Alabama Credit Unions

Member engagement showed mixed signals as growth accelerated to 0.16% in Q3 from -0.42% in Q2, marking a notable quarterly turnaround. However, the metric declined substantially from 2.70% year-over-year, indicating ongoing membership challenges despite recent stabilization efforts.

Profitability strengthened across both timeframes, with ROA increasing to 0.78% from 0.73% quarterly and surging from 0.57% annually. NIM remained stable at 3.66% quarter-over-quarter but improved from 3.49% year-over-year, matching national ROA benchmarks while trailing NIM by 7 basis points.

Growth momentum accelerated significantly, with asset growth reaching 2.26% from 1.64% quarterly, while deposit growth accelerated to 1.73% from 1.59%. Loan growth remained stable at 0.04%, though all metrics trail national benchmarks by 16-58 basis points.

Risk metrics remained well-controlled with delinquencies stable at 0.95% quarterly and decreasing 8 basis points annually from 1.03%. Net worth strengthened to 16.13% from 15.81% quarterly and 15.29% annually, maintaining a substantial 245 basis point cushion above national levels.

Portfolio composition shifted toward higher-yielding assets, with certificates increasing to 20.75% (+1.60pp quarterly, +2.89pp annually) and first mortgages rising to 21.43% (+1.80pp quarterly, +1.91pp annually). Indirect auto lending declined to 5.38%, remaining below the 7.90% national average.