Net interest margin

Credit unions need to be thinking about pressure on net interest margins and declining revenues.

The answer depends who you ask, but an analysis of deposit and loan trends offers some insight.

Consumer lending margins in the United States strengthened at the Canadian bank, which overall saw more growth in business lending than consumer lines in its fiscal first quarter.

Boat sales have increased since the financial crisis, creating an opportunity for credit unions, but a number of risks mean institutions should tread carefully.

Though banks are generating more revenue from interchange and annual fees, those gains have been offset by declines in income from cash advances and late fees.

Bank of America CEO Brian Moynihan and his fellow executives said they see nothing to suggest a slowdown is imminent. Their outlook was far more upbeat than that of JPMorgan chief Jamie Dimon.

The Dallas company beat earnings estimates even as it reported declines in deposits, total loans and fee income.

Selling $1.6 billion in mortgages, and paying off a similar amount of wholesale borrowings, will allow the company to expand its net interest margin in 2019.

A 2016 law expanded credit union powers in the Great Lakes State, but it also capped how CUs can invest in GSEs – a move that nearly cost one institution $6 million.

Strong growth in the bank's core business of multifamily lending was offset by higher rates it paid on CDs and borrowed funds.

The California company reported increases in loans and deposits, along with a wider net interest margin.

Net income soared 32% thanks to higher interest rates that contributed to a wider net interest margin and its most interest income in a quarter in years.

More than half of all federally insured credit unions have less than $50 million of assets. But challenges, including increased demands for technology, are making it harder for small institutions to thrive, forcing some to look for merger partners.

The Pittsburgh bank reported a double-digit increase in 3Q profits on a mix of higher loan yields in its retail and corporate banking units, higher corporate service fees and several other factors.

The biggest U.S. bank leaned on old-fashioned lending in the third quarter to weather a slump in fixed-income trading.

A huge chunk of the profit increase in the second quarter was due to a lower tax rate, but rising net interest margins and loan growth signal that institutions continue to derive revenue from their loan book.

Prosperity Bancshares in Houston said that its earnings increased 19% from a year earlier as its efficiency ratio rose.

BankUnited in Miami Lakes, Fla., said that second-quarter earnings rose 36% as average loan and investment securities balances increased.

The combination of rising interest rates and increased competition from nonbank lenders is prompting many commercial real estate investors to seek better deals elsewhere.

Despite some green shoots in key credit segments, total loan growth was light at many banks last quarter. Rate hikes are threatened, and deposits will get pricier — where will the earnings come from?