(Edmonton, AB) – Servus Credit Union Ltd. (Servus) wrapped the second quarter of the 2022 fiscal year with the following results, as compared with the corresponding period in the 2021 fiscal year:

• Assets increased by 3.5% to $17.9 billion
• Deposits increased by 4.7% to $14.8 billion
• Loans increased by 4.1% to $15.7 billion
• Retained earnings increased 8.8% to $1.1 billion
• Net income decreased by 15.0% to $46.8 million
• Provision for credit losses decreased by 82.2%

Net income is down 15% due to fluctuations to credit loss recoveries. An improvement in Alberta's economic outlook and the health of our loan book have seen our net interest income and other income rebound favourably from the setbacks caused by COVID-19. Provision for credit losses remain lower than expected, albeit higher than last year. As Servus watches Alberta's political and economic landscape shift dynamically during these times, credit losses are expected to normalize.

Operating expenses are up 10.2% to $117.6 million due to organizational transformation activities that support Servus's focus on becoming the largest and strongest credit union in Canada. Recent activities include changes to staffing and the organizational structure, which drive Servus's aim to be a growth-focused organization that delivers a best-in-class member experience.

"Servus is at a point of significant transition as we adapt to changing market conditions in our post-pandemic world and across the financial industry," said Ian Burns, Servus president & CEO.

"During the second quarter of the 2022 fiscal year, we focused on reimagining Servus, innovating better banking solutions, and enhancing our member tools and services. This is how we plan to keep up in our fast-paced and ever-changing world. We will continue helping our members feel good about their money by building on our position of strength as the top bank in Canada (Forbes, 2022)."

About Servus Credit Union Ltd.

At Servus Credit Union we've been shaping the financial fitness of Albertans for more than 80 years with a full line of secure financial services. We help members manage their money wherever they are through more than 100 branches in 59 communities; online, mobile and telephone banking; and 1900 no-fee ATMs across Canada. We re-invest our profits in our members and the communities we serve. For more information, call 1.877.378.8728 or visit servus.ca.

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