Montana Credit Unions

Member engagement delivered a mixed signal in 2026-Q1. Member growth accelerated quarter-over-quarter, improving to -0.03% from -0.36% in 2025-Q4 — a recovery of 0.33 pp — suggesting the membership contraction is stabilizing. However, the year-over-year picture is notably weaker: growth decelerated 1.69 pp from 1.66% in 2025-Q1, crossing into negative territory. On the positive side, MT credit unions' -0.03% rate sits 62 basis points above the national benchmark of -0.65%, indicating Montana is outperforming a broader industry-wide membership headwind heading into mid-2026.

Profitability showed a mixed but broadly constructive picture in 2026-Q1. ROA increased to 0.79% from 0.73% in 2025-Q4 — a gain of 6 bps quarter-over-quarter — and stands 12 bps above the national benchmark of 0.67%. Year-over-year, however, ROA decreased 5 bps from 0.85% in 2025-Q1, reflecting margin headwinds. NIM decreased 9 bps quarter-over-quarter to 3.59% from 3.68% in 2025-Q4, though it remained essentially stable year-over-year, up just 2 bps from 3.57% in 2025-Q1. At 11 bps below the national 3.70%, NIM compression remains the primary profitability risk to monitor.

Asset growth momentum strengthened in 2026-Q1, accelerating to 5.98% from 5.69% in 2025-Q4 — a gain of 0.29 pp quarter-over-quarter — and sharply accelerated from 2.31% in 2025-Q1, a 3.67 pp improvement year-over-year. This places MT credit unions 3.34 percentage points above the national asset growth rate of 2.64%. Loan growth decelerated modestly, slipping to 1.31% from 1.44% in 2025-Q4, a 0.13 pp decline quarter-over-quarter, though it remains 1.00 percentage point above the national benchmark of 0.31%. Year-over-year loan growth data is unavailable for direct comparison.

The risk profile of MT credit unions showed improvement quarter-over-quarter but modest deterioration year-over-year in 2026-Q1. Delinquency decreased 0.10 pp to 0.60% from 0.70% in 2025-Q4, and remains a favorable 18 bps below the national 0.78%. However, delinquency increased 0.20 pp from 0.40% in 2025-Q1, signaling a gradual credit quality softening over the past year. Net worth decreased 6 bps quarter-over-quarter to 12.19% from 12.25% in 2025-Q4, yet increased 0.31 pp year-over-year from 11.88% in 2025-Q1. At 1.43 pp below the national 13.61%, capital adequacy remains an area requiring attention.

Portfolio composition shifted modestly in 2026-Q1. First mortgage concentration edged up 0.15 pp quarter-over-quarter to 20.64% from 20.49% in 2025-Q4, but declined 0.21 pp year-over-year from 20.85% in 2025-Q1, remaining 1.51 pp below the national 22.15%. Indirect auto concentration continued its retreat, falling 0.45 pp quarter-over-quarter to 5.63% from 6.08% in 2025-Q4 and 0.55 pp year-over-year from 6.18% — well below the national 7.73%. Share certificate concentration increased 0.20 pp quarter-over-quarter and 0.75 pp year-over-year to 18.14%, approaching but still 1.66 pp below the national 19.80%, reflecting continued deposit repricing pressure.