DESPITE THIS DECREASE, THIS RATIO REMAINS THE STRONGEST COVERAGE RATIO FOR ANY DEPOSIT INSURER IN THE NATION. MSIC INSURANCE MSIC INSURANCE FUND FINANCIAL REPORT advance and LRF deposits led to lower interest expense. MSIC’s salaries and benefits decreased due to having less staff and a decrease in certain benefits. Further, there was a reduction in legal expenses incurred by MSIC in preparing to meet future challenges presented both by the Pandemic and future crises, as significant efforts had been made during the prior fiscal years. During the prior fiscal year, a general insurance reserve of $2 million was established for potential losses or other costs associated with restoring stability to member credit unions that may face financial or operational difficulties. The increase in this reserve was much lower during the current fiscal year. Also, during the prior fiscal year, a reserve was established for MSIC Partners related costs. As MSIC Partners received additional funding during this fiscal year, through both a loan and additional capital contributions, this reserve
RESULTS OF OPERATIONS Fiscal Years Ending September 30 ($ in Thousands)
was no longer deemed necessary. With the pay down of the temporary debt used to finance the garage improvement project, there was a decrease in the interest expense on the borrowings. A couple of larger expense items offset the decreases. The larger offset was related to the consolidation with MSIC Partners, which increased both salaries and benefits and other general and administrative expenses. Depreciation expense related to the garage improvement project increased. In addition, there were two large repairs and maintenance events at the property which led to an increase in the expenses. During the year ended September 30, 2022, insured excess shares increased by $374 million or 17.49%, MSIC’s total assets decreased by $32.7 million, and the Fund Balance decreased by $5.0 million. As a result of the increase in excess shares and the decrease in the Insurance Fund balance, the ratio of the Insurance Fund balance to insured excess shares (coverage ratio) decreased to 2.29% at September 30, 2022. Despite this decrease, this ratio remains the strongest coverage ratio for any deposit insurer in the nation.
$8,027 $8,769
$8,436
$8,027 $8,769
$8,024 $7,890
$8,436
$8,024 $7,890
$7,503
$6,487 $7,009
$7,503
$6,487 $7,009
$5,701 $6,046
$5,830
$5,701 $6,046
$5,830
$5,323
$5,323
$4,353
$4,353
$3,675
$3,463
$3,675
$3,463
$2,156
$2,156
$1,654
$1,392
$1,654
$1,392
-$700
-$700
-$1,097
-$1,097
2018
2019
2020 2021
2022
2018
2019
2020 2021
2022
Gross Revenues (Includes Gain/Loss on Sales) Total Expenses* Total Expenses (Excludes Interest and Rental Expenses) Net Investment Income Gross Revenues (Includes Gain/Loss on Sales) Total Expenses* Total Expenses (Excludes Interest and Rental Expenses) Net Investment Income
*Includes loss attributable to non-controlling interest in MSIC Partners, LLC
16
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