California Credit Unions

Member growth edged to -0.43% in Q2 2026, a modest improvement from -0.52% in Q1 2026 (QoQ acceleration of 9 bps), but a sharp reversal from the +0.12% recorded in Q2 2025. This marks the third consecutive quarter of negative member growth since 2025-Q4, when the cohort last posted a positive reading of +0.35% in Q3 2025. On the positive side, California CUs outperform the national benchmark of -0.69% by 27 basis points, suggesting relative resilience even as absolute membership contraction continues to pressure long-term growth strategy.

Profitability improved meaningfully in Q2 2026, with ROA rising to 0.73% from 0.46% in Q1 2026 — a gain of 0.27 pp quarter-over-quarter — and up 0.17 pp from 0.56% in Q2 2025. Despite this progress, California CUs trail the national benchmark by 16 basis points. Net interest margin held steady at 3.39% in Q2 2026, essentially unchanged from Q1 2026 (+0.002 pp), though NIM has expanded 0.15 pp year-over-year from 3.25% in Q2 2025. The NIM gap versus the national 3.74% remains a structural drag on earnings capacity.

Asset growth accelerated to 2.48% in Q2 2026, up from 2.17% in Q1 2026 (QoQ) and from 1.55% in Q2 2025 (YoY), extending a positive streak now running six consecutive quarters since Q1 2025. Loan growth decelerated modestly to 1.46% from 1.67% in Q1 2026, but accelerated sharply from 0.49% in Q2 2025 — a 0.97 pp year-over-year improvement — and has been positive for five straight quarters. California CUs lead the national loan growth benchmark of 0.22% by 1.25 percentage points, a meaningful competitive advantage in the current environment.

The risk profile showed modest deterioration in Q2 2026. Delinquency increased to 0.62% from 0.55% in Q1 2026 (+7 bps QoQ) and from 0.56% in Q2 2025 (+6 bps YoY), though California CUs remain 25 basis points below the national benchmark of 0.88%, a meaningful buffer. Net worth strengthened to 12.25% from 11.94% in Q1 2026 (+0.32 pp QoQ) and from 11.71% in Q2 2025 (+0.55 pp YoY), reflecting improving capital accumulation — though the cohort still trails the national 13.81% by 1.56 percentage points, leaving limited cushion relative to peers.

First mortgage concentration held near-stable at 32.82% in Q2 2026, essentially unchanged from 32.84% in Q1 2026 (-2 bps QoQ) but up 0.41 pp from 32.41% in Q2 2025 — and significantly above the national benchmark of 22.22%. Indirect auto edged up to 9.17% from 9.02% in Q1 2026 (+0.14 pp QoQ) but fell 0.50 pp year-over-year from 9.67%, remaining above the national 7.71%. Share certificate concentration rose to 22.18% from 21.63% in Q1 2026 (+0.55 pp QoQ) and from 21.47% in Q2 2025 (+0.71 pp YoY), slightly above the national 20.02%, reflecting continued member appetite for fixed-rate savings.