Credit union earnings were flat in the second quarter despite record loan production and rising net interest margins, Callahan & Associates reported Wednesday.
During the Washington, D.C., credit union company's quarterly Trendwatch webinar, it showed credit unions' net income was an annualized 0.86% of their average assets in the second quarter, down from 1.16% a year earlier and 0.87% in the first quarter.
The decline from a year ago was related to low provisions for loan losses in early 2021 as credit unions reclaimed overly pessimistic provisions made in 2020 at the start of the COVID-19 pandemic. Results for the first and second quarters have also been lowered by heavy write-downs in investment assets to reflect market downturns.
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