Minnesota Credit Unions

Member engagement presents a mixed picture for MN credit unions in Q1 2026. Member growth held at -0.39%, essentially stable quarter-over-quarter from -0.41% in Q4 2025 — a change of just 0.03 pp. However, the year-over-year comparison is stark: growth decelerated by 3.18 pp from +2.80% in Q1 2025 to the current negative reading. The cohort still outperforms the national benchmark of -0.65% by 26 basis points, but the trajectory from robust expansion to contraction within a single year warrants close attention from leadership.

Profitability was the standout story in Q1 2026. ROA increased to 0.87% from 0.78% in Q4 2025 — a gain of 9 bps — and is up 17 bps from 0.70% in Q1 2025, placing MN credit unions 20 bps above the national benchmark of 0.67%. NIM expanded to 3.74%, up 6 bps from 3.68% last quarter and up 19 bps from 3.55% a year ago, now 4 bps above the national 3.70%. The efficiency ratio rose modestly to 76.96% from 76.38% in Q4 2025, but remains a favorable 2.12 pp below the national 79.08%.

MN credit unions maintained broad-based growth momentum in Q1 2026, though the mix shifted. Asset growth decelerated slightly to 3.46% from 3.62% in Q4 2025 (QoQ), yet accelerated from 3.29% in Q1 2025 (YoY), sitting 82 bps above the national 2.64%. Loan growth decelerated to 1.58% from 2.30% in Q4 2025 but still leads the national 0.31% by 1.26 pp. Deposit growth accelerated to 3.09% from 3.00% in Q4 2025, outpacing the national 2.16% by 93 bps — signaling continued member confidence in deposit placement despite membership headwinds.

The risk profile for MN credit unions remained largely stable and favorable in Q1 2026. Delinquency held essentially flat at 0.66%, down just 2 bps from 0.67% in Q4 2025 and up only 3 bps from 0.63% in Q1 2025 — both changes classified as stable — and sits 12 bps below the national 0.78%. Charge-offs decreased to 0.24% from 0.30% in Q4 2025, a 6-bp improvement, and remain 11 bps below the national 0.35%. Net worth dipped 5 bps QoQ to 12.93% but is up 49 bps from 12.43% in Q1 2025, trailing the national 13.61% by 69 bps.

MN credit unions' portfolio composition reflects deliberate repositioning over the past year. First mortgage concentration stood at 25.05% in Q1 2026, down 0.48 pp YoY from 25.53%, yet still 2.90 pp above the national 22.15%. Indirect auto concentration declined to 6.37%, down 0.50 pp YoY from 6.88% and 0.12 pp from Q4 2025's 6.49%, remaining below the national 7.73%. Share certificates grew to 22.57%, up 1.06 pp YoY from 21.51%, exceeding the national 19.80% — suggesting members are locking in term rates, which may support NIM but could pressure future deposit flexibility.