Total investments & quarterly growth chart 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%.

As noted above, loan demand again failed to match the sheer scale of deposit growth in the fourth quarter, compounded by the December stimulus package, which brought more share inflows in the final days of 2020. Fourth quarter member spending came in below expectations and consumer loan demand also struggled to find its footing. In total, share balances rose 3.7% from September and 20.1% over the last 12 months.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.