Tightening interest margins drove up the number of unprofitable credit unions at midyear for the first time since 1989.

As of midyear, 727 credit unions were losing money, up 11% from the year-earlier period, according to figures from Veribanc Inc., a consulting firm in Wakefield, Mass. The institutions, which represent $3.4 billion in assets, lost $23.7 million.

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