Arkansas credit unions delivered a standout profitability quarter in Q2 2026, with ROA jumping to 0.96% from 0.53% in Q1 2026 — now 7 bps above the national 0.89% benchmark — while NIM held at 4.06%, 32 bps above national. Yet the earnings story is shadowed by deepening member attrition: membership contracted at -1.69%, marking five consecutive negative quarters and running 100 bps worse than the national -0.69% rate. Loan contraction also persisted at -1.88% for a fifth straight quarter. Capital strength remains exceptional at 17.26%, but reversing member and loan decline is the defining strategic challenge ahead.
AR Credit Unions Post Strong Profit Surge But Shed Members for Fifth Straight Quarter
Key Insights
Year-over-Year Changes
First Mortgage Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
8.38% → 9.49%
(+1.11%)
Indirect Auto Concentration (%) (Absolute)
▼
2025-Q2
→
2026-Q2
2.90% → 2.23%
(-0.67%)
Asset Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
0.52% → 1.41%
(+0.88%)
Share Certificate Concentration (%) (Absolute)
▼
2025-Q2
→
2026-Q2
16.43% → 15.41%
(-1.02%)
Loan Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
-2.14% → -1.88%
(+0.26%)
Quarter-over-Quarter Changes
First Mortgage Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
9.04% → 9.49%
(+0.45%)
Indirect Auto Concentration (%) (Absolute)
▼
2026-Q1
→
2026-Q2
2.36% → 2.23%
(-0.13%)
Asset Growth (YoY) (Absolute)
▲
2026-Q1
→
2026-Q2
1.35% → 1.41%
(+0.06%)
Share Certificate Concentration (%) (Absolute)
—
2026-Q1
→
2026-Q2
15.40% → 15.41%
(+0.01%)
Loan Growth (YoY) (Absolute)
▼
2026-Q1
→
2026-Q2
-1.58% → -1.88%
(-0.30%)
Key Metrics
Return on Assets
0.96%
▲ YoY7 basis points above national
Net Interest Margin
4.06%
▼ YoY32 basis points above national
Asset Growth
1.41%
▲ YoYMember Growth
-1.69%
Delinquency Rate
0.99%
▼ YoYNet Worth Ratio
17.26%
AMR Growth
0.54%
Deposit Growth
0.51%
Insufficient historical data for trend visualization
Loan Growth
-1.88%
▲ YoYMember Engagement
Member Growth (YoY %)
Member engagement in Arkansas credit unions continued to deteriorate in Q2 2026. Membership growth held at -1.69%, essentially stable versus -1.65% in Q1 2026 (a change of just -0.05 pp QoQ), but the year-over-year trajectory is more troubling: membership contracted at -1.31% in Q2 2025, meaning the pace of decline has decelerated by -0.39 pp over the past year. This marks five consecutive quarters of negative member growth — last positive in Q1 2025 at +2.49% — and sits 100 basis points below the national rate of -0.69%, signaling a structural engagement gap that demands urgent attention.
Profitability
Return on Assets (%)
Net Interest Margin (%)
Profitability was the clear bright spot for Arkansas credit unions in Q2 2026. ROA surged to 0.96%, up sharply from 0.53% in Q1 2026 (+0.42 pp QoQ) and well above the 0.75% posted in Q2 2025 (+0.21 pp YoY), placing the cohort 7 bps ahead of the national benchmark of 0.89%. NIM also improved modestly QoQ, rising to 4.06% from 3.99% in Q1 2026 (+0.07 pp), though it remains below the 4.26% recorded in Q2 2025 (-0.20 pp YoY). At 32 bps above the national NIM of 3.74%, Arkansas CUs retain a meaningful spread advantage.
Growth
Asset Growth (YoY %)
Member Growth (YoY %)
Asset growth in Arkansas credit unions accelerated modestly in Q2 2026, reaching 1.41% versus 1.35% in Q1 2026 (+0.06 pp QoQ) and up substantially from 0.52% in Q2 2025 (+0.88 pp YoY) — extending a positive streak to nine consecutive quarters since Q2 2024. However, asset growth trails the national rate of 2.63% by 1.22 pp. Loan growth remains a persistent drag, decelerating to -1.88% from -1.58% in Q1 2026 (-0.30 pp QoQ), though it has improved from -2.14% in Q2 2025 (+0.26 pp YoY). Loan contraction has now persisted for five straight quarters.
Risk & Credit Quality
Delinquency Rate (%)
Net Worth Ratio (%)
The risk profile for Arkansas credit unions in Q2 2026 is mixed. Delinquency ticked up to 0.99% from 0.93% in Q1 2026 (+0.07 pp QoQ), placing the cohort 12 bps above the national benchmark of 0.88% — a near-term concern. On a year-over-year basis, however, delinquency improved from 1.08% in Q2 2025 (-0.09 pp YoY), suggesting a longer-term stabilization trend. Capital strength is a clear counterweight: net worth rose to 17.26% from 17.13% in Q1 2026 (+0.13 pp QoQ) and from 16.72% in Q2 2025 (+0.54 pp YoY), standing 3.45 pp above the national 13.81% — a formidable buffer.
Portfolio Mix
First Mortgage (%)
Indirect Auto (%)
Share Certificates (%)
Arkansas credit unions' portfolio composition continued to shift in Q2 2026. First mortgage concentration rose to 9.49% from 9.04% in Q1 2026 (+0.45 pp QoQ) and from 8.38% in Q2 2025 (+1.11 pp YoY), yet remains far below the national benchmark of 22.22%, indicating limited real estate exposure. Indirect auto concentration declined to 2.23% from 2.36% in Q1 2026 (-0.13 pp QoQ) and from 2.90% in Q2 2025 (-0.67 pp YoY), well below the national 7.71%. Share certificates edged to 15.41%, essentially stable QoQ but down 1.02 pp YoY from 16.43%, trailing the national 20.02%.
Strategic Implications
- • Five consecutive quarters of member contraction at -1.69% — 100 bps below national — demands a targeted acquisition and retention strategy, particularly digital onboarding and community outreach to reverse structural disengagement.
- • Exceptional capital strength at 17.26% (3.45 pp above national) provides Arkansas CUs with significant capacity to fund growth initiatives, yet loan contraction at -1.88% for five straight quarters suggests deployment barriers that must be diagnosed and addressed.
- • ROA at 0.96% and NIM at 4.06% — both above national benchmarks — create a rare window to invest earnings into member-facing technology and product expansion before competitive pressures compress margins.
- • First mortgage concentration at 9.49% is less than half the national 22.22%, leaving Arkansas CUs underexposed to real estate lending; a deliberate mortgage growth strategy could diversify revenue and deepen member relationships.
- • Delinquency rising QoQ to 0.99% while loan growth remains negative warrants close monitoring — credit quality pressure on a shrinking book could disproportionately impact earnings if the trend accelerates into 2026-Q3.
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Notable Patterns
How This Cohort Compares to National
First Mortgage Share is 12.7pp below national
Indirect Auto Pct is 5.5pp below national
Certificate Pct is 4.6pp below national
Net Worth Ratio is 3.5pp above national
Loan Growth (annual) is 2.1pp below national
Data Quality Notes
5 metric(s) had extreme values filtered using MAD-based, z-score > 5.0.
Total Delinquency Rate (60+ days) (Absolute)
4 CU(s) excluded
Raw average: 1.94% →
Cleaned average: 0.99%
View excluded credit unions
- L R F D (6725) - 6.75%
- ARKANSAS SUPERIOR (11685) - 7.38%
- ARKANSAS TEACHERS (24433) - 11.22%
- NORTH LITTLE ROCK EDUCATORS (24434) - 21.98%
Return on Assets (ROA) (Absolute)
3 CU(s) excluded
Raw average: 1.64% →
Cleaned average: 0.96%
View excluded credit unions
- NORTH LITTLE ROCK EDUCATORS (24434) - 20.44%
- U.P. EMPLOYEES (24435) - 8.60%
- ARKANSAS SUPERIOR (11685) - 5.90%
Asset Growth (YoY) (Absolute)
2 CU(s) excluded
Raw average: 0.64% →
Cleaned average: 1.41%
View excluded credit unions
- FAIR BREAK (24961) - 0.00%
- NORTH LITTLE ROCK EDUCATORS (24434) - -33.11%
Member Growth (YoY) (Absolute)
1 CU(s) excluded
Raw average: -1.66% →
Cleaned average: -1.69%
View excluded credit unions
- FAIR BREAK (24961) - 0.00%
Net Worth Ratio (Absolute)
1 CU(s) excluded
Raw average: 19.02% →
Cleaned average: 17.26%
View excluded credit unions
- FAIR BREAK (24961) - 100.00%