Minnesota Credit Unions

Member engagement showed mixed signals as growth remained stable at -0.41% from Q3 2025 to Q4 2025, representing only a 2 basis point decline. However, the year-over-year comparison reveals concerning deceleration from strong 6.87% growth in Q4 2024, indicating weakening member acquisition momentum despite outperforming the national average by 28 basis points.

Profitability metrics presented a mixed picture with ROA decreasing to 0.78% from 0.87% quarter-over-quarter, down 9 basis points. However, year-over-year performance remained strong, increasing from 0.66% in Q4 2024. NIM held stable at 3.68%, virtually unchanged from last quarter but up 30 basis points year-over-year, maintaining competitive positioning above national benchmarks.

Growth momentum accelerated across key metrics with asset growth reaching 3.62%, up from 3.10% last quarter and loan growth accelerating to 2.30% from 1.94%. However, year-over-year asset growth decelerated significantly from 8.05% to 3.62%. Deposit growth decelerated to 3.00% from 3.27% quarterly, though all metrics substantially outperformed national averages.

Risk indicators showed deterioration with delinquencies increasing to 0.67% from 0.57% quarter-over-quarter, up 10 basis points. Year-over-year delinquencies remained relatively stable at 0.67% versus 0.64%. Net worth ratios held steady at 12.98% both quarterly and increased 59 basis points year-over-year, maintaining adequate capital buffers despite trailing national levels.

Portfolio composition shifted toward real estate with first mortgage concentration increasing to 25.85% from 25.42% quarterly and up 71 basis points year-over-year. Certificate concentrations decreased slightly to 21.96% from 22.05% quarterly but increased 21 basis points annually. Indirect auto lending continued declining to 6.49%, down 64 basis points year-over-year, reflecting strategic repositioning.