VANCOUVER, British Columbia, May 30, 2024 (GLOBE NEWSWIRE) -- Central 1 Credit Union (Central 1) today reported its first quarter performance reflecting strong financial results across business lines consistent with plans and expectations. "Central 1's financial performance for the first quarter of 2024 remained stable," said Sheila Vokey, Central 1's President and CEO. "As we continue to monitor market forces and trends, our internal efforts remain focused on providing access to reliable services and core support for our members and clients." First quarter 2024 compared with first quarter 2023: Net income of $28.9 million, compared with net income of $1.3 million Net fair value gain1 of $34.5 million, compared with net fair value loss1 of $6.2 million Net interest income of $14.5 million, compared with net interest income of $11.9 million Return on average equity1 of 3.8 per cent, compared with 0.2 per cent Total assets of $11.2 billion as at March 31, 2024, compared with $11.2 billion as at December 31, 2023 Central 1's net income for the first quarter of 2024 was $28.9 million, which increased by $27.6 million from the same quarter last year. The stronger financial results in the quarter were largely driven by credit spreads narrowing, which contributed to a net fair value gain1 of $34.5 million, compared to a $6.2 million net fair value loss1 reported in the same period last year. Net interest income was also up by $2.6 million due to higher asset yields and a lower funding allocation towards market issued funding. Investments in strategic initiatives1, which include Payments Modernization and digital banking initiatives, continued at a moderated pace compared to the prior year and remained consistent with Central 1's strategic priorities and plans, resulting in spending at $5.3 million lower year-over-year. Non-interest income, excluding strategic initiatives1, which primarily includes income generated from Central 1's fee-for-service based business, remained steady compared to the same quarter last year. Non-interest expense decreased by $0.6 million year-over-year, reflecting the focus on cost management. Treasury For the first quarter of 2024, Treasury reported a net income of $34.4 million, up $30.4 million from the $4.0 million reported in the same quarter last year. Favorable movements of credit spreads resulted in a $34.5 million net fair value gain1 in the Treasury portfolio, compared to the net fair value loss1 of $6.2 million reported in the same quarter last year. Net interest income increased $2.8 million year-over-year due to higher asset yields and a lower funding allocation towards market issued funding. Non-interest income includes revenue generated from Treasury's fee-for-service based business which remained consistent year-over-year. Provision for credit losses was $0.2 million in the current quarter, compared to a recovery of $0.7 million in the same quarter last year. Efforts toward responsible investing and environmental, social and governance (ESG) goals continued, reflected by Central 1's recognition in the UN Principles for Responsible Investment (PRI) annual assessment, in which the organization achieved a score of over 70 per cent across all categories, surpassing the average score by more than 15 per cent in three categories. Payments & Digital Banking Payments & Digital Banking reported a net loss of $3.1 million in the first quarter of 2024, compared to a net loss of $4.3 million reported in the same quarter last year. Net interest expense increased $0.3 million from the same period last year, driven by higher funding costs in the high interest rate environment relating to Central 1's clearing position with the BoC. Non-interest income, excluding strategic initiatives1, remained consistent year-over-year supported by relatively stable transaction volumes and adoption of new products in digital and payments. Non-interest expense decreased $3.6 million year-over-year, driven by lower spend on strategic initiatives as planned. Central 1's Payments team continued to focus on supporting clients through building readiness for each stage of the Payments Modernization initiative. Central 1 made progress on its plan to enable core payments functions soon available through the platform model of delivery and continued work on a payments growth strategy to provide value to both existing clients and new clients outside of the credit union system. Non-GAAP and Other Financial Measures Management of Central 1 uses a number of financial measures and ratios to assess overall performance. Some of these measures do not have a standardized definition prescribed by Generally Accepted Accounting Principles (GAAP) and might not be comparable to similar measures presented by other companies. Presenting non-GAAP financial measures and ratios provides readers with an enhanced understanding of how management analyzes Central 1's results and assesses the underlying business performance. The discussions of non-GAAP financial measures and ratios that Central 1 uses in evaluating its operating results are presented as footnotes in the respective sections of this MD&A together with the required disclosure below in accordance with National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Non-GAAP Financial MeasuresThe following non-GAAP financial measures exclude certain items from the financial results prepared in accordance with IFRS Accounting Standards. The tables below present reconciliations of these measures to their respective most directly comparable financial measures disclosed in Central 1's Interim Consolidated Financial Statements. Net Fair Value Gain (Loss) Net fair value gain (loss) used across this MD&A is comprised of gain (loss) on disposal of financial instruments plus changes in fair value of financial instruments reported in the Consolidated Statement of Income (Loss). Reporting them combined provides better information on the fair value movements of Central 1's financial instruments to the readers.   For the three months ended March 31     $ millions   2024       2023        Change                               Gain on disposal of financial instruments as reported $ 30.2     $ 11.0     $ 19.2     Change in fair value of financial instruments as reported   4.3       (17.2 )     21.5     Net fair value gain (loss) $ 34.5     $ (6.2 )   $ 40.7                               Non-Interest Income, excluding Strategic InitiativesNon-interest income, excluding strategic initiatives, presented in the Overall Performance and Results by Segment sections of this MD&A is derived by excluding Central 1's income from investments in strategic initiatives. Excluding income from strategic initiatives allows readers to better understand Central 1's recurring financial performance and related trends. Overall Performance   For the three months ended March 31     $ millions   2024       2023