Arkansas Credit Unions

Member engagement showed mixed signals in Q4 2025. Growth accelerated quarter-over-quarter to -0.68% from -0.89%, indicating improving momentum, but decelerated dramatically year-over-year from 2.13% to -0.68%. The cohort slightly outperformed the national benchmark of -0.69%, suggesting relative resilience in member retention despite ongoing membership contraction.

Profitability metrics displayed stability with some quarterly pressure. ROA decreased to 0.76% from 0.86% quarter-over-quarter but remained stable year-over-year at 0.76% versus 0.73%. NIM followed a similar pattern, declining from 4.33% to 4.22% quarterly while staying stable annually. Both metrics significantly outperformed national benchmarks, with NIM exceeding the national average by 49 basis points.

Growth momentum showed signs of stabilization after significant deceleration. Asset growth remained stable quarter-over-quarter at 1.51% but decelerated substantially from 7.02% year-over-year. Loan growth accelerated meaningfully from -1.04% to -0.39% quarterly, suggesting improving lending activity. However, both metrics underperformed national benchmarks, with asset growth trailing by 1.60 percentage points.

Risk metrics presented a mixed picture with emerging credit concerns offset by strong capitalization. Delinquencies increased notably to 1.14% from 0.91% quarter-over-quarter, though remained stable year-over-year. Net worth strengthened to 17.36% from 16.59% quarterly and stayed stable annually, providing substantial buffer at 3.68 percentage points above the national average of 13.68%.

Portfolio composition shifted toward residential lending with reduced auto exposure. First mortgage concentration increased to 8.90% from 8.60% quarterly and 7.84% annually, though remaining well below the 21.97% national average. Indirect auto lending decreased to 2.47% from 2.64% quarterly and 3.20% annually. Certificate concentrations declined to 15.55% from 16.24% quarterly while increasing slightly year-over-year.