MDI Credit Unions Are Healthy, NCUA Says

The NCUA has submitted its annual report on Minority Depository Institutions to Congress — Learn what was revealed.

David Baumann


Jul 6



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David Baumann

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David Baumann

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Agency submits annual report to Congress on Minority Depository Institutions.

MDI credit unions thrived in 2022, but the NCUA will continue its efforts to support the unique character of those financial institutions, agency officials said Wednesday.

“This report provides a wealth of details, but it’s clear that, given the great majority of MDIs are small credit unions, they punched above their weight,” NCUA Chairman Todd Harper said, as the agency sent its annual MDI report to Congress.

Main Takeaways

According to the NCUA, there were 503 MDI credit unions at the end of 2022, a slight decrease from 2021, when there were 509. Harper said the decrease was largely due to mergers and credit unions no longer self-designating as MDIs. Over the course of 2022, 19 credit unions became newly designated, the agency reported.

In 2022, MDI credit unions served more than five million members, up from 4.5 million in 2021—a 14.1% increase. Overall, federally insured credit unions experienced a 4.4% increase in members in 2022.

What They’re Saying

Harper said that the importance of MDI credit unions has taken on new significance as financial regulators struggle with the impact of climate change on the nation’s financial system.

“Just as MDIs were essential in assisting their members and communities during the COVID pandemic, they must be prepared to fill the same role as climate change advances,” he stated, noting that the NCUA’s chief economist recently found that two-thirds of MDI assets are in communities that will be particularly vulnerable to climate change.

What Else Is in the Report?

The NCUA additionally reported that:

–MDIs usually are small institutions. At the end of 2022, the average MDI credit union held $128.6 million in assets, compared with average assets of $455.4 million across all federally insured credit unions.

–Of the 503 MDI credit unions, 411 also were classified as low-income credit unions and 104 were certified CDFIs.

What Comes Next?

Looking ahead, the NCUA said it plans to increase the number of staff hours allocated to Small Credit Union and MDI Support from 1,534 for each NCUA region in 2022 to 5,500 hours across the three regions.

The agency also plans to adjust its examination processes to recognize the distinctive business model of MDI credit unions, while at the same time providing those institutions with metrics to benchmark their work against true peers.

Additionally, the NCUA will offer grants to MDIs that were not previously eligible for CDRLF grants after Congress added the MDI designation as a qualifying factor.


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