Montana Credit Unions

Member engagement weakened further in Q2 2026, with member growth registering -0.13% — decelerating from -0.03% in Q1 2026 (QoQ) and reversing from +0.23% in Q2 2025 (YoY). This marks the fourth consecutive quarter of negative member growth, last turning positive in Q2 2025. Despite the contraction streak, Montana credit unions hold a notable 56 bp advantage over the national benchmark of -0.69%, suggesting the broader industry is experiencing steeper membership declines. Still, the sustained negative trend signals a structural engagement challenge that warrants attention.

Profitability improved on both timeframes in Q2 2026. ROA rose to 0.88%, up 8 bps from 0.79% in Q1 2026 (QoQ) and up 6 bps from 0.81% in Q2 2025 (YoY), placing Montana credit unions just 1 bp below the national benchmark of 0.89%. Net interest margin also strengthened QoQ, rising 6 bps to 3.66% from 3.59% in Q1 2026, though it held essentially stable versus 3.66% in Q2 2025. NIM trails the national average by 8 bps. The overall profitability trajectory is encouraging, with ROA closing the gap to national levels.

Asset growth decelerated to 4.98% in Q2 2026 from 5.98% in Q1 2026 (QoQ), yet accelerated slightly from 4.83% in Q2 2025 (YoY), extending a positive streak to nine consecutive quarters since Q2 2024 — outpacing the national rate of 2.63% by 2.36 percentage points. Loan growth, however, turned negative at -0.25% in Q2 2026, decelerating sharply from 1.31% in Q1 2026 (QoQ) and from 2.25% in Q2 2025 (YoY), now 47 bps below the national benchmark of 0.22%. The divergence between robust asset expansion and contracting loan balances warrants close monitoring.

Montana credit unions maintained a favorable risk profile in Q2 2026, though delinquency edged upward on a year-over-year basis. The delinquency rate held essentially stable QoQ at 0.62%, up just 2 bps from 0.60% in Q1 2026, but increased 8 bps from 0.54% in Q2 2025 (YoY) — still 26 bps below the national benchmark of 0.88%. Net worth strengthened to 12.50%, up 31 bps from 12.19% in Q1 2026 and up 22 bps from 12.28% in Q2 2025, though it remains 1.31 percentage points below the national average of 13.81%. Capital buffers are building, but the YoY delinquency drift bears watching.

Portfolio composition shifted modestly in Q2 2026. First mortgage concentration declined to 20.04%, down 0.60 pp from 20.64% in Q1 2026 (QoQ) and down 0.18 pp from 20.22% in Q2 2025 (YoY), remaining 2.18 pp below the national benchmark of 22.22%. Indirect auto fell to 5.73%, down 0.52 pp year-over-year from 6.25% in Q2 2025, though it ticked up 0.10 pp from Q1 2026, and trails the national rate of 7.71%. Share certificate concentration eased to 17.99% from 18.14% in Q1 2026 (QoQ) but rose 0.42 pp from 17.57% in Q2 2025 (YoY), still 2.03 pp below the national level of 20.02%.