A Direct Line Blog

By Donya Parrish, MCU VP Risk Management

NCUA just released Call Report data from year-end 2024.  In releasing the fourth quarter 2024 results, newly designated NCUA Chairman Kyle S. Hauptman stated, “The growth in assets and insured shares is good news and reflects the strength and resiliency of the credit union system when operating within a mixed economic environment.” He specifically noted, “The NCUA is closely watching interest rates, delinquency rates, and inflation and their effects on the economy.” Chairman Hauptman further advised, “Credit union managers and directors should prepare for a variety of interest rate scenarios and economic conditions.”

What does it tell us about the state of credit unions in Montana and across the country? Here are a few trends of interest for our state:

• Our 42 Montana-domiciled, federally insured credit unions hold $7.6B in assets and serve 436,550 members
• Asset growth was 3.43%, compared to 4.59% nationally
• With only a 1.76% increase, our membership rate was a slower area of growth, and we continue to have a strong Members to Potential Members rating at 6.16% (compared to 2.85% for the U.S.)
• Loan growth came in fairly low at 2.97% in our state
• Net worth/assets are a strong 11.87% for our state; higher than the national 11.18% average
• Loan losses are increasing, but at a slower rate than some of the national figures. Delinquent loans to loans are at .52% in Montana with a national rate of .97% and Net Charge-Offs to Average Loans are also lower in our state (.22%) compared to a national trend of .80%

As you discuss trends relevant to your credit union’s strategic decisions at your board meetings, access the 15-minute America’s Credit Unions Macro Forecast & Economic Update Video each month on their website that details views on the economy and its impact on credit unions. Our partners at TruStage also provide a monthly “pulse check” on the state of the credit union marketplace. Those can be found here.