By Stacy Augustine
When credit unions are considering CDFI certification, we frequently hear a variation of this question: how will leaning into community impact affect financial strength?
Filene’s latest report, “Amplifying Your Credit Union’s Mission: Financial and Community Impacts of Being a CDFI,” answers that with solid data. It finds that CDFI-certified credit unions outperform non-certified peers on nearly every key metric—without a corresponding rise in delinquencies or charge-offs.
What does “outperform” look like in practice? Filene’s model shows higher asset growth, member growth, loan growth, loans outstanding, loan-to-asset ratio, interest income on loans, net worth, ROA, and ROE for CDFIs. Member growth rates were almost double those of non-certified peers, and the dollar amount of loans granted increased by nearly 50%.
And interestingly, the analysis did not find increased delinquencies or net charge-offs among CDFI credit unions, dispelling the myth that providing deeper service to financially stressed households automatically raises risk.
Then vs. Now: What’s Changed Since 2015
In the 2015 predecessor to this report, Filene painted a more mixed picture: on average, CDFI credit unions trailed U.S. peers on profitability (about 15 bps lower ROA), even as “Stars”—those treating CDFI as an enterprise strategy—outperformed “Laggards.”
The new study tells a different story. Using a broader dataset and tighter controls, Filene finds that CDFI certification now correlates with stronger performance across growth, earnings, and capital, without higher delinquencies or charge-offs.
In other words, the field has shifted from pockets of excellence to a more consistent pattern of strength.
The strength of these findings rests on rigorous methods. Filene analyzed NCUA Call Report data from approximately 4,730 credit unions over 2000–2023, controlling for asset size, staffing, membership, and low-income designation to isolate the certification effect.
In other words, it’s a comprehensive look across cycles, membership trends, and changing operating conditions. This is valuable data for credit union leaders, policymakers, and industry advocates.
A Growing Field and Maturing Strategies
Context matters. Since Filene’s last CDFI study, the number of certified credit unions has climbed from roughly 241in 2013–2014 to 491 at the end of 2024. And since the CDFI Fund’s inception in 1994, it has awarded more than $8 billion to mission-driven lenders. As the field matured, so did the strategies, partners, and tools that help credit unions design, apply for, and report on awards. It’s not just that more institutions wear the CDFI badge; more have built the muscle to deploy it effectively.
What changed? Many credit unions moved their CDFI work from the margins to the middle of their business model. We see more organizations aligning product design with community needs, pairing loans with counseling, deepening partnerships that create borrower pipelines, and treating grant execution and reporting as core competencies. Community development isn’t a “side of the desk” function; it’s built into the credit union’s operating rhythm.
The Takeaway
The takeaway: when a credit union embraces a CDFI business model, the numbers follow.
Filene highlights the building blocks of a durable CDFI model: align your mission with community development, tailor products and services to member needs, build partnerships that expand access, and surround lending with education and support.
In practical terms, that means going beyond rate sheets and underwriting matrices to design offerings around how members actually live, earn, commute, and care for their families. It also means measuring what matters: tracking not just volume and yield, but the progress members make toward financial stability.
The Organizational Dividend
There’s an organizational dividend, too. When credit unions commit to a focused set of social-impact pillars, CDFI strategy becomes a rallying point for the entire enterprise—clarifying priorities across departments and increasing employee engagement. Teams are more motivated when they see the direct link between their work and members’ progress. That culture launches a virtuous cycle: policies, pricing, risk management, and outreach begin to reinforce one another.
Putting It Into Action
Whether you’re weighing certification or wondering how to get more from it, here’s how I’d translate Filene’s findings into action:
- Make being a CDFI an enterprise strategy. Start with a clear articulation of the community problems you will solve and the members you will serve. That clarity keeps your balance sheet and brand aligned.
- Design products to fit lives, not just risk tiers. The most effective programs in Filene’s report adapt otherwise commoditized products to expand access—then surround them with counseling and partnerships that help members succeed.
- Plan to win the grants—and to deliver on them. Awards can be a catalyst, but they also come with reporting and performance requirements that demand discipline. Treat the award plan like a multi-year business plan for safe, profitable loan growth.
The Heart of This Work
I often say that CDFIs are credit unions embracing their cooperative roots and doing what we were built to do: serve everyday working people. You’ll find me quoted on that in the report because it captures the heart of this work.
The good news is that when we live that purpose intentionally, the numbers follow. Mission and margin aren’t in tension; they reinforce each other when you design them to. Filene’s work is a gift to the movement: rigorous proof that deep inclusion and strong performance can scale together.
Now it’s on all of us to turn the findings into results that change lives.
Stacy Augustine is president of CU Strategic Planning.
