INANCIAL STATE
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 ) As of September 30, 2022, thirty-four debt securities had unrealized losses, twenty-one of which were U.S government and government sponsored enterprise obligations, twelve of which were mortgage-backed securities issued by FHLMC, FNMA and GNMA and one of which was a municipal bond. These thirty-four debt securities had unrealized losses with aggregate depreciation of approximately 7.6% from the Corporation’s amortized cost basis. As of September 30, 2021, twenty-six debt securities had unrealized losses, twenty of which were U.S government and government sponsored enterprise obligations and six of which were mortgage-backed securities issued by FHLMC, FNMA and GNMA. These twenty-six debt securities had unrealized losses with aggregate depreciation of approximately 3.5% from the Corporation’s amortized cost basis. These unrealized losses on the Corporation’s debt securities are primarily a reflection of changing interest rates. At September 30, 2022 and 2021, the majority of these securities are guaranteed by the U.S. government or government-sponsored enterprises. Accordingly, it is expected that the securities would not be settled at a price less than the par value of the investment. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because the Corporation does not intend to sell the investments nor is it likely that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider these investments to be other-than-temporarily impaired at either September 30, 2022 or 2021. N OTE 6 - R EAL E STATE H ELD FOR I NVESTMENT The real estate held for investment is owned by MSIC Properties, LLC, a wholly-owned subsidiary of the Corporation and is summarized as follows at September 30, 2022 and 2021: 2022 2021 Land $ 5,214,750 $ 5,214,750 Building 15,768,476 15,768,476 Building improvements 8,923,973 8,769,307 Furniture, fixtures and equipment 9,294 9,294 Construction in progress 22,063 8,995 29,938,556 29,770,822 Less: accumulated depreciation (2,928,849) (2,090,541) $ 27,009,707 $ 27,680,281
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2022 ANNUAL REPORT
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