South Dakota Credit Unions

Member engagement remains a clear strength for SD credit unions. Member growth of 0.56% in Q2 2026 decelerated from 1.03% in Q1 2026 (QoQ), but is essentially stable versus the 0.51% recorded in Q2 2025 (YoY), representing a difference of just 4 bps. Critically, this marks the ninth consecutive positive quarter of member growth since Q2 2024 — a sustained run that stands in sharp contrast to the national average of -0.69%. SD credit unions are actively gaining members while the broader industry contracts, a competitive advantage that signals strong community relevance.

Profitability in Q2 2026 presents a mixed but generally resilient picture. ROA of 0.93% was essentially stable quarter-over-quarter, edging up just 2 bps from 0.91% in Q1 2026, and remains 5 bps above the national benchmark of 0.89%. However, on a year-over-year basis, ROA has decreased by 9 bps from 1.03% in Q2 2025, signaling modest margin compression. NIM provided a bright spot, increasing 8 bps quarter-over-quarter to 3.92% from 3.84%, and is stable year-over-year versus 3.91% in Q2 2025, holding 18 bps above the national rate of 3.74%.

SD credit unions sustained broad-based growth momentum in Q2 2026. Asset growth of 4.66% decelerated modestly from 4.86% in Q1 2026 (QoQ) but accelerated meaningfully from 4.01% in Q2 2025 (YoY), extending a nine-quarter positive streak. Loan growth of 2.94% accelerated both quarter-over-quarter from 2.85% and year-over-year from 2.17% in Q2 2025, now in its fifth consecutive positive quarter. Both asset and loan growth rates substantially outpace national figures of 2.63% and 0.22%, respectively, positioning SD credit unions as among the more expansive cohorts in the country.

The risk profile for SD credit unions showed modest deterioration quarter-over-quarter but remains broadly stable year-over-year. Delinquency increased by 6 bps from 0.76% in Q1 2026 to 0.82% in Q2 2026 — a move that warrants monitoring — yet is effectively stable versus 0.83% in Q2 2025 (YoY change of -1 bp). At 0.82%, delinquency sits 5 bps below the national benchmark of 0.88%, a relative advantage. Net worth declined 7 bps quarter-over-quarter to 11.62% but improved 65 bps year-over-year from 10.98%, though the 2.19 pp gap below the national 13.81% remains a structural concern.

SD credit unions' portfolio mix reflects deliberate positioning in higher-yield funding and selective lending. Certificate concentration rose to 29.37% in Q2 2026, up 62 bps from 28.75% in Q1 2026 and up 1.16 pp from 28.21% in Q2 2025 — a significant premium to the national rate of 20.02%, suggesting members are actively locking in rates. First mortgage concentration of 17.85% is stable quarter-over-quarter (up just 3 bps) but increased 71 bps year-over-year from 17.14%, remaining well below the national 22.22%. Indirect auto exposure of 8.07% modestly exceeds the national 7.71%.