North Dakota Credit Unions

Member engagement deteriorated on both a quarterly and annual basis in Q1 2026. Member growth decelerated to -1.04% from -0.89% in Q4 2025 (QoQ) and from -0.77% in Q1 2025 (YoY), now running 40 bps worse than the national rate of -0.65%. Members per employee fell to 247.12% in Q1 2026 from 257.30% in Q4 2025, a decline of 3.96 pp, and sits 97.35 pp below the national benchmark of 344.47%. The cohort is shrinking its membership base while staffing levels hold steady — a combination that pressures long-term growth capacity.

Profitability is the cohort's clearest strength heading into 2026. ROA increased to 0.85% in Q1 2026 from 0.78% in Q4 2025 — a gain of 7 bps QoQ — and is up 25 bps from 0.60% in Q1 2025, placing the cohort 18 bps above the national benchmark of 0.67%. NIM followed a similar trajectory, rising to 3.38% from 3.29% in Q4 2025 (+9 bps QoQ) and from 3.20% in Q1 2025 (+18 bps YoY). While NIM trails the national average of 3.70% by 32 bps, the consistent upward trend suggests improving margin management across the cohort.

Growth dynamics weakened in Q1 2026. Asset growth decelerated to 2.04% from 2.35% in Q4 2025 (QoQ) and from 4.62% in Q1 2025 (YoY) — a sharp 2.57 pp annual deceleration — leaving the cohort 59 bps below the national asset growth rate of 2.64%. Loan growth remained effectively stable at -2.08% in Q1 2026 versus -2.06% in Q4 2025, a negligible change of -2 bps, and trails the national rate of 0.31% by 2.39 pp. The combination of contracting loan balances and decelerating asset growth signals that balance sheet expansion is under meaningful pressure.

The risk profile improved sharply in Q1 2026, representing the cohort's most favorable development this quarter. Delinquency decreased to 0.46% from 0.95% in Q4 2025 — a 49 bp QoQ improvement — and fell 74 bps from 1.20% in Q1 2025, now sitting 32 bps below the national delinquency rate of 0.78%. Net worth also strengthened, increasing to 13.41% from 13.32% in Q4 2025 (+9 bps QoQ) and from 12.82% in Q1 2025 (+59 bps YoY). At 13.41%, net worth trails the national average of 13.61% by just 21 bps, reflecting a well-capitalized cohort with improving credit quality.

Portfolio composition shifted modestly in Q1 2026. First mortgage concentration increased to 16.50% from 16.25% in Q4 2025 (+25 bps QoQ) and from 16.36% in Q1 2025 (+14 bps YoY), though it remains well below the national average of 22.15%. Share certificate concentration edged down to 22.46% from 22.59% in Q4 2025 (-13 bps QoQ) but increased 87 bps from 21.59% in Q1 2025, now 2.66 pp above the national rate of 19.80% — suggesting members are favoring term deposits. Indirect auto concentration held stable at 1.07%, down just 3 bps YoY, and remains far below the national rate of 7.73%.