Indiana Credit Unions

Member engagement remains the cohort's most pressing vulnerability. Member growth decelerated to -1.33% in 2026-Q2 from -1.26% in 2026-Q1 (QoQ), marking the sixth consecutive quarter of negative membership since 2025-Q1 — the last positive reading was +0.08% in 2024-Q4. Year-over-year, the pace of decline improved modestly, accelerating 8 bps from -1.41% in 2025-Q2, but Indiana CUs still trail the national member growth rate of -0.69% by 63 basis points. Without a reversal in membership trends, long-term growth capacity is at risk despite strong near-term financials.

Profitability surged in 2026-Q2 across all three key metrics. ROA increased to 0.98% from 0.73% in 2026-Q1 (QoQ) and from 0.78% in 2025-Q2 (YoY), placing Indiana CUs 10 bps above the national benchmark of 0.89%. NIM increased to 3.84% from 3.73% QoQ and from 3.67% YoY, also 10 bps above the national 3.74%. The efficiency ratio improved to 78.00% from 80.00% in 2026-Q1, though it edged up 0.30 pp from 77.70% in 2025-Q2 and remains marginally tighter than the national 78.06%. The QoQ efficiency gain signals meaningful cost discipline.

Asset growth accelerated to 3.32% in 2026-Q2, up from 2.91% in 2026-Q1 (QoQ) and from 2.64% in 2025-Q2 (YoY), extending a positive streak now running nine consecutive quarters since 2024-Q2 and outpacing the national rate of 2.63% by 70 bps. Loan growth, however, decelerated to 0.65% from 1.28% in 2026-Q1 (QoQ), though it marks the third consecutive positive quarter since 2025-Q4 and represents a dramatic improvement from -1.18% in 2025-Q2 (YoY). At 0.65%, loan growth still exceeds the national 0.22% by 43 bps, indicating solid underlying demand.

The risk profile deteriorated in 2026-Q2, driven by rising delinquency. The delinquency rate increased to 1.05% from 0.92% in 2026-Q1 (QoQ) and from 0.86% in 2025-Q2 (YoY), now sitting 18 bps above the national benchmark of 0.88%. This upward trajectory across both timeframes warrants close monitoring. Partially offsetting this concern, net worth strengthened to 13.87% from 13.43% in 2026-Q1 (QoQ) and from 13.34% in 2025-Q2 (YoY), now 6 bps above the national 13.81%. Capital buffers are solid, but the accelerating delinquency trend is the clearest risk signal in the portfolio.

Indiana CUs shifted portfolio composition meaningfully over the past year. First mortgage concentration rose to 21.41% in 2026-Q2, up 0.51 pp from 2026-Q1 (QoQ) and up 1.13 pp from 20.29% in 2025-Q2 (YoY), though it remains 81 bps below the national 22.22%. Indirect auto concentration increased to 11.10%, up 0.66 pp QoQ and 0.26 pp YoY, running well above the national 7.71%. Share certificate concentration grew to 19.35%, up 0.41 pp QoQ and 1.02 pp from 18.33% in 2025-Q2, approaching but still below the national 20.02%, reflecting continued member preference for fixed-rate savings.