Colorado Credit Unions

Member engagement deteriorated on a year-over-year basis: membership growth decelerated sharply from +0.75% in Q1 2025 to -0.81% in Q1 2026, a swing of -1.56 pp that places Colorado CUs 16 bps below the national rate of -0.65%. On a quarter-over-quarter basis, however, the trend showed modest improvement — the contraction rate accelerated from -1.29% in Q4 2025 to -0.81% in Q1 2026, a +0.48 pp recovery. The picture is mixed: near-term momentum is stabilizing, but the year-over-year reversal from positive to negative growth signals a structural engagement challenge that demands attention.

Profitability remained essentially flat across both timeframes, with ROA holding stable at 0.49% in Q1 2026 versus 0.48% in Q4 2025 (QoQ, +1 bp) and 0.48% in Q1 2025 (YoY, +2 bps). NIM edged down 4 bps quarter-over-quarter from 3.53% to 3.49%, while improving 2 bps year-over-year from 3.47%. Both metrics trail national benchmarks — ROA by 18 bps and NIM by 21 bps versus the national 3.70%. The persistent gap below national peers, despite stability in both measures, underscores that Colorado CUs have yet to translate balance-sheet growth into meaningful earnings improvement.

Growth metrics were a clear bright spot in Q1 2026. Asset growth accelerated to 4.54% from 2.87% in Q4 2025 (QoQ, +1.67 pp) and from just 0.47% in Q1 2025 (YoY, +4.07 pp), running 1.91 pp above the national benchmark of 2.64%. Loan growth rebounded strongly to 2.23% from -0.12% in Q4 2025 (QoQ, +2.35 pp), now 1.92 pp above the national 0.31%. Year-over-year loan growth data was insufficient for comparison. The acceleration in both assets and loans represents the cohort's most compelling performance story this quarter, suggesting demand-side conditions are improving across Colorado.

The risk profile improved modestly across both timeframes. Delinquency decreased to 0.69% in Q1 2026 from 0.81% in Q4 2025 (QoQ, -0.12 pp) and from 0.75% in Q1 2025 (YoY, -0.06 pp), placing Colorado CUs 9 bps below the national benchmark of 0.78% — a favorable position. Net worth held stable quarter-over-quarter at 12.07%, up just 3 bps from 12.04% in Q4 2025, but increased 8 bps year-over-year from 11.99% in Q1 2025. At 12.07%, net worth remains 1.55 pp below the national 13.61%, representing a capital adequacy gap that warrants monitoring as asset growth accelerates.

Colorado CUs carry a distinctly mortgage-heavy, certificate-funded profile relative to national peers. First mortgage concentration rose to 29.82% in Q1 2026, up 0.24 pp from 29.58% in Q4 2025 and up 0.23 pp from 29.60% in Q1 2025, running 7.67 pp above the national 22.15%. Share certificates climbed to 26.67%, up 0.51 pp quarter-over-quarter from 26.16% and up 1.25 pp year-over-year from 25.42%, far exceeding the national 19.80%. Indirect auto held at 12.38%, up 0.23 pp from Q4 2025 but down 0.62 pp year-over-year from 13.01%, still well above the national 7.73%.