of one year or less) totaled $32.3 million or 29.05% of total assets at September 30, 2022 compared to $40.3 million or 28.01% of total assets at September 30, 2021. The investment securities maturing in one to five years and in over five years were 40.23% and 8.50% of total assets, respectively. The majority of the investment securities maturing in over five years are federal agency mortgage backed securities. In addition, the investment securities are almost entirely in U.S. Treasury, U.S. government agencies and fully insured certificates of deposit. At September 30, 2022, the weighted average life of the certificates of deposit and investment securities was 26.1 months compared to 32.6 months at September 30, 2021. Investment assets, which include the real estate investment, decreased during the year. This decrease primarily resulted from decreased borrowings of $9 million at the Federal Home Loan Bank of Boston
ASSESSMENT REVENUES Fiscal Years Ending September 30 ($ in Thousands)
$5,751
$5,134
$3,742
$2,430
$1,344
2018
2019
2020
2021
2022
14
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