Connecticut Credit Unions

Member engagement deteriorated markedly in Q1 2026. The member growth rate of -2.13% represents a meaningful acceleration in losses compared to -2.42% in Q4 2025 (QoQ improvement of 0.29 pp), yet the year-over-year picture is far more troubling: membership contraction deepened from -0.76% in Q1 2025 — a 1.37 pp deceleration. Connecticut credit unions now trail the national member growth rate of -0.65% by 1.48 percentage points, suggesting structural challenges in member acquisition and retention that extend well beyond seasonal patterns.

Profitability remained resilient despite modest softening. ROA held at 0.71% in Q1 2026, essentially stable quarter-over-quarter (down just 0.02 pp from 0.73% in Q4 2025) and meaningfully improved year-over-year from 0.54% in Q1 2025 — a gain of 0.17 pp. At 4 basis points above the national benchmark of 0.67%, Connecticut credit unions are outperforming peers on returns. NIM was equally stable at 3.58%, unchanged from Q4 2025 and up 0.06 pp from 3.52% in Q1 2025, though it trails the national NIM of 3.70% by 12 basis points.

Growth momentum decelerated across the board in Q1 2026. Asset growth slowed to 1.78%, down from 2.86% in Q4 2025 (a 1.08 pp deceleration QoQ) and from 2.39% in Q1 2025 (a 0.61 pp deceleration YoY), leaving Connecticut 86 basis points below the national asset growth rate of 2.64%. Loan growth nearly stalled at 0.04% in Q1 2026, decelerating sharply from 1.35% in Q4 2025 — a 1.31 pp pullback — and landing 27 basis points below the national loan growth rate of 0.31%. Year-over-year loan growth comparison is unavailable for this period.

The risk profile improved modestly in Q1 2026. Delinquency decreased to 0.69% from 0.86% in Q4 2025 — a meaningful 0.18 pp improvement quarter-over-quarter — and remained essentially stable year-over-year, up just 0.005 pp from 0.68% in Q1 2025. At 9 basis points below the national delinquency rate of 0.78%, Connecticut credit unions demonstrate solid credit discipline. Net worth strengthened to 12.71%, up 0.20 pp from 12.51% in Q4 2025 and up 1.16 pp from 11.54% in Q1 2025, though it remains 91 basis points below the national benchmark of 13.61%.

Portfolio composition shifted gradually toward mortgages and term deposits. First mortgage concentration rose to 20.48% in Q1 2026, up 0.35 pp from 20.14% in Q4 2025 and up 1.27 pp from 19.21% in Q1 2025, though still trailing the national average of 22.15%. Share certificate concentration dipped slightly to 14.50% from 14.59% in Q4 2025 (down 0.09 pp QoQ) but climbed 1.38 pp year-over-year from 13.11%, remaining well below the national rate of 19.80%. Indirect auto exposure contracted to 4.50%, down 0.90 pp year-over-year, versus a national rate of 7.73%.