Source: Callahan & Associates
Key trends that emerged in the aftermath of the onset of COVID-19 largely continued through the end of 2020, despite several notable shifts occurring in the late summer and early fall as noted in our last update. After moderating in the third quarter with an uptick in loan demand, investment balances at credit unions surged 8.7% from September to December (up by $48.3 billion), totaling $600.9 billion at year-end. Within the portfolio, despite mandates to deploy excess cash into traditional investments to combat shrinking margins, cash balances rose 14.9% from September and were up 98.2% year-over-year. Investments in securities and certificates expanded at a slower, yet historically strong linked quarter pace of 4.9%.
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