VANCOUVER, B.C., May 27, 2022 – Central 1 Credit Union (‘Central 1’ or ‘the organization’) reported a loss of $35.4 million for the first quarter (Q1) ended March 31, 2022.

Central 1’s reported results are reflective of the impact of widening credit spreads on the mark to market valuation of its Treasury securities portfolio as compared to its deposit funding. Total unrealized losses of $53.2 million overshadow strong earnings in other business lines and continued positive interest margin within the Treasury securities portfolio.

“We continue to experience consistent performance and growth across many of our business lines and many fee-based businesses across the organization are exceeding 2022 forecasted earnings,” said Sheila Vokey, Central 1’s President and CEO. “Despite unrealized losses due to sociopolitical and economic uncertainties, the credit union system as a whole continues to demonstrate stable asset growth which has continued to provide Central 1 with a robust deposit base.”

Q1 2022 Consolidated Results Compared to Q1 2021:

  • Loss of $35.4 million, compared to profit of $24.7 million in 2021.
  • Assets of $12.8 billion, down 11.1 per cent or $1.6 billion from $14.4 billion in 2021.

In Q1 2022, the economy faced renewed uncertainty with rising inflation, the conflict in Ukraine, and more recently the renewed spread of COVID-19 in key China manufacturing and technology hubs. As a result, credit spreads on financial instruments widened and resulted in a decrease of $53.2 million in mark to market value. Treasury continues to generate strong interest margin with $17.1 million in Q1 2022 compared to $16.1 million for the same period in 2021. During the quarter, Central 1 received a further liquidation distribution of $2.2 million (US $1.7 million) related to its prior investment in U.S. Central Federal Credit Union. Investments in strategic initiatives[1] continued at planned levels with a $2.1 million higher spend in the quarter, consistent with Central 1’s strategic priorities. Excluding this distribution and investment in strategic initiatives, non-financial income and non-financial expense remained relatively stable at a net income of $1.3 million.

The organization has also taken steps to support employees, members, clients and communities impacted by the conflict in Ukraine, including temporarily waiving processing fees for wire transfers delivering financial assistance to Ukraine and its neighboring countries, while also partnering with the Canadian Credit Union Association to collectively raise funds for the Ukrainian people with all contributions going directly to the Canada-Ukraine Foundation.


Treasury reported a loss of $37.5 million in Q1 2022, down $63.9 million from the same quarter last year associated with the unrealized loss related to widening of credit spreads. Throughout 2021, credit unions deployed excess liquidity into lending to members as the economy improved, and these outflows continued in 2022. As a result, Central 1 has seen deposits gradually decrease by $3.7 billion to $6.2 billion from March 31, 2021, which is consistent with levels observed pre-COVID.

Payments & Digital Banking Platforms and Experiences

Payments & Digital Banking Platforms and Experiences experienced a profit of $0.5 million in Q1 2022, compared to a loss of $1.5 million in the same quarter last year. Investments in strategic initiatives for this segment increased by $3.3 million from the same quarter last year, consistent with Central 1’s strategic priorities. Certain expenditures in strategic initiatives qualify for Canada’s Scientific Research and Experimental Development (SR&ED) tax incentive credits, which resulted in a higher profit during the current quarter.

Central 1’s first quarter Management’s Discussion and Analysis and Financial Statements have been filed on Central 1’s SEDAR profile at and are also available at

About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $12.8 billion as at March 31, 2022, Central 1 provides critical services at scale to enable a thriving credit union system. We do this by collaborating with our clients, developing strategies, products, and services to support the financial well-being of their more than 5 million diverse customers in communities across Canada. For more information, visit

Caution Regarding Forward Looking Statements
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. These include, without limitation, statements relating to our financial performance objectives, vision and strategic goals, the economic, market and regulatory review and outlook for the Canadian economy and the provincial economies in which our member credit unions operate and the impacts of the COVID-19 pandemic, as well as statements that contain the words “may,” “will,” “intends” and “anticipates” and other similar words and expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Actual results may differ materially from those currently anticipated. Securityholders are cautioned that such forward-looking statements involve risks and uncertainties. Certain important assumptions by Central 1 in making forward-looking statements include, but are not limited to, competitive conditions, economic conditions, regulatory considerations, and the impacts of the COVID-19 pandemic. Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include economic risks, regulatory risks, risks and uncertainty from the impact of the COVID-19 pandemic and other risks detailed from time to time in Central 1’s periodic reports filed with securities regulators. Given these risks, the reader is cautioned not to place undue reliance on forward-looking statements. Central 1 undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

[1] Investments in strategic initiatives are supplementary financial measures and represent the net spend Central 1 incurred during the reporting period to develop and deliver solutions to support the growth of the credit union system

– ENDS –


John Ngo
Director of Communications
Central 1
T 905.282.8401

Brent Clode
Chief Investment Officer
Central 1
T 905.282.8588 or 1.800.661.6813 ext. 8588

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