North Dakota Credit Unions

Member growth at North Dakota credit unions remained negative in Q2 2026 at -0.73%, extending a streak that has now run seven consecutive quarters since 2024-Q4, when the cohort last posted a positive reading of +0.64% in Q3 2024. That said, the trend is improving: the rate accelerated by 0.31 percentage points from -1.04% in Q1 2026 (QoQ), and by 0.51 percentage points from -1.24% a year ago in Q2 2025 (YoY). At -0.73%, the cohort sits just 4 basis points below the national benchmark of -0.69%, suggesting the gap is narrowing but not yet closed.

Profitability was a clear bright spot for North Dakota credit unions in Q2 2026. ROA increased to 0.98%, up from 0.85% in Q1 2026 (QoQ) and up from 0.81% in Q2 2025 (YoY), placing the cohort 9 basis points above the national average of 0.89%. Net interest margin also improved, rising to 3.47% from 3.38% last quarter (+9 bps QoQ) and from 3.30% a year ago (+0.17 pp YoY). While NIM remains 27 basis points below the national benchmark of 3.74%, the consistent upward trajectory on both ROA and NIM signals strengthening earnings fundamentals.

Asset growth accelerated sharply in Q2 2026, reaching 3.33% — up 1.29 percentage points from 2.04% in Q1 2026 (QoQ) and up 0.36 percentage points from 2.97% in Q2 2025 (YoY), marking nine consecutive quarters of positive asset growth since Q2 2024 and outpacing the national benchmark of 2.63%. Loan growth, however, remains a persistent drag: at -1.02%, it has been negative for five consecutive quarters since Q2 2025, though it is improving — accelerating 1.05 percentage points from -2.08% last quarter and 1.70 percentage points from -2.72% a year ago. The cohort trails the national loan growth rate of 0.22% by 1.24 percentage points.

The risk profile for North Dakota credit unions deteriorated meaningfully in Q2 2026, with delinquency surging to 1.03% from 0.46% in Q1 2026 — a sharp 0.57 percentage point increase quarter-over-quarter — and rising 0.25 percentage points from 0.78% in Q2 2025 (YoY). At 1.03%, the delinquency rate now exceeds the national benchmark of 0.88% by 15 basis points. Offsetting this, the net worth ratio strengthened to 13.64%, up 0.23 pp from 13.41% in Q1 2026 and up 0.46 pp from 13.17% in Q2 2025, though it remains 17 basis points below the national average of 13.81%, providing a partial capital cushion against credit stress.

North Dakota credit unions' portfolio composition shifted modestly in Q2 2026. First mortgage concentration declined to 16.21% from 16.50% in Q1 2026 (-0.29 pp QoQ), though it edged up 0.13 pp from 16.07% in Q2 2025 (YoY); at 16.21%, it trails the national benchmark of 22.22% by a wide margin. Share certificate concentration rose to 22.69%, up 0.23 pp from Q1 2026 and up 0.53 pp from Q2 2025, now exceeding the national average of 20.02% — reflecting continued member preference for rate-sensitive deposits. Indirect auto lending remains minimal at 1.16%, stable versus a year ago (+0.03 pp YoY) and well below the national 7.71%.