Central 1 reports second quarter 2026 financial results

VANCOUVER, British Columbia, Aug. 28, 2026 (GLOBE NEWSWIRE) -- Central 1 Credit Union (Central 1) today reported second quarter financial results and provided an update on performance across its core businesses.

"Our performance in the first half of 2026 reflects steady advancement of our strategic priorities, along with growth in our core business, against a backdrop of ongoing market volatility,” said Sheila Vokey, Central 1’s CEO. “In the second quarter, we continued our prudent approach, delivering quarterly profitability coupled with a disciplined increase in our credit provisions to protect against evolving conditions.”

Second quarter 2026 compared with second quarter 2025:

• Net income of $13.1 million, compared with $21.4 million
• Adjusted net income¹ of $13.0 million, compared with $22.3 million
• Pre-provision, pre-tax (PPPT)¹ earnings of $20.8 million compared with $26.5 million
• ROE^2,3 was 6.2%, compared with 6.4%
• Adjusted ROE² was 6.2%, compared with 11.4%
  

Year-to-date 2026 compared with year-to-date 2025:

• Net income of $10.3 million, compared with net loss of $2.6 million
• Adjusted net income¹ of $10.9 million, compared with $28.9 million
• PPPT¹ earnings of $27.7 million compared with PPPT¹ loss of $10.9 million
• ROE^2,3 was 2.4%, compared with 3.8%
• Adjusted ROE² was 2.6%, compared with 7.2%
• Total assets of $8.9 billion as at June 30, 2026, compared with $9.6 billion as at December 31, 2025

Underlying Business & Financial Performance

Treasury

Treasury delivered post-tax net income of $19.6 million in the second quarter, reflecting solid underlying performance. Results were supported by $19.5 million of net interest income, reflecting continued strength in core treasury activities. Net fair value gains were $17.1 million, largely driven by further credit spreads tightening.

Payments

Payments delivered strong revenues during the second quarter, with non-interest income increasing $2.9 million, or 11.8%, year-over-year to $27.5 million, driven by higher transaction volumes, customer growth, pricing initiatives, and increased adoption of new and enhanced products. These results demonstrate continued expansion and growing client engagement across Payments’ services. Ongoing investment in capabilities to enable long-term growth and sustainability, including regulatory readiness, positions the business for improved operating leverage as scale continues. Payments reported a post-tax net loss of $0.8 million.

Non-GAAP Financial Measures

The following non-GAAP financial measures exclude certain items from our financial results prepared in accordance with IFRS Accounting Standards. The table below presents reconciliations of these measures to their respective most directly comparable financial measures disclosed in Central 1’s Interim Consolidated Financial Statements.

Adjusted Results

On an adjusted basis, which excludes the impact of Digital Banking that was transferred to Intellect Design Arena Ltd. in the first quarter of 2025, we reported a net income of $10.9 million during the six months ended June 30, 2026. The table below provides a view of Central 1’s core business performance.

									For the six months ended June 30
$ millions, except as indicated	Q2 2026		Q2 2025		Change				2026		2025		Change
Reported net income (loss)	$	13.1	$	21.4	$	(8.3)			$	10.3	$	(2.6)	$	12.9
Adjust: net loss (income) from Digital Banking		(0.1)		0.9		(1.0)				0.6		31.5		(30.9)
Adjusted net income	$	13.0	$	22.3	$	(9.3)			$	10.9	$	28.9	$	(18.0)

Pre-Provision, Pre-Tax Earnings (Loss)

Pre-provision, pre-tax earnings (loss) is a non-GAAP financial measure which represents income before income taxes and provisions for credit losses. Central 1 believes that this financial measure is useful in assessing underlying business performance.

								For the six months ended June 30
$ millions, except as indicated	Q2 2026		Q2 2025		Change			2026		2025		Change
Reported net income (loss)	$	13.1	$	21.4	$	(8.3)		$	10.3	$	(2.6)	$	12.9
Add: provision for credit losses		4.2		0.6		3.6			18.3		0.5		17.8
Add: income tax expense (recovery)		3.5		4.5		(1.0)			(0.9)		(8.8)		7.9
Pre-provision, pre-tax earnings (loss)	$	20.8	$	26.5	$	(5.7)		$	27.7	$	(10.9)	$	38.6

Notes
¹This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Financial Measures” section of the Q2 MD&A for more information.
²This is a non-GAAP financial ratio. Refer to the “Non-GAAP and Other Financial Measures” section of the Q2 MD&A for more information.
³When calculating the annualized ROA and ROE, certain items were treated as a non-recurring item and therefore not annualized.

About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $8.9 billion as of June 30, 2026, Central 1 provides payments, clearing and settlement, and treasury 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 www.central1.com. 

Caution Regarding Forward Looking Statements

This press release and announcement contain historical and forward-looking statements. All statements other than statements of historical fact are or may be based on assumptions, uncertainties, and management’s best estimates of future events. Central 1 has based the forward-looking statements on current plans, information, data, estimates, expectations, and projections about, among other things, results of operations, financial condition, prospects, strategies and future events, and therefore undue reliance should not be placed on them. These include, without limitation, statements relating to our financial and non-financial performance objectives, vision and strategic goals and priorities, including focus on capital and cost management and on the reduction of corporate expenses over time in support of long-term financial sustainability, the economic, market and regulatory review and outlook for the Canadian economy and the provincial economies in which our member credit unions operate , the impacts of external events such as international conflicts, protests, natural disasters or pandemics, 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 and regulatory considerations. Important risk factors that could cause actual results and the timing of such results to differ materially from those expressed or implied by such forward-looking statements include economic risks, regulatory risks (including legislative and regulatory developments), risks and uncertainty from the impact of rising or falling interest rates, international conflicts, natural disasters or pandemics, geopolitical uncertainty, information technology and cyber risks, environmental and social risk (including climate change), digital disruption and innovation, reputation risk, competitive risk, privacy, data and third-party related risks, risks related to business and operations, risks relating to the transition of clients to alternative digital banking providers, and other risks detailed from time to time in Central 1’s periodic reports filed with securities regulators. Central 1 is subject to risks associated with evolving U.S. trade and tariff policies, inflationary pressures, interest rate volatility, and potential regulatory changes under the current U.S. administration. Shifts in tariff structures or global trade conditions may adversely affect our cost structure and overall operating environment. 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.

Contacts

Media:
Amanda LeNeve
AVP, Communications & Marketing
Central 1 Credit Union
E communications@central1.com

Investors:
Brent Clode
Chief Investment Officer
Central 1 Credit Union
T 905.282.8588 or 1.800.661.6813 ext. 8588
E bclode@central1.com