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 14 - C OMMITMENTS AND C ONTINGENCIES (C ONTINUED ) O PERATING L EASE C OMMITMENTS (C ONTINUED ) Future minimum rental commitment under the non-cancelable lease agreement from an unaffiliated third party, not including the renewal option is as follows: Years ending September 30: 2023 $ 20,853 N OTE 15 - D IRECTORS ’ F EES In accordance with the Corporation’s policy, directors receive compensation of $1,000 for attending each Board meeting in person and $500 for attending via conference call. In addition, directors receive compensation of $500 for attending Board committee meetings in person and $250 for attending via conference call. During the years ended September 30, 2022 and 2021, directors’ compensation totaled $30,500 and $107,252, respectively. N OTE 16 - C ONCENTRATIONS The Corporation is restricted by Massachusetts regulatory policy to provide excess deposit insurance to credit unions whose main offices are located within the Commonwealth of Massachusetts. Two customers of MSIC Partners, LLC accounted for approximately 96% of the LLC’s mortgage fulfillment revenues during the year ended September 30, 2022. Accounts receivable from these two customers amounted to $54,554 at September 30, 2022. Two customers accounted for approximately 98% of the LLC’s mortgage fulfillment revenues during the year ended September 30, 2021. Accounts receivable from these two customers amounted to $227,556 at September 30, 2021. N OTE 17 - F AIR V ALUE M EASUREMENTS The Corporation uses a three level fair value hierarchy that prioritizes the inputs to valuation

techniques used to measure fair value. The three levels of the hierarchy are: Level 1

Valuation is based on quoted market prices in active markets for identical assets.

Level 2

Valuation is based on observable inputs other than Level 1 prices, such as, quoted prices of similar assets, quoted prices in inactive markets or other significant observable market inputs.