Minnesotans Continue to Move to Credit Unions

Membership and Loan Growth Driven by Consumer Choice

ST. PAUL, MN (August 1, 2013) — Minnesota credit unions continued a trend of steady growth in the first half of 2013, maintaining gains in membership and loans.

Overall, Minnesota’s not-for-profit credit unions experienced mixed results in key financial performance indicators for the second quarter of 2013. However, modest economic growth is expected to improve credit union operating results during the remainder of the year.

Minnesota consumers and businesses also continue to choose credit unions as their primary financial institution – much the same as they are choosing local restaurants, food co-ops and other community-focused businesses.

“Minnesotans trust member-owned credit unions and have always been strong advocates for them,” Mark Cummins, MnCUN President & CEO. “Many consumers feel that credit unions are more aligned with their values rather than for-profit financial institutions.”


  • The latest available results show that Minnesota credit union membership grew by 6,000 in Q1 2013 to reach 1,579,000 – a 0.7 percent growth rate. This number, although slightly behind the pace of the 0.9 percent growth reported in the first quarter of 2012, illustrates consumers’ continued interest in the credit union business model.


  • Minnesota credit union assets declined by just four-tenths of a percent between Q1 2013 and Q2 2013, with 6.2 percent growth between Q2 2012 and Q2 2013. Minnesota credit unions’ total assets, despite a drop from 9.4 percent in 2012 to 7.6 percent in the first quarter of 2013, is well above the national average of 5.3 percent.
    • In Q1, Minnesota credit unions’ asset quality measures improved. Overall, the 60+ day dollar delinquency rate fell to 0.90 percent, a 0.19 percent decline compared to fourth quarter 2012. The Minnesota credit union delinquency rate is less than one half of that reported by Minnesota banks (1.82 percent)


  • Deposits at Minnesota credit unions decreased -0.4 percent in Q2 2013 from Q1 2013, but increased 6.9 percent year-over-year from Q2 2012 to Q2 2013. Minnesota credit unions’ core deposits grew from 40.1 percent in 2012 to 41.6 percent in the first quarter of 2013, continuing a long-term positive trend.

Total loans

  • Loan balances increased 2.7 percent in Q2 2013, up from a -0.5 percent decrease in the first quarter. Year-over-year loan growth was 4.4 percent between Q2 2012 and Q2 2013.
    • Additionally, despite the first quarter decrease in overall lending (-0.5 percent) credit unions’ member business lending grew at a rate of 1.6 percent during the same time frame.

Net Income

  • Minnesota credit unions are rated as “well-capitalized” by the National Credit Union Administration (NCUA), with a net worth of 9.99 percent. The NCUA considers a credit union as well-capitalized if its net worth is above 7 percent.

Credit unions submit quarterly data to NCUA. The summary and analysis above was compiled by the Minnesota Credit Union Network.

Credit unions support and strengthen communities
As local, not-for-profit cooperatives, credit unions return revenue to members in the form of fewer fees, lower rates on loans and higher rates on savings. Credit unions are not owned by a group of stockholders, meaning that all consumers – not just a select few – benefits.

The Minnesota Credit Union Network is an organization representing the state’s 133 not-for-profit cooperative credit unions serving more than 1.5 million member-owners in Minnesota. For more information, visit

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