New Mexico Credit Unions

Member engagement deteriorated further in 2026-Q2, with membership growth decelerating to -1.11% — worsening from -0.78% in 2026-Q1 and sharply reversing the +0.84% growth recorded in 2025-Q2, a swing of -1.95 pp year-over-year. This marks the second consecutive quarter of negative membership growth, after the last positive reading of +0.58% in 2025-Q4. The cohort now sits 41 basis points below the national benchmark of -0.69%, meaning NM credit unions are losing members faster than the industry average, raising urgent questions about retention and acquisition strategies.

Profitability was the clear bright spot in 2026-Q2. ROA rose to 1.02%, up 0.23 pp from 0.79% in 2026-Q1 and up 0.18 pp from 0.85% in 2025-Q2, placing NM credit unions 14 basis points above the national benchmark of 0.89%. Net interest margin held steady at 3.93% — essentially stable from 3.90% last quarter (+3 bps) while advancing a meaningful 0.18 pp from 3.76% a year ago, and sitting 19 bps above the national NIM of 3.74%. The combination of expanding margins and strong returns signals a well-managed income position.

Asset growth decelerated to 3.36% in 2026-Q2, down 0.32 pp from 3.68% in 2026-Q1 and down 1.82 pp from 5.18% in 2025-Q2, yet remains positive for nine consecutive quarters since 2024-Q2 and stands 73 basis points above the national benchmark of 2.63%. Loan growth similarly decelerated, slipping to 2.07% from 2.17% last quarter (-0.11 pp) and from 3.17% a year ago (-1.10 pp), though it has been positive for five consecutive quarters since 2025-Q2 and leads the national rate of 0.22% by a substantial 1.85 percentage points.

The risk profile showed mixed signals in 2026-Q2. Delinquency increased to 0.86%, up 0.19 pp from 0.67% in 2026-Q1 and up 0.08 pp from 0.78% in 2025-Q2, though it remains just 1 basis point below the national benchmark of 0.88% — a thin cushion. Conversely, the net worth ratio strengthened to 14.21%, up 0.13 pp from 14.09% last quarter and up 0.59 pp from 13.62% a year ago, now 40 basis points above the national benchmark of 13.81%. Capital buffers are robust, but the accelerating delinquency trend demands close attention heading into 2026-Q3.

NM credit unions continued to shift their portfolio mix in 2026-Q2. First mortgage concentration rose to 17.34%, up 0.23 pp from 17.11% in 2026-Q1 and up 0.98 pp from 16.36% in 2025-Q2, though it remains well below the national benchmark of 22.22%. Indirect auto concentration held nearly stable at 14.32% — up just 4 bps QoQ and 6 bps YoY — yet substantially exceeds the national rate of 7.71%. Share certificate concentration climbed to 24.27%, up 0.25 pp from 2026-Q1 and 0.49 pp from 2025-Q2, outpacing the national certificate share of 20.02%, reflecting continued member preference for fixed-rate savings.