✦ Missed CU Wrapped 2025? Read the full Year in Review →
✦ Q1 2026 · First Look

National Credit Union Analysis

National Credit Union Industry

2026-Q1 4336 Credit Unions Skip to the TL;DR

Member Growth Stays Negative at the Average Credit Union — Every Tier Above $500M Keeps Growing

The national credit union industry entered 2026-Q1 with member growth at -0.65% at the average institution — negative for a fourth straight quarter, and sharply decelerated from +1.96% a year ago. The contraction is concentrated below $500M in assets; every larger tier kept growing. ROA decreased to 0.67% from 0.73% in 2025-Q4, though it is essentially flat year over year (0.66% in 2025-Q1). NIM held steady at 3.70%, up 7 bps year-over-year, providing a cushion. Asset growth decelerated to 2.64% from 3.11% last quarter. Delinquency improved to 0.78% from 0.90% in 2025-Q4. With membership contracting at the average institution, credit unions must prioritize deepening existing relationships to sustain revenue.

Small
< $100M
2508
credit unions
-1.5% members YoY
Mid-Small
$100M–$500M
1070
credit unions
-0.1% members YoY
Community
$500M–$1B
284
credit unions
+0.6% members YoY
Mid-Market
$1B–$5B
384
credit unions
+2.1% members YoY
Large
$5B–$10B
66
credit unions
+2.7% members YoY
Titans
> $10B
24
credit unions
+3.5% members YoY

Tier Scorecard

2026-Q1
Tier Asset Range CUs ROA NIM Member Growth YoY Asset Growth YoY Delinquency
Small < $100M 2508 0.63% 3.83% -1.5% 1.2% 0.80%
Mid-Small $100M–$500M 1070 0.74% 3.62% -0.1% 4.0% 0.66%
Community $500M–$1B 284 0.70% 3.45% +0.6% 4.5% 0.65%
Mid-Market $1B–$5B 384 0.72% 3.34% +2.1% 5.0% 0.67%
Large $5B–$10B 66 0.90% 3.15% +2.7% 6.2% 0.63%
Titans > $10B 24 0.90% 3.12% +3.5% 6.4% 0.91%

Tier Comparison

Return on Assets by Tier — 2026-Q1

Large credit unions lead profitability at 0.90% ROA; the Small tier trails at 0.63%.

Member Growth (YoY) by Tier — 2026-Q1

Member growth splits cleanly at $500M: Small (-1.5%) and Mid-Small (-0.1%) are shrinking while every larger tier grows, topping out at +3.5% for Titans.

Net Interest Margin by Tier — 2026-Q1

NIM remains highest among Small credit unions (3.83%) and lowest among Titans (3.12%), a reminder that scale advantages do not automatically translate into wider spreads.

Key Insights

Year-over-Year Changes

Return on Assets (ROA) (Absolute)
2025-Q1 2026-Q1
0.66% → 0.67% (+0.01%)
First Mortgage Concentration (%) (Absolute)
2025-Q1 2026-Q1
21.58% → 22.15% (+0.57%)
Net Interest Margin (NIM) (Absolute)
2025-Q1 2026-Q1
3.63% → 3.70% (+0.07%)
Asset Growth (YoY) (Absolute)
2025-Q1 2026-Q1
2.57% → 2.64% (+0.07%)
Share Certificate Concentration (%) (Absolute)
2025-Q1 2026-Q1
18.79% → 19.80% (+1.01%)

Quarter-over-Quarter Changes

Deposit Growth (YoY) (Absolute)
2025-Q4 2026-Q1
2.57% → 2.16% (-0.41%)
Return on Assets (ROA) (Absolute)
2025-Q4 2026-Q1
0.73% → 0.67% (-0.06%)
First Mortgage Concentration (%) (Absolute)
2025-Q4 2026-Q1
21.97% → 22.15% (+0.17%)
Net Interest Margin (NIM) (Absolute)
2025-Q4 2026-Q1
3.72% → 3.70% (-0.02%)
Asset Growth (YoY) (Absolute)
2025-Q4 2026-Q1
3.11% → 2.64% (-0.47%)

Key Metrics

Return on Assets

0.67%

YoY
0 basis points below national
Profitability

Net Interest Margin

3.70%

YoY
0 basis points below national
Profitability

Asset Growth

2.64%

YoY
Growth

Member Growth

-0.65%

Growth

Delinquency Rate

0.78%

YoY
Risk

Net Worth Ratio

13.61%

Risk

AMR Growth

2.41%

Engagement

Deposit Growth

2.16%

YoY
Growth

Loan Growth

0.31%

YoY
Growth

Member Engagement

Member Growth (YoY %)

Member engagement deteriorated on a year-over-year basis, with member growth at the average institution at -0.65% in 2026-Q1 — sharply decelerated from +1.96% in 2025-Q1, a swing of -2.61 percentage points. Quarter-over-quarter, the rate was essentially stable, improving just 0.05 pp from -0.69% in 2025-Q4. The persistent negative membership trend suggests acquisition headwinds are structural rather than seasonal, placing greater urgency on deepening wallet share among existing members. The divide is structural: Small (under $100M) and Mid-Small ($100M–$500M) credit unions posted member growth of -1.5% and -0.1% respectively, while every tier above $500M grew — from +0.6% (Community) to +3.5% (Titans).

Profitability

Return on Assets (%)

Net Interest Margin (%)

Profitability showed a mixed picture in 2026-Q1. ROA decreased to 0.67% from 0.73% in 2025-Q4, a decline of 0.06 pp quarter-over-quarter — a meaningful sequential pullback. Year-over-year, however, ROA was stable, edging up just 0.01 pp from 0.66% in 2025-Q1. NIM was stable quarter-over-quarter at 3.70%, down only 0.02 pp from 3.72% in 2025-Q4, while improving 0.07 pp from 3.63% a year ago.

Growth

Asset Growth (YoY %)

Member Growth (YoY %)

Growth momentum decelerated across all dimensions in 2026-Q1 at the average institution (NCUA's asset-weighted system totals run higher, led by the largest credit unions). Asset growth decelerated to 2.64% from 3.11% in 2025-Q4 (-0.47 pp), though it modestly accelerated from 2.57% in 2025-Q1 (+0.07 pp year-over-year). Loan growth decelerated to 0.31% from 0.52% in 2025-Q4 (-0.21 pp); year-over-year data is unavailable. Deposit growth decelerated to 2.16% from 2.57% in 2025-Q4 (-0.41 pp); year-over-year comparison is also unavailable. The industry is growing steadily at the average institution but losing sequential momentum heading into mid-2026.

Risk & Credit Quality

Delinquency Rate (%)

Net Worth Ratio (%)

The industry's risk profile improved quarter-over-quarter but warrants monitoring year-over-year. Delinquency decreased to 0.78% in 2026-Q1 from 0.90% in 2025-Q4, a meaningful improvement of 0.12 pp. Year-over-year, however, delinquency was stable, up 0.04 pp from 0.74% in 2025-Q1. Net worth decreased slightly to 13.61% from 13.68% in 2025-Q4 (-0.06 pp), yet increased 0.44 pp from 13.18% in 2025-Q1, reflecting solid capital accumulation over the past year.

Portfolio Mix

First Mortgage (%)

Indirect Auto (%)

Share Certificates (%)

Portfolio composition shifted meaningfully over the past year. First mortgage concentration increased to 22.15% in 2026-Q1 from 21.58% in 2025-Q1 (+0.57 pp YoY), and also rose 0.17 pp from 21.97% in 2025-Q4, aligning exactly with the national benchmark of 22.15%. Share certificate concentration increased sharply to 19.80% from 18.79% a year ago (+1.01 pp YoY), reflecting members' continued 'flight to safety' in higher-rate deposit products. Indirect auto concentration decreased to 7.73% from 8.03% a year ago (-0.30 pp YoY), consistent with softening auto lending demand industry-wide.

Strategic Implications

  • With member growth at -0.65% and structurally decelerating from +1.96% a year ago, credit unions must shift acquisition investment toward digital onboarding and community partnerships to reverse the membership contraction trend.
  • Sequential ROA compression of 0.06 pp from 2025-Q4 to 2026-Q1, despite stable NIM, points to rising non-interest expense pressure — cost discipline and operational efficiency initiatives should be prioritized heading into 2026-Q2.
  • The 1.01 pp year-over-year surge in certificate concentration to 19.80% signals members are locking in rates, which could compress funding flexibility if rates decline — institutions should model repricing risk scenarios now.
  • Delinquency's 0.12 pp quarter-over-quarter improvement is encouraging, but the 0.04 pp year-over-year drift upward warrants proactive loan workout programs, particularly as loan growth decelerates to just 0.31%.
  • Large and Titan tiers are outperforming on asset growth (6.23% and 6.40% respectively) versus Community CUs at 4.80%, suggesting scale advantages are widening — smaller institutions should evaluate merger or partnership strategies to compete.

How does your credit union compare?

See where you stand against 4,800+ credit unions nationwide

Free to explore · Full scorecards with a quick email sign-in (no password)

Notable Patterns

Tier Divergences

Efficiency Ratio (Annual): 7pp spread (Large at -8.9% vs Mid-Market at -2.0%)

First Mortgage Share: Tiers moving opposite directions (Community, Titans up vs Large down)

Regional Outliers

ND: Mpe is 97pp below national

GU: First Mortgage Share is 23pp above national (also 4 other states)

GU: Efficiency Ratio (Annual) is 18pp below national

Data Quality Notes

8 metric(s) had extreme values filtered using MAD-based, z-score > 5.0.

Total Delinquency Rate (60+ days) (Absolute) 209 CU(s) excluded
Raw average: 1.19% → Cleaned average: 0.78%
View excluded credit unions
Return on Assets (ROA) (Absolute) 124 CU(s) excluded
Raw average: 0.39% → Cleaned average: 0.67%
View excluded credit unions
Net Worth Ratio (Absolute) 115 CU(s) excluded
Raw average: 14.35% → Cleaned average: 13.61%
View excluded credit unions
Member Growth (YoY) (Absolute) 103 CU(s) excluded
Raw average: 10.19% → Cleaned average: -0.65%
View excluded credit unions
Asset Growth (YoY) (Absolute) 47 CU(s) excluded
Raw average: 1663.40% → Cleaned average: 2.64%
View excluded credit unions
Deposit Growth (YoY) (Absolute) 46 CU(s) excluded
Raw average: 64.06% → Cleaned average: 2.16%
View excluded credit unions
Loan Growth (YoY) (Absolute) 43 CU(s) excluded
Raw average: 1.74% → Cleaned average: 0.31%
View excluded credit unions
Net Interest Margin (NIM) (Absolute) 28 CU(s) excluded
Raw average: 3.80% → Cleaned average: 3.70%
View excluded credit unions
Back to Analysis
Link copied to clipboard!