Illinois Credit Unions

Member engagement remains under pressure for Illinois credit unions in Q2 2026. Member growth decelerated to -0.67% from -0.47% in Q1 2026 (QoQ), extending a streak of negative growth for five consecutive quarters since Q2 2025, when the last positive reading of +3.79% was recorded. On a year-over-year basis, however, the picture is improving: the -0.67% rate in Q2 2026 represents an acceleration of +0.46 pp compared to -1.13% in Q2 2025. At just 3 basis points above the national benchmark of -0.69%, Illinois CUs are tracking closely with broader industry contraction.

Profitability surged in Q2 2026, with ROA climbing to 1.08% — an increase of 0.37 pp from 0.71% in Q1 2026 and 0.24 pp above the 0.84% recorded in Q2 2025, placing Illinois CUs 19 basis points ahead of the national benchmark of 0.89%. Net interest margin held essentially stable quarter-over-quarter at 3.70%, up just 2 basis points from 3.68% in Q1 2026, while rising 6 basis points from 3.65% in Q2 2025 on a year-over-year basis. NIM trails the national average by 4 basis points, but the ROA outperformance signals strong operational efficiency gains driving earnings growth.

Asset growth in Q2 2026 decelerated modestly to 2.38% from 2.54% in Q1 2026 (QoQ), though it accelerated from 2.26% in Q2 2025 (YoY), marking nine consecutive quarters of positive asset growth since Q2 2024. Illinois CUs trail the national asset growth rate of 2.63% by 25 basis points. Loan growth tells a more concerning story: contraction deepened to -1.54% in Q2 2026 from -0.41% in Q1 2026 — a deceleration of 1.13 pp — and worsened from -1.41% in Q2 2025, now five straight quarters negative and 1.76 pp below the national benchmark of 0.22%.

The risk profile for Illinois credit unions remains stable and favorable in Q2 2026. Delinquency held essentially flat at 0.72%, a negligible 1 basis point improvement from 0.73% in Q1 2026 and 3 basis points below the 0.74% recorded in Q2 2025 — both changes classified as stable. At 16 basis points below the national benchmark of 0.88%, Illinois CUs maintain a meaningfully cleaner loan book than peers. Net worth strengthened to 14.71%, up 0.12 pp from 14.59% in Q1 2026 and essentially stable year-over-year versus 14.68% in Q2 2025, sitting a robust 91 basis points above the national benchmark of 13.81%.

Illinois credit unions continue to hold a distinctly different portfolio mix than the national average. First mortgage concentration fell to 13.45% in Q2 2026 — down 0.86 pp from 14.32% in Q1 2026 (QoQ) and down 0.27 pp from 13.72% in Q2 2025 (YoY) — remaining sharply below the national benchmark of 22.22%. Indirect auto exposure slipped to 6.80%, declining 0.40 pp from Q1 2026 and 0.28 pp from Q2 2025, trailing the national 7.71%. Share certificate concentration edged up to 14.04%, essentially stable from 14.00% in Q1 2026 but up 0.59 pp from 13.44% in Q2 2025, though still well below the national 20.02%.