Arkansas Credit Unions

Member engagement showed mixed signals in Q3 2025. Member growth remained negative at -0.89% but accelerated from -1.31% last quarter, indicating improving retention trends. However, the cohort still trails the national average by 28 basis points and represents a dramatic reversal from the 7.15% growth rate achieved a year ago.

Profitability performance was exceptional across both timeframes. ROA increased to 0.86% from 0.75% quarter-over-quarter and 0.73% year-over-year, positioning Arkansas credit unions 8 basis points above national averages. Net interest margin expanded to 4.33%, up 7 basis points from last quarter and 16 basis points from a year ago, substantially outperforming the national 3.72%.

Growth trends showed acceleration quarter-over-quarter but remained below national benchmarks. Asset growth accelerated to 1.50% from 0.52% last quarter, while loan growth accelerated to -1.04% from -2.14% despite remaining negative. Deposit growth accelerated to 0.51% from 0.21%, though all growth metrics trail national averages significantly.

Risk metrics improved substantially across both timeframes. Delinquencies decreased to 0.91% from 1.08% quarter-over-quarter and 1.14% year-over-year, though remaining 6 basis points above national levels. Net worth ratio remained stable at 16.59%, down slightly from 16.72% last quarter but essentially unchanged from 16.61% a year ago, maintaining a strong 291 basis point cushion above national averages.

Portfolio composition shifted toward traditional lending products. First mortgage concentration increased to 8.60% from 8.38% last quarter and 7.62% a year ago, though remaining well below the national 21.76%. Indirect auto lending decreased to 2.64% from 2.90% last quarter and 3.26% a year ago. Certificate concentration rose to 16.24%, up from 15.03% annually.