South Carolina Credit Unions

Member engagement deteriorated on a quarter-over-quarter basis in Q2 2026: member growth decelerated to -0.19% from +0.03% in Q1 2026, a 0.23 pp swing into negative territory. Year-over-year, however, the picture is meaningfully better — membership contraction of -0.19% compares favorably to -0.73% in Q2 2025, an improvement of 0.54 pp. At -0.19%, SC credit unions stand 50 basis points above the national member growth rate of -0.69%, suggesting the cohort is losing members more slowly than the industry at large, but the QoQ reversal warrants close monitoring.

Profitability improved quarter-over-quarter: ROA increased to 0.90% in Q2 2026 from 0.80% in Q1 2026, a gain of 0.10 pp, placing SC credit unions 2 basis points above the national benchmark of 0.89%. On a year-over-year basis, ROA decreased 0.22 pp from 1.12% in Q2 2025, reflecting a normalization from an elevated prior-year base. NIM remained stable QoQ at 4.16% versus 4.14% in Q1 2026 (a modest +3 bps), but edged down 5 bps from 4.22% in Q2 2025 — still a commanding 42 bps above the national NIM of 3.74%.

Growth dynamics strengthened materially in Q2 2026. Loan growth accelerated to 2.43% from 1.78% in Q1 2026 (+0.65 pp QoQ) and from 0.73% in Q2 2025 (+1.70 pp YoY), marking five consecutive quarters of positive loan growth since Q2 2025 — 2.22 percentage points above the national rate of 0.22%. Asset growth decelerated modestly to 2.86% from 2.98% in Q1 2026 (-0.12 pp QoQ), but accelerated sharply from 1.62% in Q2 2025 (+1.24 pp YoY), extending a positive streak to nine consecutive quarters. Deposit growth was stable at 2.27%, just 7 bps above the national 2.21%.

The risk profile showed modest deterioration quarter-over-quarter but remains broadly contained. Delinquency increased to 0.85% in Q2 2026 from 0.74% in Q1 2026 (+0.11 pp), though year-over-year the rate is essentially stable, up just 0.02 pp from 0.83% in Q2 2025. At 0.85%, SC credit unions sit 2 basis points below the national delinquency rate of 0.88%, a thin but favorable margin. Offsetting the delinquency uptick, net worth increased to 14.87% from 14.68% in Q1 2026 (+0.19 pp QoQ) and from 14.48% in Q2 2025 (+0.39 pp YoY), standing 1.06 percentage points above the national 13.81%.

Portfolio composition shifted toward longer-duration and higher-yield assets in Q2 2026. First mortgage concentration rose to 18.60% from 18.00% in Q1 2026 (+0.60 pp QoQ) and from 17.49% in Q2 2025 (+1.11 pp YoY), though it remains 3.62 percentage points below the national 22.22%. Indirect auto held steady, edging to 5.97% from 5.87% in Q1 2026 (+0.10 pp QoQ) and nearly flat from 5.93% in Q2 2025 — well below the national 7.71%. Share certificate concentration grew to 18.28% from 17.95% in Q1 2026 (+0.33 pp QoQ) and from 16.87% in Q2 2025 (+1.41 pp YoY), still trailing the national 20.02%.