TTER
entire credit union movement can weather the dramatic challenges ahead. Advancing technologies, ever- changing consumer behavior, different purchasing pathways and further digital developments will all present community financial institutions with a wave of new and difficult challenges. Some of those challenges may be detrimental to our movement, if we fail to adjust adequately. We firmly believe no single institution is large enough to handle the future years alone. We can only thrive if we, together, collaborate, share costs, and improve performance as a Cooperative. In addition, we are now experiencing our first significantly rising interest rate environment after a 20-year period of consistently declining rates. An entire generation of credit union leadership has never experienced the unique challenges of a rapidly rising rate environment, as well as a new higher standard level of rates. After a brief period of earnings improvement due to repricing of investment portfolios, we will see a significant rise in the cost of funds, thereby compressing net interest margins. Asset-liability practices and loan portfolio management over the past five years will be put to the test in 2023 and beyond. MSIC will continue to provide guidance and services designed to help your institution weather the future challenges. All of us need to become better competitors for both market share and consumer members. We have a number of people to thank for our performance in 2022. Our staff performed extremely well throughout, even as we struggled with the challenges of the continuing business effects of the Pandemic and the complications of a hybrid work environment. MSIC’s Board of Directors has worked tirelessly on behalf of the Cooperative and we thank them for their constant support and wise counsel. MSIC’s Advisory Committee has provided insight and guidance that have greatly assisted our continuing development. Finally, the Board of Managers of MSIC Partners, LLC has remained committed to its effort to seek profitability for the CUSO’s important and long-term objectives. Thank you all. To all our members: as we celebrate MSIC’s 61st year as the nation’s first deposit insurer for credit unions, we look forward to working with you to overcome the challenges ahead. We will continue to provide exceptional insurance protection and key services to our member credit unions because we know that our consumer members benefit greatly from our collective efforts. Best wishes for a successful 2023,
Michael E. Murphy, Chairman of the Board
Michael C. Hanson, President & CEO
2022 ANNUAL REPORT
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