Credit Union Annual Report 2022 - Flipbook - Page 60
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
4. Securities at fair value through the profit or loss (continued)
On an annual basis the investment in the Caribbean Utilities Company Ltd declares and pays dividends. Credit
Union’s dividends are automatically reinvested. In 2022 the reinvestment of dividend income was $127,565 (2021:
$121,824).
2022
Level 2
Opening balance at August 1
Additions
Sale of Investment
Change in unrealized gain/(loss)
Closing balance at July 31
$
$
2,781,773
127,565
–
162,850
3,072,188
2021
$
2,704,215
121,824
–
$
(44,266)
2,781,773
5. Mortgages and personal loans
The composition of loans to members is as follows:
2022
Mortgage loans
Personal loans
Total loans
$
Loan interest receivable
Total loans including interest receivable
Less: Provision for loan losses:
- Specific provision
- Expected credit loss
Total
$
260,403,955
101,296,605
361,700,560
2021
$
226,605,706
97,149,706
323,755,412
917,887
362,618,447
904,724
324,660,136
(251,260)
(308,584)
(559,844)
362,058,603
(1,171,536)
(259,643)
(1,431,179)
323,228,957
$
Term and interest rates
Generally, the maximum repayment period of mortgage loans is up to 35 years (2021: up to 35 years) and personal loans
is less than 10 years (2021: less than 10 years) and all assets held as security for such loans are located in the Cayman
Islands. Loans attract interest at rates which are fixed at the time of credit origination. For the year ended July 31, 2022,
the effective yield on the loan portfolio is 5.47% (2021: 5.57%).
Loans to related parties
All loans to employees and elected volunteers are subject to the same terms and conditions as those applicable to other
members of the Credit Union. Interest rates for employees and elected volunteers vary between 3% and 12% (2021:
3.5% and 12%).
Included in mortgage and personal loans are loans of $15,914,236 (2021: $15,233,219) to directors, employees and
committee members of the Credit Union (Note 19), of which the scheduled repayments on none of the loans were past
due at July 31, 2022 (2021: none).
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