MSIC 2022 Annual Report

MSIC AUDITED F MSIC AUDITED FINANCIAL STATEMENTS

MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

N OTE 5 - I NVESTMENT S ECURITIES (C ONTINUED ) Investment securities are exposed to various risks such as interest rate, market and credit risks. Market risk includes global events that could impact the value of investment securities, such as a pandemic or internal conflict. Due to the level of risk associated with investment securities, it is at least reasonably possible that changes in the fair values of the investment securities will occur in the near term and that such changes could have a material effect. At September 30, 2022 and 2021, securities available-for-sale with an estimated fair value of $33,155,399 and $37,652,127, respectively, were pledged to secure the advances with the FHLB (Reference to Note 9). At September 30, 2022 and 2021, securities available-for-sale with an estimated fair value of $453,446 and $498,024, respectively, were pledged to secure a line of credit with another financial institution (Reference to Note 10). Information pertaining to investment securities available-for-sale with gross unrealized losses at September 30, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position, follows:

September 30, 2022 12 Months or Greater

Less Than 12 Months

Total

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

Available for sale securities: U.S. government and government- sponsored enterprise obligations

$ 2,998,182

$ (1,741) $ 52,342,487 (3,966,024) $ $ 55,340,669 (3,967,765) $

Mortgage-backed securities

3,015,635 231,738

(340,136) (30,958)

5,075,659

(905,451)

8,091,294 (1,245,587)

231,738

(30,958)

Municipal bonds

$ (372,835) $ 57,418,146 (4,871,475) $ $ 63,663,701 (5,244,310) $

$ 6,245,555

September 30, 2021 12 Months or Greater

Less Than 12 Months

Total

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

Available for sale securities: U.S. government and government- sponsored enterprise obligations

$ 56,267,064

$ (142,479)

-- --

$ 56,267,064

$ (142,479)

Mortgage-backed securities

6,598,022

(80,270)

6,598,022

(80,270)

$ (222,749)

$ 62,865,086

$ (222,749)

$ 62,865,086