Arizona's 33 credit unions delivered a standout Q2 2026, with ROA climbing to 0.90% — up 9 bps from Q1 2026 and 12 bps from Q2 2025 — nudging 1 bp above the national benchmark of 0.89%. Member growth accelerated to 0.79% QoQ from 0.55% in Q1 2026, extending a seven-consecutive-quarter positive streak while the national rate sits at -0.69%. Loan growth also accelerated, hitting 2.29% versus 0.22% nationally. The primary caution: net worth at 11.66% remains 2.15 pp below the national 13.81%, a capital cushion gap that warrants monitoring as asset expansion continues.
AZ Credit Unions Outpace Nation on Every Front as ROA Tops 0.90% and Member Growth Holds Seven-Quarter Streak
Key Insights
Year-over-Year Changes
First Mortgage Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
13.99% → 14.73%
(+0.74%)
Indirect Auto Concentration (%) (Absolute)
▼
2025-Q2
→
2026-Q2
23.84% → 21.27%
(-2.57%)
Share Certificate Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
16.28% → 17.91%
(+1.63%)
Asset Growth (YoY) (Absolute)
▼
2025-Q2
→
2026-Q2
4.72% → 4.51%
(-0.21%)
Loan Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
1.31% → 2.29%
(+0.98%)
Quarter-over-Quarter Changes
First Mortgage Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
14.51% → 14.73%
(+0.22%)
Indirect Auto Concentration (%) (Absolute)
▼
2026-Q1
→
2026-Q2
21.86% → 21.27%
(-0.59%)
Share Certificate Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
17.34% → 17.91%
(+0.58%)
Deposit Growth (YoY) (Absolute)
▼
2026-Q1
→
2026-Q2
3.93% → 3.60%
(-0.32%)
Asset Growth (YoY) (Absolute)
▼
2026-Q1
→
2026-Q2
5.89% → 4.51%
(-1.38%)
Key Metrics
Return on Assets
0.90%
▲ YoY1 basis points above national
Net Interest Margin
4.00%
▲ YoY25 basis points above national
Asset Growth
4.51%
▼ YoYMember Growth
0.79%
Delinquency Rate
0.72%
— YoYNet Worth Ratio
11.66%
AMR Growth
3.05%
Insufficient historical data for trend visualization
Deposit Growth
3.60%
— YoYLoan Growth
2.29%
▲ YoYMember Engagement
Member Growth (YoY %)
Member engagement strengthened in Q2 2026, with member growth accelerating to 0.79% from 0.55% in Q1 2026 — marking the seventh consecutive quarter of positive growth since 2024-Q4, when the rate last turned negative at -3.46%. Year-over-year, the rate is essentially stable, easing just 0.04 pp from 0.83% in Q2 2025. The contrast with the national benchmark of -0.69% is striking: Arizona credit unions are outpacing the industry by 1.48 percentage points, reflecting durable member acquisition momentum in a market where peers are losing ground.
Profitability
Return on Assets (%)
Net Interest Margin (%)
Profitability improved meaningfully on both timeframes. ROA rose to 0.90% in Q2 2026, up 9 bps from 0.81% in Q1 2026 and up 12 bps from 0.78% in Q2 2025, placing Arizona credit unions 1 bp above the national benchmark of 0.89%. NIM also expanded, reaching 4.00% — up 6 bps from 3.94% in Q1 2026 and up 6 bps from 3.93% in Q2 2025 — and sits 25 bps above the national average of 3.74%. The combination of rising NIM and improving ROA signals broadening earnings quality across the cohort.
Growth
Asset Growth (YoY %)
Member Growth (YoY %)
Growth dynamics were mixed in Q2 2026. Asset growth decelerated to 4.51% from 5.89% in Q1 2026 and from 4.72% in Q2 2025, yet remains positive for nine consecutive quarters and runs 1.88 pp above the national rate of 2.63%. Loan growth, by contrast, accelerated to 2.29% from 2.14% in Q1 2026 and from 1.31% in Q2 2025 — its fifth consecutive positive quarter — outpacing the national rate of 0.22% by 2.07 pp. Deposit growth decelerated modestly to 3.60% from 3.93% in Q1 2026, though it still exceeds the national benchmark of 2.21% by 1.40 pp.
Risk & Credit Quality
Delinquency Rate (%)
Net Worth Ratio (%)
The risk profile for Arizona credit unions remains broadly stable and favorable relative to peers. Delinquency held near flat at 0.72% in Q2 2026, up just 4 bps from 0.68% in Q1 2026 and down 5 bps from 0.77% in Q2 2025 — 16 bps below the national benchmark of 0.88%. Net worth improved to 11.66%, up 15 bps from 11.51% in Q1 2026 and up 23 bps from 11.43% in Q2 2025, though the cohort remains 2.15 pp below the national ratio of 13.81%, representing the most significant structural risk concern for the cohort.
Portfolio Mix
First Mortgage (%)
Indirect Auto (%)
Share Certificates (%)
Portfolio composition continued to shift in Q2 2026. First mortgage concentration rose to 14.73%, up 22 bps from 14.51% in Q1 2026 and up 74 bps from 13.99% in Q2 2025, though it remains well below the national level of 22.22%. Indirect auto exposure declined to 21.27%, down 59 bps QoQ and down 2.57 pp from 23.84% in Q2 2025, yet still far exceeds the national rate of 7.71%. Share certificate concentration grew to 17.91%, up 58 bps QoQ and up 1.63 pp YoY, approaching but still below the national average of 20.02%.
Strategic Implications
- • The seven-quarter member growth streak against a national backdrop of -0.69% suggests Arizona CUs should invest now in onboarding infrastructure to convert new members into primary financial relationships before competitors respond.
- • NIM at 4.00% — 25 bps above national — provides a profitability buffer, but accelerating loan growth at 2.29% must be paired with disciplined underwriting to prevent delinquency from rising off its current favorable 0.72% base.
- • Indirect auto exposure at 21.27% — nearly three times the national rate of 7.71% and declining 2.57 pp YoY — signals a deliberate portfolio rebalancing; leadership should articulate a target concentration and timeline to manage dealer-channel risk.
- • Net worth at 11.66%, trailing the national benchmark by 2.15 pp, constrains capacity for continued asset expansion at 4.51% annual rates; capital planning and retained earnings strategies should be prioritized before the cushion narrows further.
- • Rising certificate concentration (up 1.63 pp YoY to 17.91%) reflects member preference for rate-sensitive deposits; CUs should model repricing risk scenarios to protect NIM if the rate environment shifts.
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Notable Patterns
How This Cohort Compares to National
Indirect Auto Pct is 13.6pp above national
First Mortgage Share is 7.5pp below national
Net Worth Ratio is 2.1pp below national
Certificate Pct is 2.1pp below national
Loan Growth (annual) is 2.1pp above national
Data Quality Notes
1 metric(s) had extreme values filtered using MAD-based, z-score > 5.0.
Total Delinquency Rate (60+ days) (Absolute)
1 CU(s) excluded
Raw average: 0.91% →
Cleaned average: 0.72%
View excluded credit unions
- U-HAUL (15847) - 7.14%