Central 1 reports first quarter 2026 financial results
VANCOUVER, British Columbia, May 28, 2026 (GLOBE NEWSWIRE) -- Central 1 Credit Union (Central 1) today reported first quarter financial results and provided an update on performance across its core businesses.
“Our first quarter results reflect stable underlying performance and continued growth in our core businesses, amid a challenging economic environment,” said Sheila Vokey, President and CEO of Central 1. “We remain focused on disciplined execution, supporting our clients through transformation, and investing in the capabilities that will drive long-term growth.”
First quarter 2026 compared with first quarter 2025:
- Net loss of $2.8 million, compared with net loss of $24.0 million
- Adjusted net loss1 was $2.1 million, compared with adjusted net income of $6.6 million
- Net fair value gains of $0.4 million, compared with net fair value losses of $7.4 million
- Net interest income of $18.0 million, compared with $17.4 million
- ROE2,3 was -1.3%, compared with -2.3%
- Adjusted ROE2 was -1.0%, compared with 0.8%
- Total assets of $9.2 billion at March 31, 2026, compared with $9.6 billion as at December 31, 2025
Core Business & Financial Performance
Treasury
Treasury recorded a net loss of $1.2 million in the first quarter, primarily reflecting an increase in provision for credit losses related to the commercial loan portfolio. Excluding this item, underlying performance remained resilient, supported by solid revenue trends and higher net interest income driven by continued optimization of the funding mix.
Payments
Payments delivered strong top-line momentum in the quarter, generating notable revenue growth of 9.7% year-over-year driven by higher transaction volumes, customer expansion, pricing initiatives, and increased adoption of new and enhanced products. To support scalability, regulatory readiness, and long-term growth, Payments continued its strategic investments to strengthen the platform and position Payments for improved operating leverage and sustainable performance as scale increases, resulting in a net loss of $2.5 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 loss of $2.1 million during the three months ended March 31, 2026. The table below provides a view of Central 1’s core business performance.
|
For the three months ended March 31 |
||||||||||||
| $ millions |
2026 |
2025 |
Change |
|||||||||
| Reported net loss | $ | (2.8 | ) | $ | (24.0 | ) | $ | 21.2 | ||||
| Adjust: net loss from Digital Banking | 0.7 | 30.6 | (29.9 | ) | ||||||||
| Adjusted net income (loss) | $ | (2.1 | ) | $ | 6.6 | $ | (8.7 | ) | ||||
Notes
1This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Financial Measures” section of the Q1 MD&A for more information.
2This is a non-GAAP financial ratio. Refer to the “Non-GAAP and Other Financial Measures” section of the Q1 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.
Notes
About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $9.2 billion as of March 31, 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:
Heather Merry
External & Client Communications
Central 1 Credit Union
T 1.800.661.6813 ext. 2355
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
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