Pennsylvania Credit Unions

Member engagement in Pennsylvania continued to deteriorate in Q2 2026, with member growth registering -0.95% — a deceleration of 7 bps from -0.88% in Q1 2026, extending a negative streak now five consecutive quarters long since Q2 2025, when the cohort last posted positive growth of +2.24% in Q1 2025. On a year-over-year basis, however, the picture is less dire: the -0.95% reading in Q2 2026 represents a meaningful improvement from -1.39% in Q2 2025. The cohort trails the national member growth rate of -0.69% by 26 basis points, signaling persistent competitive pressure on membership acquisition and retention.

Profitability was the clear bright spot for Pennsylvania credit unions in Q2 2026. ROA increased to 0.94%, up 0.16 pp from 0.79% in Q1 2026 and up 0.13 pp from 0.81% in Q2 2025 — placing the cohort 6 bps above the national benchmark of 0.89%. Net interest margin held largely stable quarter-over-quarter, edging up just 3 bps from 3.47% in Q1 2026 to 3.51% in Q2 2026, while on a year-over-year basis NIM increased 7 bps from 3.43% in Q2 2025. At 3.51%, NIM remains 24 bps below the national average of 3.74%, indicating room for further margin improvement.

Asset growth for Pennsylvania credit unions decelerated to 2.12% in Q2 2026, down 0.45 pp from 2.57% in Q1 2026, though it remains modestly above the 2.07% recorded in Q2 2025 — an acceleration of just 5 bps year-over-year. Notably, this marks nine consecutive quarters of positive asset growth since Q2 2024. Loan growth, however, remained deeply negative and essentially stable, at -1.72% in Q2 2026 versus -1.70% in Q1 2026 and -1.71% in Q2 2025, now five consecutive quarters in contraction. The cohort trails the national loan growth rate of 0.22% by a wide 1.94 percentage points, a persistent drag on earning-asset composition.

The risk profile for Pennsylvania credit unions showed a mixed but cautionary picture in Q2 2026. Delinquency increased to 0.97% from 0.82% in Q1 2026 — a 15 bp quarter-over-quarter rise — and is up 11 bps from 0.86% in Q2 2025, now sitting 10 bps above the national benchmark of 0.88%. This upward trend warrants close attention. Offsetting credit quality concerns, net worth strengthened to 14.89% in Q2 2026, up 0.23 pp from 14.66% in Q1 2026 and up 0.51 pp from 14.38% in Q2 2025, holding a substantial 1.08 pp cushion above the national average of 13.81%, providing meaningful loss-absorption capacity.

Pennsylvania credit unions shifted their portfolio mix modestly in Q2 2026. First mortgage concentration rose to 21.12%, up 0.33 pp from 20.79% in Q1 2026 and up 0.94 pp from 20.18% in Q2 2025, though it remains 1.10 pp below the national average of 22.22%. Indirect auto concentration increased to 8.42%, up 0.15 pp quarter-over-quarter and 0.37 pp year-over-year, slightly above the national rate of 7.71%. Share certificate concentration reached 15.57%, rising 0.13 pp from Q1 2026 and 0.65 pp from Q2 2025, but remains notably below the national average of 20.02%, suggesting Pennsylvania members hold comparatively fewer term deposits.