Before joining Firelands Federal Credit Union ($554.6M, Bellevue, OH) as chief financial officer in 2023, Don Rositano built a career at the intersection of banking and membership-driven retail, shaping how he approaches value, pricing, and performance.

Before entering the credit union space, Rositano spent more than a decade with Sam’s Club, where he led finance for a $2.2 billion division. That environment, where members pay for access and expect clear value in return, mirrors the credit union model more than it might seem, he says — and reinforced a core belief he carries into his current role: get value right for members, and the financial results follow.

Personal And Professional Journey

What attracted you to the credit union industry?

Don Rositano: I am fortunate to have been the CFO of two different community-based banks and most recently was the senior finance manager of a $2.2 billion division of Sam’s Club out of Bentonville, AK.

I loved working for Sam’s, but Cleveland is my home. My family and kids are here, and we were ready to be closer to them. When the CFO opportunity at Firelands came up, I felt my banking and membership experience would dovetail nicely. At Sam’s, we understood members pay for the privilege to shop there; that’s our philosophy at the credit union, too.

What has surprised you about working in the credit union space?

DR: One of the biggest surprises is that profitability is not the focus, people are. In my prior position, I had to reforecast our profit and sales projects every week, and we needed to produce solutions if we were suffering a shortfall.

At Firelands, although we need profits to fund growth, serving our members is our priority goal, and we forecast to meet their needs. Our profitability is a by-product of those relationships. In the three years I’ve been here, our cumulative annual growth rate is 10.46% — without mergers or adding branches — and our ROA has jumped from 0.66% to 1.41% year-to-date.

The Credit Union Learning Curve

How would you compare the culture of credit unions to your previous industry?

DR: There are a lot of similarities between Sam’s Club and Firelands. Both companies are driven to provide ultimate value to their members and to curate product offerings to reduce confusion and maximize value. Many companies like to provide products and services that have all these bells and whistles when what most members want is a great product at a great price.

Did you have any misconceptions about credit unions when you joined?

DR: As a former banker, my viewpoint was limited by industry misconceptions. I felt credit unions were behind in innovation and technological sophistication. Credit unions were the institutions you went to for auto lending and Christmas Club accounts.

The longer I’ve been in this position, I realize how wrong I was. Credit unions can master the balance of national competition, service, and evolving technology while still taking care of and seeing the member as an individual instead of a number.

What challenges did you face transitioning into the credit union space?

DR: Credit union jargon. Calling deposits “shares” and interest “dividends” has taken me a while. I’ve also had to change my thinking about profitability and service. I’ve spent a lot of time on nonprofit boards, and I love this serving philosophy in our company.

Leadership And Strategy

How did your prior financial services experience shape your leadership approach at the credit union?

DR: At Walmart, there would always be times when other retailers were cheaper, and we understood that. We wanted to be the consistent price leader, not chase a short-term discount. At Firelands, we’ve been trying to position ourselves so members are better off overall with our products than anywhere else.

For example, in my first year, we increased our primary share rate well above the rest of our competitors. We were able to create some savings in one of our expense categories and instead of dropping those savings to our bottom line, we reinvested them in higher yields on members’ dividends.

What lessons or strategies from your career have proven most valuable in your credit union role?

DR: At Sam’s I learned the importance of viewing pricing specials as an investment versus a cost. The goal is to offer something well-priced and use this as a gateway to have them experience more of the club.

I’ve used that same mindset at the credit union, and we have offered aggressive CD rates for shorter terms of four to seven months. We’ve found we do not lose this money when the CD expires, and the higher rate inspires higher loyalty.

We also never have a special only for new money. That tells existing members they are not as important. We’re in it for the long term. Our mindset has resulted in gaining greater share of our existing members’ wallet.

In addition, we offer a well-priced money market account where our highest yield right now is 3%. Our money market accounts have grown 40% in 2024 and 30% in 2025. Our members want an excellent rate but also want liquidity and freedom to move their money.

As a bonus, I enjoy paying a lower rate versus CDs and appreciate the flexibility to adjust rates based on market ebbs and flows.

What aspects of leading a credit union required a completely new mindset or skillset for you?

DR: Sam’s is a destination club. When I left, it had around 600 clubs throughout the nation. It can afford to invest in the largest markets because members will come. When I worked in a club, we had members who would come from 60 miles away every month to stock up.

However, many credit union members need physical closeness of a local branch. Not that they necessarily use it, but they want the comfort of knowing it is there when they need it.  We are investigating ways to meet those needs while balancing the high costs of an extensive branch network.

Members-First Focus

How did you adapt to the members-first model? Are there parallels to your previous roles?

DR: I came from a member-focused organization. It bothers me when I see financial institutions focus more on profits than customers. For example, we have many banks around us that might offer a nice special CD rate, but they keep their basic rates below 1%. If a customer does not inquire, they will go from a 4% special down to a 0.15% CD rate as it rolls over. I find that unethical and anti-customer.

How have you helped improve member engagement or services?

DR: We are looking forward to making some adjustments to our checking accounts. Members want a payment mechanism at a low cost. We listened to what members are asking for, and we’ll be adding member send capabilities for both RTP and FedNow.

There’s fraud risk with these payment streams, and frankly, we need to be OK with some losses to offer these services. If we don’t, members will move to other financial institutions or fintechs that offer them. In the next few years, it is going to be a requirement as a financial institution to be in business. The writing is on the wall; I don’t want to be left behind.

Advice And Future Outlook

What advice do you have for someone considering an executive role in a credit union, especially if they’re coming from another industry?

DR: Be open to the process and understand it can be tough because we answer to members and not to shareholders. The most critical thing they need to understand is that we need to be member focused.

If you do what’s right for the members, they appreciate it and the business will grow. It’s satisfying hearing other bank employees say how wonderful we are and if they cannot do something, they refer the customer to us.

You also need to be active in the community. I’ve walked in parades; I’ve manned an inflatable slide at a community festival. If you have no desire to be part of the community, then maybe a credit union is not for you. We’ve assumed many leadership positions that community banks used to lead.

How might your prior experience help shape the future of your credit union’s strategy?

DR: I’ve been the main proponent of bringing in a data warehouse. I’ve seen the power of analytics and the ability to drive business through understanding our own membership base. A warehouse lets you see where you should focus your limited resources to help the most members, and that can drive your growth.

Harvard did a study a while back that showed the more options you offer a customer, the more confused they become about what to buy. And sometimes they purchase nothing.

I looked at our product line at Sam’s and noticed we had several products that were not profitable. We reduced our product line by more than 40%, saw a 1% to 2% reduction in sales over the next 12 months, but saw a 25% profit improvement. It also set up the division in the following years to increase sales faster than the rest of the market.

Personal Reflections

What’s been the most fulfilling part of working in the credit union space?

DR: I love our place in the community. Our CEO goes to different county fairs and makes sure each 4H participant gets a fair price for their entry. We’ve spent $75,000 on these fairs, but the smiles on the participants’ faces are priceless. We’re the champions of the underdog and pride ourselves in making sure no one is left behind.

If you could give yourself advice on your first day at a credit union, what would it be?

DR: Don’t get too anxious to perform. Learn the culture of the credit union and look for ways where you can enhance it. Enjoy the ride. It’s a rewarding experience.

This interview has been edited and condensed.

What can you learn from like-minded leaders? Don Rositano’s path from Sam’s Club to credit union CFO is a reminder that the best strategic instincts often come from unexpected places. Callahan Roundtables put credit union finance executives in the same room to share what’s working, pose hard questions, and learn from peers navigating the same challenges. Learn more and register.

The post Insights From The Outside: Don Rositano appeared first on CreditUnions.com.

I recently spent some time catching up on the latest industry insights here on CreditUnions.com, specifically regarding the strategic priorities guiding credit union executives as they continue through 2026 and beyond. It’s clear that while the specific technologies change, the fundamental question keeping credit union leaders up at night remains the same: How do we stay relevant in an increasingly crowded landscape?

That question is one I’ve spent the better part of my career answering. My perspective was shaped first from the inside as an industry sales executive, and over the past decade, as a co-founder and partner of Arriba Advisors. During my time on the vendor side, I realized my true calling lived beyond just managing tech and that my passion was advocating for the financial institutions that serve as the backbone of our economy. I saw firsthand how often credit unions were at a disadvantage.

Current industry analysis points toward two clear priorities for 2026: a growth mindset and a sharp tech focus. I couldn’t agree more. But after a decade of helping financial institutions negotiate more than 2,000 contracts, we’ve learned you can’t achieve one without mastering the other.

Growth Mindset Needs A Modern Engine

There is a major emphasis right now on organic growth through digital channels. This is the right move, but the fact is, a growth mindset is only as effective as the core that powers it.

If your growth mindset is being held back by a legacy core or a digital banking suite that feels like a relic of 2016, you’re fighting an uphill battle to not only attract new members but also retain current ones. Many executives believe they are too locked into their current situation or that a full core processing evaluation is too strenuous to undertake.

I won’t sugarcoat it: the evaluation process is strenuous. Identifying the right technology partner requires a deep dive into functional requirements, future scalability, and cultural alignment. However, it is also the only way to ensure your digital transformation creates a seamless member experience.

The process is crucial to identify a technology partner that can actually enable your specific strategic goals.

Tech Focus: The Hundred-Vendor Web

The second priority often discussed today is a refined focus on technology, specifically regarding fintech partnerships and AI enablement. The common challenge is determining where technology creates real value.

From my perspective, the challenge is also how you manage the complexity of those choices. Today, a credit union with less than $1 billion in assets often oversees between 100 and 300 different vendors. That’s an enormous portfolio of contracts, renewal dates, pricing structures, and performance obligations.

And, most of those vendors negotiate these agreements every day; your team does not. This is where the balance of power can quietly shift.

Now more than ever, vendor contract negotiation is about ensuring that when you commit to a technology partner, the terms of that relationship actually reflect your institution’s leverage, your goals, and your long-term interests. We know where vendors have room because we’ve sat on that side of the table.

Real value is only realized when the contract protects your interests, ensures service-level accountability, and provides an exit strategy that doesn’t feel like a ransom.

How Credit Unions Level The Playing Field

The current roadmap for credit unions demands the right technology, the right partners, and the right guidance. At Arriba Advisors, that’s precisely what we provide through partner-level engagement and a track record of more than 2,000 negotiated contracts representing millions in annual value.

The roadmap is in front of you. We’re here to help you execute it.

Tom Russell is a co-founder and partner at Arriba Advisors, a strategic advisory firm that helps credit unions optimize member experience and achieve sustainable growth. With deep industry expertise, Arriba Advisors guides financial institutions through technology assessments, vendor evaluations, contract and price negotiations, and much more Contact him at trussell@arribaadvisors.com.

The post Growth Is A Mindset, But Success Is In The Contract appeared first on CreditUnions.com.

First quarter data reflects an industry at a crossroads. Systemic risks are real, but many credit unions are meeting them from a position of genuine strength: solid margins, healthy capital, and deepening member relationships. Now, cooperatives must decide where to direct that strength.

The analyst team at Callahan & Associates has spent the past several weeks parsing the latest 5300 Call Report data and stress-testing 2025 results against an increasingly turbulent macroeconomic backdrop. Shifting interest rate expectations, persistent affordability headwinds, and ever-greater member expectations are quietly reshaping balance sheets across the industry.

This week, the Callahan Financial Performance Series cuts through the noise to focus on what matters most heading into 2026. In the days ahead, watch for expert coverage on:

• Reading The Macro Tea Leaves — Inflation, employment shifts, and rate movements are making headlines and changing how households view their finances and their financial relationships. Here’s what the latest economic signals suggest about member behavior in the months ahead. Read “Wages Are Growing. Wallets Are Not.”
• Margins Hold Strong — Despite an uncertain future rate environment, credit unions are posting strong earnings with capital positions to match. We break down what’s driving the outperformance, whether it’s built to last, and what it means for capital management and member investment. Read “Credit Unions Are Having A Margin Moment.”
• New Members Are Hard to Find — Credit unions are deepening relationships with existing members. That’s the good news. They’re also struggling to recruit first-time members in a world of social media noise and algorithm-driven banking. Where are credit unions making a real difference in members’ lives? And how can they use that to connect with younger would-be members? Read “Where Have All The Members Gone?”
• Need-To-Know Performance Highlights — Consumer expectations, technology adoption, and competitive pressure are converging fast. These five insights highlight where leaders are focusing now and what might come next. Read “5 Takeaways From Credit Union Performance Data.”

What trends are top of mind at your institution? Tell us how your credit union is navigating this environment, and we might feature your story on CreditUnions.com.

The post The Numbers Are Good. The Moment Is Hard. appeared first on CreditUnions.com.

Credit union balance sheets continue to tell a largely positive story, but member finances are under growing pressure. Stable employment has kept the worst outcomes at bay, yet higher prices for housing, transportation, and everyday necessities are steadily eroding purchasing power.

On paper, wage growth looks like a bright spot. In practice, inflation continues to absorb much of those gains, limiting real income growth and leaving many households with far less financial flexibility than headlines suggest.

WAGE GROWTH VS. INFLATION
FOR U.S. WORKERS | DATA AS OF 03.31.26
SOURCE: FEDERAL RESERVE BANK OF ATLANTA | BUREAU OF LABOR STATISTICS

• The divergence between wage growth and inflation highlights one of the most consequential macroeconomic trends for credit unions: real income pressure. Although nominal wages have risen, inflation absorbed much of those gains from 2022 to 2023, reducing purchasing power. According to the Bureau of Labor Statistics, inflation-adjusted wages and salaries for private industry workers have increased just 0.1% in the past 12 months. Despite a stable unemployment rate, the disparity between wages and inflation can negate many benefits of job security.
• With inflation cutting into wages, members turned to savings and credit to cover everyday expenses. Even as inflation has moderated, the cumulative erosion of real income has left household wallets thinner than headline wage figures imply. Credit card balances in the first quarter increased 2.6% annually, suggesting members are turning to credit for a financial cushion.
• From an asset quality perspective, compressed real wages heighten member vulnerability. Although credit card delinquency remained nearly unchanged at 2.03% from one year ago, its makeup is changing. The share of late-stage delinquency — defined as more than 60 days past due — has increased to 64.8% of total delinquent credit card dollars. That’s the highest reported by credit unions in more than 20 years. This signals a migration toward deeper delinquency, where financially strained members are less able to catch up once they miss payments.

Wage dynamics are only one piece of the picture. Housing affordability, energy costs, consumer confidence, and savings behavior are also shaping how members experience today’s economy and how those pressures show up on credit union balance sheets. Read more about that on the client portal.

When members know you care, they stay. The late-stage delinquency data in this article suggests households are running out of room. Gallup research shows emotionally engaged members are far more likely to trust their credit union as a financial partner when stress peaks. Callahan and Gallup equip credit unions to build that trust intentionally so members turn to you first when it matters most. Read more today.

The post Wages Are Growing. Wallets Are Not. appeared first on CreditUnions.com.

Credit unions wrapped the first quarter of 2026 from a position of balance sheet strength despite persistent uncertainty in the broader U.S. economy. Although margins have benefited from favorable rate dynamics, the most durable advantage might be capital itself.

Accumulated earnings and disciplined balance sheet management have pushed net worth and capital ratios to multi year highs — creating flexibility at a time when many households remain under financial pressure.

NET WORTH AND OTHER CAPITAL
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

• Capital ratios are at five year highs, reinforcing credit unions’ ability to absorb volatility while maintaining confidence among regulators, members, and markets. Capital is doing its job as a stabilizer in an uncertain macro environment.
• Strong capital reflects earnings durability, not one‑time gains. Elevated margins and controlled expense growth have steadily flowed into net worth, strengthening the balance sheet quarter after quarter.
• Excess capital creates choice as well as urgency. Although it’s prudent to build a robust buffer, holding capital indefinitely carries opportunity cost. In a prolonged period of uncertainty, the strategic question shifts from preservation to purpose.
• Well‑capitalized credit unions can play offense, using capital to support pricing relief, reinvest in technology and service delivery, or expand access through new products and markets — all without compromising safety and soundness.

How do macro trends influence credit union performance? Interest rates, labor market shifts, inflation, and delinquency trends all influence credit union performance. A free 30-day Peer Suite Premium trial helps leaders benchmark results against national economic indicators like rates, unemployment, and delinquency trends to better interpret performance in broader economic context. Start your 30-day trial.

The post Credit Unions Are Having A Margin Moment appeared first on CreditUnions.com.

For years, credit union membership growth was one of the clearest signals of the movement’s strength. That momentum is beginning to shift.

Annual membership growth in the first quarter slowed to 1.81%; that’s one of the weakest levels in years. Some institutions even reported quarterly declines. Perhaps counterintuitively, though, this isn’t a story of disengagement. Consumers are still borrowing, saving, and opening accounts. What’s changed is how they build relationships.

Consumers are increasingly spreading their financial activity across multiple providers, making it harder for credit unions to capture primary relationships. At the same time, credit unions are pulling back from traditional acquisition channels like indirect auto lending, further reducing membership inflow.

Yet the industry is still growing. Loan and share growth remain relatively strong, thanks not to new members but deeper relationships with existing ones. As credit unions shift from growing headcount to fattening wallet share, they must focus on achieving PFI status as much as on attracting members in the first place.

MEMBER GROWTH VS. SHARE GROWTH VS. LOAN GROWTH
FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.26
SOURCE: CALLAHAN & ASSOCIATES

• Membership growth in the first quarter of 2026 slowed to 1.81%, marking a steady decline from prior years.
• Loan growth has picked up after a sharp post-peak decline. It was 5.13% as of March 31, signaling steady borrowing demand.
• Share growth has normalized from elevated pandemic-era levels and has settled around 4.66%, reflecting a more typical deposit environment.
• Loans and shares are growing two to three times as fast as membership, indicating new members are no longer driving growth. Instead, the industry is shifting toward deeper relationships.

When members know you care, they stay. As financial relationships fragment across providers, the credit unions earning PFI status are building emotional trust as much as they’re competing on rates or products. Gallup research shows emotionally engaged members are 5.4 times more likely to stay and 2.5 times more likely to hold multiple products, exactly the depth of relationship credit unions need most right now. Learn more.

The post Where Have All The Members Gone? appeared first on CreditUnions.com.

Join Callahan & Associates, a leading provider in credit union performance measurement, for a live, datadriven look at 1Q26 industry performance, grounded in the latest call report insights and informed by the broader economic and operating environment.

Why Watch Trendwatch?

Trendwatch is built for leaders who want more than highlights. Our experts go beyond reporting the numbers to enable credit union leaders with meaningful context to understand what performance results signal about risk, resilience, and opportunity across the movement. The insights shared during this session are designed to support confident decision‑making and strengthen leadership conversations throughout the organization.

See The Full Story Behind 1Q26 Performance

Much of the data presented during Trendwatch is gathered from Callahan’s performance measurement tool, Peer Suite. Interested in seeing how industry performance compares to your credit union? A free 30-day trial of Peer Suite’s Premium gives you dashboards, custom peer groups, historical performance context, and institution-level HMDA to help you interpret results and support more informed decisions.

Start Free 30-Day Trial

The post Trendwatch 1Q26 appeared first on CreditUnions.com.

No. 1: Consumers Need Support Now More Than Ever

INDEX OF CONSUMER SENTIMENT
FOR 900-1,000 MONTHLY WEB INTERVIEWS | DATA AS OF MARCH 2026
SOURCE: UNIVERSITY OF MICHIGAN SURVEYS OF CONSUMERS

• After a brief rebound in early 2024, the Index of Consumer Sentiment declined steadily throughout 2025 and into 2026. The reading of 55 in March 2026 was even lower than the peak days of the COVID pandemic and signals genuine household anxiety rather than routine fluctuation. When consumer outlook is this uncertain, households often pull back on borrowing, delay major purchases, and prioritize liquidity.
• Of course, social media and the 24-hour news cycle can skew the perception of economic health away from household reality. Indeed, certain segments of the economy are doing OK; unfortunately, others are hurting. With this context, it’s important to remember that macroeconomic data represents the average and credit unions serve those on the lower end of that economic spectrum.
• For credit unions, today’s reality is both a warning and an opportunity. Members under financial stress are more likely to need guidance, restructuring options, and financial counseling. Institutions that show up proactively — rather than waiting for delinquencies to surface — will deepen loyalty when it matters most.

Watch Trendwatch on demand today. Did you miss this quarter’s live Trendwatch webinar? No worries! Catch it on demand. Learn about first quarter performance trends from industry experts and take note of the practical insights you can act upon today to strengthen strategy, serve members better, and perpare for what comes next. Watch Trendwatch today.

No. 2: Member Growth Is Historically Low; Confounding Factors Are At Play

ANNUAL MEMBER GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

• Membership growth remains sluggish despite a slight uptick in the first quarter. Much of the prior-year volume came from indirect lending — a channel that’s often expensive and ill-suited to building lasting relationships. Credit unions have pulled back from indirect lending and now must find new ways to tell their story and fill their lending pipelines.
• Membership growth is diverging by asset size — smaller credit unions are posting rates as low as -0.5%, whereas larger peers hold near 1.8%. Scale plays a role, but so does an education gap: younger members increasingly don’t know what they’re missing. Smaller credit unions have the opportunity to make the case for community finance to a generation that hasn’t heard it yet.
• On the bright side, relationships with existing members are deepening. Products per member and average relationship balances are up, as are most product penetration rates. In short, fewer new members might be joining the movement, but credit unions are still heavily supporting their core member base.

No. 3: First Mortgages Are Carrying Loan Growth

YEAR-TO-DATE LOAN ORIGINATIONS
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

• Year-to-date loan originations hit $152.6 billion as of the first quarter of 2026; that’s a 13.6% increase from this time last year.  First mortgages have been doing the heavy lifting. As rate cuts filter through the housing market — and prices stabilize in many markets as wages partially catch up — demand for homebuying and refinancing is returning.  Credit unions with a strong mortgage infrastructure are well-positioned to capitalize on this trend, especially in the relationship-driven refinance space where credit unions historically thrive.
• Other real estate and commercial real estate categories contributed to loan growth to a lesser degree. Auto lending, which dominated origination activity in prior years, is notably absent as a growth driver — a reflection of the industry’s retreat from indirect lending, tariffs, elevated vehicle prices, tighter consumer budgets, and the continued hangover from pandemic-era buying behavior.

No. 4: Asset Quality Is Improving … Seasonally, At Least

ASSET QUALITY RATIO
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

• Credit unions reported the typical first quarter improvement in the asset quality ratio. Net charge-offs and delinquencies ticked down from elevated year-end levels. Delinquency ratios came in at 0.81%, whereas net charge-offs settled at 0.84%, for a combined ratio of 1.65%. These numbers are better than the fourth quarter of 2025 but remain higher than pre-pandemic norms.
• First quarter seasonality is relevant. Tax refunds, holiday debt payoffs, and January financial resets temporarily reduce delinquency. The real test will come in the second and third quarters when the buffer fades and credit unions will see if consumer sentiment reflects repayment reality. The good news? The industry remains well-covered for delinquency and has a strong net worth on average. The cushion is there to help struggling members at a time when banks or other financial institutions might turn them away.

No. 5: Now Is The Time To Build Capital And Invest Strategically

OPERATING EXPENSE RATIO VS. NET INTEREST MARGIN, ANNUALIZED
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

• The gap between the net interest margin and the operating expense ratio is the widest it’s been in decades — a 0.33 percentage point spread that reflects the unusual and favorable environment credit unions have been operating in since rates began rising in 2022. For now, this margin cushion is providing real earnings flexibility.
• Even with slowing non-interest income revenue, and increasing provision expense, credit union ROA is up to 0.85% annualized. This is a relatively high return on assets, giving the industry some freedom to build allowance and net worth cushions.
• However, pressures are building from both directions. If rates ease, asset yields historically compress. Meanwhile, operating expenses rarely come down for long — technology investments, staff costs, and compliance burdens continue to climb with inflation. Credit unions that treat today’s margin environment as permanent could be caught off guard. In the meantime, the window to build capital, invest strategically, and reduce structural cost is still open. Effective investment in operational efficiency is a key way to manage expanding operating costs.

See the patterns behind this quarter’s trends. Trendwatch highlights key themes drawn from industrywide data. Peer Suite’s Premium level helps leaders evaluate their credit union’s performance across the same core metrics, using handpicked peer groups and deeper context to support understanding and discussion. Start your free 30-day trial.

See You Next Quarter! CreditUnions.com updates this page with the freshest FirstLook credit union data every quarter, so don’t forget to come back for insights into the second quarter of 2026.

The post 5 Takeaways From First Quarter Credit Union Performance Data appeared first on CreditUnions.com.

Top-Level Takeaways

• Equity markets hit new highs in April despite the ongoing Iran conflict and high fuel costs.
• The AI infrastructure buildout was a significant tailwind for first quarter GDP growth, but all other business investment has been subdued.
• Kevin Warsh’s nomination for Fed chair moved past an important hurdle last week; Jerome Powell will remain on the Federal Reserve Board of Governors for the time being.

The S&P 500 reached a new all-time high on April 30 despite the ongoing conflict with Iran and oil prices exceeding $100. The large-cap equity benchmark generated a 10.5% total return in April, a 2x reversal of its March slump. This might seem like irrational exuberance on the part of investors with gas prices on a steady rise, but there are ample tailwinds for the U.S. economy, most notably the massive digital infrastructure buildout occurring as part of the artificial intelligence (AI) sprint.

The latter was clear in the first quarter GDP report. Business investment contributed 1.5 percentage points to the top-line GDP growth rate of 2% quarter-over-quarter (annualized), and it was entirely driven by AI infrastructure spending. In real nominal terms, business investment rose $92.6 billion in the first quarter, including an increase of $110 billion in information processing equipment and software. Yes, this means all other investment was down $17.4 billion.

Lower non-AI business investment ties into another of our 2026 economic themes. Heading into the pivotal midterm elections, we expected things to be quieter on the policy and political front. Initially, we thought this would potentially spark broader business investment that had been lacking over the prior year amid heightened uncertainty (tariffs, immigration, etc.).
Although things have been quieter regarding trade and immigration, the Iran conflict and consequential rise in oil prices have introduced a new layer of uncertainty for business investment outside of the AI buildout. If we’re doing early scoring, that first theme would appear to be a fail, but the year’s not over yet.

Visit ALM First to read more about the latest economic data and overall monthly market trends.

Jason Haley joined ALM First in 2008 and is the firm’s chief investment officer. He heads ALM First’s Investment Management Group (IMG), which is responsible for leading the investment process and investment theme development. Haley also oversees all capital markets activities, including portfolio management, trading, market research and commentary, and execution of hedging and funding strategies for the firm’s depository clients. He holds an MBA with a concentration in finance and a BBA with a concentration in marketing, both from The University of Mississippi.

Not an offer for investment advisory services. This content is provided for general educational information and market commentary purposes only.

The post New Highs For Equity Markets Despite Iran And Oil Prices appeared first on CreditUnions.com.

St. Cloud Financial Credit Union ($430.0M, Sartell, MN) has quickly evolved from early adopter to advocate when it comes to digital assts.

The Minnesota-based cooperative has built a core-integrated digital asset vault, connected to multiple blockchain networks, and even launched its own stablecoin. But CEO Jed Meyer is quick to clarify this isn’t about chasing crypto because it’s new and buzzy.

“We never set out to be a trailblazer,” he says. “We always start with our member and work outward.”

This time, it started with a market penetration problem.

In 2019, the credit union had roughly 23,000 members in a market of 200,000 people and nearly 40 competing financial institutions. Through strategic planning sessions, two priorities emerged: to better serve underserved populations through customized products, and to understand where member money might be going next.

That second priority led the credit union to digital assets.

“We were seeing some deposit outflows,” Meyer says. “Not a ton, but enough to ask, ‘what are we going to do?’”

In 2023, approximately $1 million in deposits flowed from St. Cloud Financial to exchanges. In 2024, that number jumped to $15 million.

“That’s a 15x trend of liquidity outflows,” Meyer says.

Across the industry, the CEO estimates roughly 3% of deposits might already be leaving for digital asset platforms with no guarantee of return.

“With every innovation in the past 100 years, we were still needed at some point in the lifecycle of the dollar,” Meyer says. “This is the first time that might not be true. When a dollar leaves me for the DeFi space, there’s never a need for a centralized ledger ever again.”

According to Gallup, one in seven Americans reported owning cryptocurrency in 2025. For St. Cloud Financial specifically, Meyer says 16% to 25% of its members either already have or are showing interest in digital assets.

“Relevancy always equals ROI,” he says. “I’m more interested in plugging the hole in the bottom of the income boat than I am worrying about future dollars.”

Education Before Execution

Before building anything, St. Cloud focused on understanding the space.

The CEO says it’s difficult to find education materials, so the credit union helped foster the Minnesota Crypto Council, a nonprofit focused on education for members, staff, and the broader community. For four years, the organization has hosted quarterly sessions, developed training materials, and brought in subject matter experts.

That education-first approach proved critical not just for adoption but also for addressing skepticism.

“When you launch something like this, you have to speak to the 50% of your membership that doesn’t want it,” Meyer says. “This is optional. We’re not forcing anything.”

Industry peers might be even harder to convince. A fall 2025 report from American Banker found the majority of the banks, credit unions, and payments companies it surveyed remain in the discussions and learning phase. The uncertainty around regulations has slowed adoption, and one of the most common arguments against digital assets is its association with volatility and fraud.

Meyer flips that framing.

“What risk have I actually taken?” he asks. “Other than human capacity and time spent, what risk have I taken?”

In his view, the greater risk lies in waiting.

“I actually think people who say, ‘I’ll get to this in five years,’ are taking the risky position,” he says.

What Came First — The Vault Or The Coin?

Although much of the industry conversation has centered on stablecoins, St. Cloud Financial took a different path with the launch of its CU-Digital Asset Vault in March. Initially envisioned as a digital version of a safe deposit box, it quickly evolved into foundational, core-integrated infrastructure. Rather than building a single product, the cooperative deployed a core-integrated digital asset framework developed by DaLand CUSO – Coin-2-Core – capable of operating across multiple financial rails, from traditional payment networks to blockchain-based systems.

“The vault acts as a vault, but really it’s a switch,” Meyer says. “It turns my core into the wallet. It turns my core into the node. It allows me to plug into any DLT [distributed ledger technology] money network.”

At a structural level, the credit union designed the vault around member ownership, employing a self-custody model where members retain control of their digital assets while the credit union facilitates storage and movement. This is in line with the current regulatory environment, where full custody authority remains an area of ongoing clarification. Rather than push ahead in a gray area, Meyer says St. Cloud Financial has spent years engaging regulators at both the federal and state levels, including ongoing dialogue with the NCUA and the Minnesota Department of Commerce. In the meantime, the vault serves as both a practical member tool and a strategic bridge, connecting digital assets back to the cooperative’s core system without overstepping regulatory boundaries.

With the infrastructure in place, launching a proprietary stablecoin became possible. Although that was not originally a main objective of the strategy, a use case convinced the credit union to proceed. Two national food co-ops approached St. Cloud Financial looking for a settlement solution aligned with cooperative principles.

“We offered them USDC,” Meyer says. “They said, ‘We’re a cooperative, you’re a cooperative. We want a cooperative stablecoin.’”

Thus, St. Cloud Financial introduced the Cloud Dollar ($CLDUSD) in late 2025, making it the nation’s first credit union-issued stablecoin.

Still, Meyer cautions against overemphasizing this aspect of the technology.

“In five years, we’ll look back and say that was a small sliver of what we were actually talking about,” he says.

Don’t Stop Here. Stablecoins and digital assets have moved beyond “wait and see” into active development. For a look at both the risks and the opportunities in this next phase of financial services, read “What Should Credit Unions Know About Stablecoins?” only on CreditUnions.com.

Slow Rollout, Strong Signals

St. Cloud Financial has taken a measured approach to rollout.

Following an NCUA audit in late 2025, the credit union launched a friends-and-family pilot in December and expanded to full membership in March. Today, the credit union holds approximately 15 Bitcoin in its system and between 50 and 75 vaults in progress.

So far the most notable insight isn’t volume, Mayer says, but member behavior, especially among younger demographics.

“When they open a vault, they bring everything with them,” he says, indicating it’s been a way to deepen relationships and increase products per member. “We’ve been told, ‘Finally someone is listening to our generation and what we believe our wealth will be.’”

Consumers are already in the cryptocurrency space, and Meyer urges industry peers not to outsource those members.

“You worked hard for those relationships,” he says. “You cannot continue to give your relationships away to third parties.”

An Uncertain Timeline

Crypto is only the beginning for St. Cloud Financial. The same infrastructure that supports digital assets today could eventually handle tokenized financial instruments, identities, and other forms of value.

“This is going to be bigger than a product,” Meyer says. “It’s going to be bigger than one innovation.”

The CEO expects the traditional finance and digital asset ecosystems will coexist and, ultimately, St. Cloud’s strategy is less about predicting the future and more about preparing for it.

“If this takes another seven to 10 years, I’m okay with that,” Meyer says. “If this happens tomorrow, I’m okay with that.”

For credit unions, the question isn’t whether to launch a stablecoin or offer crypto trading. According to Meyer, it’s whether they will have a role in a financial system where money can move, store, and grow entirely outside of them.

“Our only play is to establish ourselves as the access point, the aggregator point, and the trusted advisor point,” he says.

The post A Credit Union Journey Into Cryptocurrency And Stablecoins appeared first on CreditUnions.com.