Overview of Central Minnesota Credit Union

Central Minnesota Credit Union officially got its credit union charter in the year 1939. The credit union falls under the category: state charter. In terms of its lending activity, the credit union is mainly engaged in providing mortgages and lines of credit. These loans represent 62% of its total lending. Central Minnesota Credit Union’s total assets are larger than 94% of credit unions in the United States. The National Credit Union Administration (NCUA) insures deposits at credit unions in addition to regulating and supervising them. The NCUA was formed by the U.S. Congress in 1970. The company has a total of 22 branches and employs a total of 356 employees.

Discussion of the Credit Union’s Operations

The credit union currently has total assets of $1,586 million, total deposits of $1,361 million and net loans outstanding of $1,147 million. On average its members had a total of $18,444 deposited with the credit union – this is a helpful metric to monitor as it provides us with an idea of the level of engagement of the credit union’s membership base. The average credit union in Central Minnesota Credit Union’s peer set has a loan to deposit ratio of approximately 74%. In comparison, Central Minnesota Credit Union has a loan to deposit ratio of 84% which is clearly higher than the peer set. A lower ratio is generally better as it indicates that the lending activities of a credit union are more comfortably covered by its deposit base. Deposits are often the most cost effective source of funding for banks and credit unions. Moving on to the credit union’s loan portfolio, it mainly consists of the following: mortgages and lines of credit make up 62% of the portfolio and there is a total of $712 million outstanding and auto loans comprises 9% of the loan book and there is a total of $109 million outstanding.

Contact and Other Helpful Information

  • Main Office Address: 20 4Th Ave Se, Melrose, MN 56352
  • Website: http://www.mycmcu.org
  • Phone: (320) 256-3669
  • Charter Number: 68604
  • Charter Year: 1939
  • Employees: 356
  • Routing Number: 291974204
  • Membership: On average, credit unions in Minnesota each have 21,297 members while across the United States the equivalent figure is 25,779. By comparison, Central Minnesota Credit Union has total members of 73,763 which is significantly larger than the average credit union in the state. Over the past two years, the credit union’s total membership has increased by 6%.

Central Minnesota Credit Union: Financial Overview

central minnesota credit union-balance-sheet-metrics

Detailed above is a chart showing the progression of four important balance sheet items over the past year for Central Minnesota Credit Union. Assets and total loans for the credit union have grown by 14.8% and grown by 8.2%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has increased by 26.1%. Lastly, the credit union’s deposits have grown by 34.8%. ‘Net worth’ is a good way to assess the long-term performance of a credit union as it represents the accumulated value of the entity over time. Importantly this is value that accrues to the credit union’s owners: its members. Central Minnesota Credit Union has a total net worth of $213 million. This implies that the credit union has a net worth per member of $2,887 which is greater than the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

central minnesota credit union-selected-performance-metrics

The chart above compares Central Minnesota Credit Union’s performance on three metrics to credit unions in its peer group and also shows the credit union’s performance on each metric in the prior year. These are some of the important measures for a credit union’s performance that we look at. Starting with the company’s return on assets, on this metric Central Minnesota Credit Union is well above the average credit union in its peer set and over the past year ROA has improved substantially with a total change of 0.48%. Return on assets tells us how productive a company is being with its asset base. Moving on to the credit union’s delinquency rate, which tells us how much of a credit union’s loan book is delinquent, the credit union is below its peer group on this metric and compared with the prior year it has improved substantially. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. Finally, the net worth ratio for the credit union is 13.4% which is well above its peer group average of 9.8%. This metric has declined on a year over year basis and stood at 13.9% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.


In conclusion, when we look at all the various factors and data we give Central Minnesota Credit Union a 4.0 out of 5.0 rating, which we consider to be exceptional. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.