A locked-down economy combined with volatile changes in monetary policy put lenders in a difficult position in the first quarter of 2020, as total revenue growth slowed as sources of income shifted away from interest-driven streams.

This Fourth of July, Callahan & Associates is celebrating patriotically named credit unions with a look at how they return value to their member-owners.

General uncertainty regarding the interest rate environment made it difficult for institutions to accurately price deposit and loan products, which is reflected in year-end income statements.

Credit unions report improved earnings following 2018 rate cuts. However, increased expenses put downward pressure on margins.

Earnings growth extended into the second quarter as cooperatives reported higher net interest income than operating expenses for the second consecutive period.

Credit unions reaped the benefits of upward rate movement and the associated repricing benefits for new loan originations in 2018.

Largely a result of rising loan demand and interest rate trends, the amount of income generated at credit unions expanded throughout 2018.

As interest rates tick up, the margin between interest income and interest expenses at U.S. credit unions slowly expands. Test your knowledge of the state of the net interest margin in the fourth quarter.

Cash and investment balances at credit unions fell 5.4% year-over-year, however, investment yields reached the highest third quarter level since September 2010.

Credit unions covered their operating expenses with net interest income alone for the first time in seven years.