Monday, July 6, 2020

4 out of 5 FICUs Reported Positive Net Income in Q1 2020

Approximately 80 percent of all federally insured credit unions (FICUs) reported a profit for the first quarter of 2020.

At the end of 2019, 89 percent of FICUs were profitable.

The increase in provisions for loan and lease losses due to COVID-19 pandemic related economic disruption and narrower net interest margins caused fewer FICUs to report a profit in the first quarter.

First quarter call report data show that 4,175 FICUs had positive net income.

Net income and size are positively correlated.

Roughly two-thirds of credit unions with less than $10 million in assets were profitable during the first quarter of 2020. In comparison, almost 89 percent of credit unions with at least $1 billion in assets reported a profit.

The following table shows the percent of credit unions that are profitable by asset size.

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