MIDDLETOWN – People’s Credit Union brought in a record $4.9 million in income in 2020, according to an annual report published in May.
The 2020 earnings represent a 3.4% increase over the prior year.
The credit union also increased members’ equity by 8.7% to $58.6 million, the report stated.
The increased earnings come despite nearly doubling the credit union’s provision for loan losses, a move mirrored by financial institutions large and small in anticipation of bad loans during the COVID-19 pandemic. People’s Credit Union set aside $1 million in its loan loss reserves in 2020, compared with $516,000 in 2019.
Interest income totaled $19.3 million, a 7.7% drop reflecting a lower interest-rate environment. Noninterest income rose 17.6% to $6.1 million, driven by a nearly 18-fold increase in the net gain on sales of loans, which hit $1 million.
Interest expenses fell 46.8% to $1.9 million, while noninterest expenses ticked up 2% to $17.6 million,
Total year-end assets stood at $554.1 million, a 7.2% increase that included a $30.6 million investment portfolio and $444.2 million in loans. Of this, $6.5 million came from the 159 loans through the Paycheck Protection Program. Member deposits stood at $485.9 million, a 17.6% bump over the prior year, aided by government stimulus, the credit union stated.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
