NOVATION

Charter #65063 | MN

100M-500M (1077 CUs) Micro
31 100M-500M in MN

NOVATION has 6 strengths but faces 6 concerns

Key Strengths

Areas where this CU excels compared to peers

  • + Relationship Depth Leader: Top 0.7% in tier
  • + Wallet Share Momentum: Top 0.7% in tier
  • + Emerging Performer: Top 24.9% in tier
  • + ROA 0.32% above tier average
  • + AMR Growth Rate: Top 1.4% in tier
  • + Share Certificate Concentration (%): Top 4.6% in tier

Key Concerns

Areas that may need attention

  • - Stagnation Risk: Bottom 0.3% in tier
  • - Membership Headwinds: Bottom 0.8% in tier
  • - Credit Quality Pressure: Bottom 16.5% in tier
  • - Growth-at-Risk: Bottom 22.7% in tier
  • - Member decline: -14.5% YoY
  • - Member Growth Rate: Bottom 1.6% in tier

Core Metrics

As of 2025-Q3

Metric Current vs Tier Tier Avg State Avg (MN) National Avg Tier Percentile
Members 14,681
-14.5% YoY-2.2% QoQ
 -947 15,628
-3.4% YoY
 26,738
+5.8% YoY
 33,089
+6.1% YoY
 56th in tier
Assets $240.2M
+4.9% YoY+0.2% QoQ
 +$8.9M $231.3M
-0.0% YoY
 $521.2M
+7.2% YoY
 $547.7M
+7.8% YoY
 61st in tier
Loans $170.6M
+3.0% YoY+2.6% QoQ
 +$22.8M $147.8M
-1.4% YoY
 $373.7M
+9.3% YoY
 $388.7M
+8.6% YoY
 67th in tier
Deposits $214.3M
+4.0% YoY-0.2% QoQ
 +$14.0M $200.3M
-0.0% YoY
 $429.0M
+9.5% YoY
 $464.6M
+9.3% YoY
 62nd in tier
ROA 1.1%
+2.6% YoY+6.0% QoQ
 +0.3% 0.8%
+15.5% YoY
 1.4%
-35.4% YoY
 0.7%
+273.4% YoY
 72nd in tier
NIM 3.5%
+6.9% YoY+2.7% QoQ
 -0.1% 3.6%
+6.9% YoY
 3.7%
+9.1% YoY
 3.7%
+5.0% YoY
 42nd in tier
Efficiency Ratio 70.9%
-1.1% YoY-0.5% QoQ
 -6.4% 77.3%
-3.0% YoY
 74.2%
-2.5% YoY
 79.1%
-3.3% YoY
 28th in tier
Delinquency Rate 0.6%
+37.1% YoY+27.5% QoQ
 -0.3 0.9%
+7.6% YoY
 0.9%
+10.7% YoY
 1.2%
-0.9% YoY
 44th in tier
Loan To Share 79.6%
-1.1% YoY+2.8% QoQ
 +6.9% 72.7%
-1.5% YoY
 77.1%
-1.5% YoY
 68.0%
-1.7% YoY
 62nd in tier
AMR $26,218
+21.1% YoY+3.3% QoQ
 +$2K $24,363
+2.9% YoY
 $23,275
+3.9% YoY
 $19,418
+1.3% YoY
 70th in tier
CD Concentration 5.0%
-0.7% YoY-1.6% QoQ
 -19.4% 24.4%
+4.2% YoY
 22.0%
+1.9% YoY
 19.6%
+6.2% YoY
 50th in tier
Indirect Auto % 9.8%
+124.8% YoY+31.0% QoQ
 -4.1% 14.0%
-5.8% YoY
 6.6%
-8.5% YoY
 7.9%
-2.9% YoY
 50th in tier

Signature Analysis

Strengths (3)

Relationship Depth Leader

growth
#20 of 1006 • Top 0.7% in tier

Average member relationship growing year-over-year. Increasing engagement suggests members are consolidating more business here.

Why This Signature
AMR Growth (YoY): 21.14%
(Tier: 3.68%, National: 4.19%)
better than tier avg
Share Draft per Member: $3.6K
(Tier: $2.8K, National: $2.0K)
better than tier avg
1006 of 1077 Community CUs have this signature | 1330 nationally
↑ Growing +249 CUs YoY | New qualifier

Wallet Share Momentum

growth
#20 of 1006 • Top 0.7% in tier

Average member relationship growing year-over-year. Members are deepening their engagement.

Why This Signature
AMR Growth (YoY): 21.14%
(Tier: 3.68%, National: 4.19%)
better than tier avg
1006 of 1077 Community CUs have this signature | 1330 nationally
↑ Growing +249 CUs YoY | New qualifier

Emerging Performer

growth
#467 of 627 • Top 24.9% in tier

Profitable credit union with positive returns. May represent growth potential worth exploring.

Why This Signature
Return on Assets: 1.11%
(Tier: 0.77%, National: 0.71%)
better than tier avg
Member Growth (YoY): -14.51%
(Tier: 0.88%, National: 9.37%)
but worse than tier avg
627 of 1077 Community CUs have this signature | 852 nationally
↑ Growing +13 CUs YoY | Rank worsening

Concerns (4)

Stagnation Risk

risk
#6 of 550 • Bottom 0.3% in tier

Membership is declining. If profitability remains stable, current success may mask future risk from a shrinking member base.

Why This Signature
Return on Assets: 1.11%
(Tier: 0.77%, National: 0.71%)
but better than tier avg
Member Growth (YoY): -14.51%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
Avg Member Relationship: $26.2K
(Tier: $25.0K, National: $19.4K)
but better than tier avg
CD Concentration: 5.02%
(Tier: 24.41%, National: 19.60%)
but better than tier avg
550 of 1077 Community CUs have this signature | 648 nationally
→ Stable (555→550 CUs) -5 CUs YoY | New qualifier

Membership Headwinds

decline
#15 of 550 • Bottom 0.8% in tier

Membership declining year-over-year. They need solutions to stop the bleeding before it impacts revenue.

Why This Signature
Member Growth (YoY): -14.51%
(Tier: 0.88%, National: 9.37%)
worse than tier avg
550 of 1077 Community CUs have this signature | 648 nationally
→ Stable (555→550 CUs) -5 CUs YoY | New qualifier

Credit Quality Pressure

risk
#409 of 736 • Bottom 16.5% in tier

Delinquencies are rising year-over-year. Credit risk is building - they may need better underwriting tools.

Why This Signature
Delinquency Change (YoY): 0.16% points
(Tier: 0.04% points, National: 0.07% points)
worse than tier avg
736 of 1077 Community CUs have this signature | 1002 nationally
↓ Shrinking -199 CUs YoY | Rank improving

Growth-at-Risk

risk
#340 of 446 • Bottom 22.7% in tier

Loan portfolio growing while delinquencies are rising. Expansion with deteriorating credit quality needs attention.

Why This Signature
Loan Growth (YoY): 2.96%
(Tier: 3.64%, National: 36.38%)
worse than tier avg
Delinquency Change (YoY): 0.16% points
(Tier: 0.04% points, National: 0.07% points)
worse than tier avg
446 of 1077 Community CUs have this signature | 646 nationally
↓ Shrinking -77 CUs YoY | Rank improving

Metric Rankings

See how this credit union ranks across all tracked metrics compared to peers.

Strengths: Metrics in the top 25% (75th percentile or higher) | Concerns: Metrics in the bottom 25% (25th percentile or lower)

Comparing against 1077 peers in tier

Top Strengths (3 metrics)

16
AMR Growth Rate
growth
Value: 21.14%
Peer Avg: 3.64%
#16 of 1077 Top 1.4% in 100M-500M tier
51
Share Certificate Concentration (%)
balance_sheet
Value: 5.02%
Peer Avg: 23.61%
#51 of 1077 Top 4.6% in 100M-500M tier
191
Members Per Employee (MPE)
engagement
Value: 407.806
Peer Avg: 332.881
#191 of 1077 Top 17.6% in 100M-500M tier

Top Weaknesses (1 metrics)

1061
Member Growth Rate
growth
Value: -14.51%
Peer Avg: 0.72%
#1061 of 1077 Bottom 1.6% in 100M-500M tier