Top-Level Takeaways

• A new approach to mortgages at 7 17 Credit Union includes no fees, low rates, and refinance incentives.
• Data and regional challenges shaped the strategy, with programs addressing specific community needs rather than broad national trends.
• Partnering with employers and targeting underserved urban markets helped 7 17 make the connection between stable homeownership, employee wellbeing, and long-term community growth.

The national conversation about housing affordability tends to focus on inventory, home prices, and mortgage rates. But for many would‑be buyers, the upfront costs that make a mortgage possible in the first place present an insurmountable hurdle to homeownership.

At 7 17 Credit Union ($2B, Warren, OH), addressing affordability started with questioning whether many traditional mortgage costs needed to exist at all. In response to feedback from some of its workplace partners, the cooperative launched a series of mortgage-related initiatives in 2025 aimed at supporting broader regional housing needs, including zero-fee home financing and refinancing and rate reductions. But rather than simply introducing a competitive cost structure, the new approach underscores how a credit union approach can look fundamentally different.

“It’s not enough just to talk about the difference between credit unions and banks,” says John Demmler, CEO of 7 17 Credit Union. “We wanted to create a suite of products that give clear examples of the differences. We started with the idea of housing affordability because that was a major issue in our region.”

A Mismatch In The Market

The need for more affordable housing emerged against a backdrop of broader economic pressures shaping Northeast Ohio. Demmler says household incomes in many communities the credit union serves lag state averages, leaving families particularly vulnerable to inflation, higher energy costs, and other rising expenses. At the same time, many local housing markets face aging inventory and limited availability.

The Eastgate Council of Regional Governments commissioned a housing study conducted by the Greater Ohio Policy Center to better understand housing needs in Mahoning and Trumbull counties. The study identified two significant trends.

First, demand was concentrated around one- and two-bedroom units, whereas excess capacity existed in four-bedroom homes, reflecting a shift in demographics toward smaller household sizes. Researchers also identified substantial need for housing in the $500 to $1,000 per month range, aligning with what households earning approximately $25,000 to $35,000 annually could reasonably afford.

The findings revealed another notable tension — families were increasingly seeking homes in the $300,000 to $500,000 range with access to safe neighborhoods, quality schools, and newer housing stock.

“There’s a need for attainable housing, but there’s also a need for quality housing,” Demmler says.

The housing study reinforced what 7 17 had already discovered through conversations with employers and community partners and hinted that its previous investments might not go as far as planned.

“We had made a $100 million commitment to affordable housing starting around November 2024,” Demmler says. “We thought that commitment would carry through 2030. I think we’ll blow through that $100 million several years before 2030.”

“Your Keys, No Fees”

The need for affordable housing isn’t just a family issue; it shows up in the workplace, too. Demmler says employers are starting to connect a stable home life with workforce performance, turning housing affordability into an employee financial wellbeing issue.

“Owners want employees with a financially secure home life,” he says. “When they’re not worried and stressed, they’re more productive at work.”

Armed with this understanding, the credit union considered how it could meaningfully address regional housing needs, household budgets, and homeownership barriers. The answer was a mortgage with no out-of-pocket closing costs, available exclusively to workplace partner employees.

7 17 launched “Your Keys, No Fees,” roughly a year ago. Although eliminating many traditional mortgage fees sounds counterintuitive to ensuring sustainability and long-term financial health, the math tells a different story.

“We earn all of the fees back in about three months through normal interest income,” he says. “If we’re holding a mortgage for 10 years, it’s not too much to ask to give up three months of interest income to break down barriers to homeownership.”

The CEO takes the argument a step further.

“I would challenge every bank, every mortgage company, every financial institution to realize they don’t need to charge these fees either,” Demmler says. “If anyone is getting a mortgage, they should demand they pay zero closing costs, because it’s not needed.”

A Broader Play On Affordability

Interest spread quickly, bringing new energy to the cooperative’s SEG program and allowing it to recruit larger workplace partners.

“Our average workplace partner has maybe 75 employees,” Demmler says. “But recently we’ve brought on some really large ones: Akron Children’s Hospital, Stark State College, Youngstown State University, and Kent State University.”

And, today, 7 17 has expanded its strategy beyond eliminating fees.

“In Northeast Ohio, a lot of urban markets were supported by industries that don’t exist today,” Demmler says. “These cities have been hollowed out over several decades, but we know cities represent the lifeblood of the region. We wanted to do something to strengthen our cities.”

The cooperative expanded its housing initiative, offering a 1% reduction on qualifying mortgage rates to borrowers purchasing homes within the city limits of Warren, Youngstown, Canton, or Akron.

It also expanded into refis to give families more room in their household budgets.

“Mortgage rates went from below 3% to closer to 7%,” Demmler says. “If you bought anytime from 2022 to today, that’s a more challenging monthly payment.”

Homeowners refinancing with 7 17 today can take advantage of a 1% reduction from their existing mortgage rate, down to a floor of 4.99%.

“And we’re not going to charge you a nickel to do it,” the CEO adds.

For Demmler, these offerings are less about growing mortgage volume and more about changing expectations.

“If we can make every bank in Ohio stop charging fees to get a mortgage, then that would be an incredible accomplishment,” he says.

A Holistic Approach

Housing affordability served as 7 17’s starting point, but Demmler says the credit union never intended the strategy to operate in isolation. Instead, it became part of a broader “Ohio Strong” campaign, which includes products that help members navigate household pressures, from auto expenses to savings behaviors. The common thread is less about individual products and more about designing solutions around the financial realities members face every day.

“It’s not enough to have one gimmick product out there,” Demmler says. “You have to look at the whole need of your membership and make sure what you’re offering is relevant and meaningful.”

That philosophy influences how the cooperative thinks about success. Traditional metrics such as loan growth and membership expansion still matter, but Demmler says the credit union’s larger objective is to create products that change the conversation about what financial institutions should provide.

“When the products and services that we put out fundamentally change the expectations of what people want out of banking and moves the needle for other financial institutions to offer better products, then we know we’ve had meaningful change,” the CEO says.

Ultimately, 7 17 built this mortgage initiative to solve a public need first and allow business growth to follow. For credit unions considering similar efforts, Demmler suggests starting somewhere other than product design.

“Seek out first the public need that you’re trying to address,” he says. “Seek that first, and all the rest is stumbled on.”

Member engagement begins with employee empowerment. When employees feel financially secure at home, they show up differently at work — and credit unions like 7 17 are building products designed around that reality. The Member Engagement & Financial Wellbeing Consortium helps credit unions activate the internal shift that turns mission-aligned strategy into measurable member outcomes. Learn more.

The post Keep The Mortgage. Ditch The Fees. appeared first on CreditUnions.com.

HELOC BALANCES AND UTILIZATION
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Home equity loans and lines of credit were key drivers of credit union growth in the first quarter of 2026, according to remarks in Callahan & Associates’ latest Trendwatch webinar, and credit unions are taking different approaches to capture that demand.

Eras And Roots

Baton Rouge Telco Federal Credit Union ($456.4M, Baton Rouge, LA) has reported a 20% lift in home equity lending in the past several years. The southern credit union offers only HELOCs and does not provide closed-end home equity lending.

Although the demand has been steady, HELOC requests have by no means exploded, says Katie Guylette, the credit union’s chief lending officer. That’s partly by design.

The credit union focuses on auto lending — indirect auto makes up the majority of its loan portfolio — and promotes its home options twice a year. It runs a purchase campaign in the first half of the year and a HELOC campaign in the second half.

Telco used to combine its purchase and HELOC campaigns but found those member segments’ needs were different enough to require independent, tailored outreach.

“We’ve developed a strategy of trying to get much more specific and targeted with our messaging,” says Kristin Romero, chief experience officer.

The credit union is still crafting this year’s HELOC campaign, but it typically focuses on digital channels to raise awareness with existing members. It’s also got a wildly successful past campaign to draw on.

In 2024, Telco leaned into the cultural phenomenon of Taylor Swift’s Eras Tour to promote HELOC opportunities. That campaign proved to be the credit union’s most successful ever, Romero says, crediting a mix of smart timing and a more playful tone.

The credit union’s 2026 mortgage campaign highlights strong roots and smart financing, and the HELOC campaign is likely to take its cues from that, possibly with a “grow your roots” theme, Romero says.

“You’ve planted roots, now leverage that so you can achieve your dreams, that kind of thing,” she says.

Regardless of the campaign, one of Telco’s biggest lessons has simply been to offer a straight-forward product and communicate the benefits to members.

“Because we’re a bit smaller, members can feel like they’re getting that personal service and handholding with something that can be stressful,” Romero says.

Same Product, New Messaging

Home equity lending at TAPCO Credit Union ($719.3M, Fircrest, WA) has increased in the past 18 months, with demand shifting from open-ended HELOCs to termed home equity loans.

The credit union processes roughly an equal number of both, but HELOC borrowers typically access only $300,000 or so of available equity, compared with roughly $3 million issued at once in closed-end home equity loans, says Jeremy Mandery, chief retail and lending officer.

In the past, edgy campaigns like its 2022 “Big Deck Envy” helped TAPCO attract local attention, borrower business, and industry recognition, but as the economy has shifted and consumer sentiment has fallen, the credit union has altered its tone to focus more on community.

TAPCO is delivering much of its latest messaging through online banking and other digital channels, which tend to provide more consistent exposure to members than a one-off promotional email, says Jacob Rose, director of marketing.

The lending team has also worked with title companies and other vendors to identify direct mail prospects who have equity in their homes and live in the vicinity of a TAPCO branch. The credit union then sends a postcard with a scannable QR code that provides information.

The toned-down messaging and focus on community is also the result of a stronger market presence. Back when it launched Big Deck, it was trying to attract attention.

“People see us now,” Rose says. “The community sees us. We don’t need to be as splashy with some of that marketing.”

Mandery also credits CEO Justin Martin with shifting TAPCO’s overall approach.

“Over the past four years, we’ve had 25% asset growth and we’ve gotten back to the roots of what credit unions do,” Mandery says. “We are certainly outspent by some credit unions and regional banks in our area, but when it comes to boots on the ground, we’re there. That puts us in the room for opportunities we wouldn’t otherwise get.”

Visions Of Success

Across the country, demand for home equity products at Visions Federal Credit Union ($5.3B, Endwell, NY) has been high for the past few years but was flat in the early months of 2026. According to the credit union, seasonality is at play, and it is taking steps to boost interest.

“The demand is out there, but it’s been a sleepy start to the year,” says Mandy DeHate, chief marketing officer. “We’re starting to get more to our stride in terms of applications.”

Visions offers closed-end home equity loans and open-ended lines of credit, although DeHate says the latter tends to be more popular. To promote its products, the northeastern credit union has embraced digital marketing in a year filled with major sporting events. Over the top — or OTT, for short — ads served direct to audiences over the internet are helping the credit union capture eyeballs during high-profile sporting events like the Super Bowl, March Madness, the Winter Olympics, and this year’s FIFA World Cup. That effort works alongside Google Performance Max campaigns to increase Visions visibility across the broader Google network.

“We’ll get [consumers] while they’re searching, we’ll get them while they’re watching YouTube, we’ll get them as they’re going about their day,” DeHate says. “Those multiple touchpoints drive home the fact we’ve got this product, and I think it leads to faster decision-making and stronger credibility of our brand.”

That same approach extends to audience targeting. The credit union is running Spanish-language digital campaigns tailored to its Hispanic communities and ran a successful geofencing campaign in 2025 to target members visiting retailers like Lowe’s and Home Depot located near one of Visions’ 61 branches. That campaign drove branch traffic, DeHate says, but it tracked visits rather than whether members ultimately opened a HELOC or completed another transaction.

Ultimately, although these efforts can attract new members, most HELOC applications at Visions still come from existing members — underscoring the importance of staying visible across channels and meeting members where they already are.

See how your home lending performance compares. Demand for home equity products is rising industrywide, but how does your credit union stack up against true peers? Peer Suite gives leaders instant access to 20 years of industry data, peer benchmarks, and goal-aligned performance analysis. Start your free 30-day trial of Peer Suite.

The post 3 Ways To Market For HELOC Success appeared first on CreditUnions.com.

Homeownership is a key component of the American dream; it’s also part of the credit union dream. If a member holds a mortgage or home equity loan with the credit union, odds are they’ve got other products there as well. It’s one step closer to being their primary financial institution. Although not all credit unions offer mortgages, home loans of all kinds remain a notable driver of industry growth.

This week is all mortgages on CreditUnions.com. In the days to come, keep your eyes peeled for:

• Three ways credit union marketers at TAPCO Credit Union, Baton Rouge Telco FCU, and Visions FCU are making the most of growth in the home equity market. Read more in “3 Ways To Market For HELOC Success.”
• How a rethink of closing costs, rate relief, and employer partnerships helped 7 17 Credit Union build an affordable housing mortgage program that works. Read more in “Keep The Mortgage. Ditch The Fees.”
• Two takes from TAPCO Credit Union and Appalachian Community FCU on how the two cooperatives are looking to manufactured housing to bring affordable housing to younger borrowers, rural borrowers, low-income communities, and more. Read more in “Small House, Big Opportunity.”
• New insights into the industry’s mortgage performance as of the first quarter of 2026. Read more in “Mortgage Lending Is Back, But It Looks Different.”
• Plus, exclusive client content that digs into the nuanced mortgage opportunity taking shape around first-time buyers, shifting rate dynamics, and emerging risk signals. Read more in “Mortgage Lending Rebounds With New Borrowers And New Risks.”

Now it’s your turn. What’s driving mortgage growth for your credit union? Or, if you’re pulling back, why? We want to hear how your shop is approaching the home loan market. Drop us a line, and we might feature your story on CreditUnions.com.

The post Home Is Where The Heart (And More) Is 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.

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.

This webinar will share ways that leading institutions use analytics to evaluate, expand, and optimize their networks, while simultaneously ensuring their brand comes to life to deepen relationships and stand out from competitors. Through real-world examples, attendees will gain actionable insights on balancing efficiency with experience, aligning physical presence with evolving expectations, and turning branch environments into high-impact drivers of brand engagement.

Key learnings:

• Understand what data is critical to making and measuring CX strategies
• Learn to evaluate branch network performance and prioritize investment, consolidation, and expansion opportunities
• Discover critical ways to connect brand strategy to physical environments
• Explore how to balance high-tech efficiency with high-touch engagement
• See how three leading credit unions have implemented brand strategies that extend to their in-branch experiences

Download the slide deck here.

The post From Footprint to Future: How Successful Credit Unions Drive Growth with a Brand-to-Branch Strategy 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.

According to the LinkedIn Grad’s Guide 2026, hiring for entry-level roles is down roughly 7% year-over-year and remains below pre-pandemic levels. The Federal Reserve Bank of New York reports the unemployment rate rose to 5.8% at the end of 2025 for recent college graduates aged 22-27. At the same time, the National Association of Colleges & Employers (NACE) projects employers will hire just 1.6% more new grads compared to 2025.

Nearly 70% of employers claim to take a skills-based approach to hiring, looking for a combination of internships, volunteer projects, freelance work, and personal projects that demonstrate applied skills and the ability to turn classroom learning into real-world experience. On the other hand, GPA is losing importance. Since 2019, the percentage of employers who screen graduate GPAs has fallen from 73% to 42%.

And when it comes to artificial intelligence, new grads face a quandary. Employers have expectations for how their staff uses AI but are still figuring out the specifics, according to Christine Cruzvergara, chief education strategy officer at the job and internship platform Handshake. Still, a full 59% of respondents to a NACE research report claim they are not going to or are unsure if they will augment entry-level jobs with AI, whereas 25% are actively discussing their AI plans for entry-level roles. The same data finds approximately 13% of entry-level jobs require AI skills; 11% of those jobs include AI in their descriptions.

PROJECTED CHANGE IN NUMBER OF ENTRY-LEVEL COLLEGE HIRES
FOR U.S. EMPLOYERS, COLLEGE GRADUATES | DATA AS OF NOVEMBER 2025
SOURCE: National Association of Colleges & Employers Job Outlook 2026 Survey

To find a job, new graduates are using a combination of search methods. According to Metaintro, professional networking platforms such as LinkedIn remain the most widely used tools, whereas job seekers often drop campus-specific recruiting platforms after leaving school. Major job aggregators such as Indeed are useful for broad awareness and alerts for specific roles and locations. Metaintro claims industry-specific job boards and company career pages are underrated and can bear a disproportionately greater amount of fruit when compared to major aggregators. Pair all of the above with active, relationship-based networking and new grads can gain a leg up on their competition.

Strategic Insights

• The top five industries for projected hiring growth are: miscellaneous professional services; engineering services; construction; finance, insurance, and real estate; and management consulting. Healthcare, skilled trades, cybersecurity, and business operations are also active in hiring new grads.
• On the flip side, the 14% of employers who plan to decrease hiring in 2026 tend to represent: pharmaceutical manufacturing; transportation; wholesale trade; food and beverage manufacturing; and miscellaneous manufacturing. Hiring for the general tech industry also remains uneven.
• The share of fully hybrid jobs has declined in the past year, falling from 47% to 42%; the share of fully on-site jobs has risen from 43% to 48%. Fully remote jobs have held steady, comprising 10% of the market. Half of all entry-level positions require an in-person presence, whereas only 6% are fully remote.

How Can Credit Unions Support Entry-Level Job Seekers?

• Students across the country are moving into credit union internships. Such opportunities support the future of the industry while providing practical, real-world work experience for future job seekers. Read more in “From Internship To Credit Union Career.”
• Holy Rosary Credit Union has embedded itself into a local high school’s career and technical education program, offering scholarships, internships, and courses eligible for college credit. Read more in “Inside An In-School Model That Links Classrooms With Careers.”
• California Credit Union offers a summer internship program, and alumni have left their mark on the credit union’s operations. Read more in “Interns Inspire Innovation At California Credit Union.”

The post New Graduates Face A Cautious Job-Hiring Landscape 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.