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%.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.