Minnesota Credit Unions

Member engagement showed meaningful improvement in Q2 2026. Member growth turned fractionally positive at 0.01%, recovering from -0.39% in Q1 2026 (QoQ acceleration of 0.40 pp) and from -0.35% in Q2 2025 (YoY acceleration of 0.36 pp). Critically, Minnesota CUs are outperforming the national cohort, which remains negative at -0.69% — a gap of 71 basis points in the state's favor. While the absolute growth rate is slim, the directional reversal signals stabilizing membership dynamics after consecutive quarters of contraction.

Profitability is the headline story for Minnesota CUs in Q2 2026. ROA reached 1.02%, up from 0.87% in Q1 2026 and 0.78% in Q2 2025 — a 15 bp quarter-over-quarter gain and a 24 bp year-over-year surge, placing the cohort 13 bps above the national benchmark of 0.89%. NIM held essentially stable at 3.78% versus 3.74% last quarter (a 4 bp move classified as stable), while rising meaningfully from 3.58% a year ago — now 4 bps above the national NIM of 3.74%. The combination signals durable margin expansion driving bottom-line outperformance.

Asset growth decelerated modestly to 3.22% in Q2 2026 from 3.46% in Q1 2026, though it remains virtually unchanged from the 3.21% posted in Q2 2025 — a stable YoY trajectory. Notably, this marks nine consecutive quarters of positive asset growth since Q2 2024, and the cohort leads the national rate of 2.63% by 60 basis points. Loan growth accelerated to 1.72% from 1.58% last quarter, extending a five-consecutive-quarter positive streak since Q2 2025, and sits 1.51 percentage points above the national loan growth rate of 0.22% — a substantial competitive advantage.

The risk profile shows a mixed picture in Q2 2026. Delinquency rose to 0.73% from 0.66% in Q1 2026 (up 7 bps QoQ) and from 0.67% in Q2 2025 (up 6 bps YoY), signaling a gradual deterioration that warrants attention — though the cohort remains 15 bps below the national delinquency rate of 0.88%. On the capital side, net worth strengthened to 13.43% from 12.93% last quarter and 12.68% a year ago, up 51 bps QoQ and 75 bps YoY, though it trails the national benchmark of 13.81% by 38 bps. Rising delinquency against improving capital is the key tension to monitor.

Minnesota CUs' portfolio composition shifted modestly in Q2 2026. First mortgage concentration rose to 25.41%, up 0.36 pp from 25.05% in Q1 2026 and up 0.30 pp from 25.11% in Q2 2025 — well above the national rate of 22.22%. Indirect auto edged up 6 bps quarter-over-quarter to 6.44% but declined 0.23 pp year-over-year from 6.67%, remaining below the national 7.71%. Share certificate concentration decreased 0.66 pp from Q1 2026 to 21.91%, though it rose 0.22 pp year-over-year from 21.69%, modestly above the national 20.02%. The shift suggests a continued tilt toward longer-duration mortgage assets.