Connecticut Credit Unions

Member engagement deteriorated further in Q2 2026, with member growth deepening to -2.37% — decelerating 0.24 pp from -2.13% in Q1 2026 and 0.64 pp from -1.73% in Q2 2025. This marks six consecutive quarters of negative membership growth since 2025-Q1, when the cohort last posted a positive reading of +1.03% in Q4 2024. The current rate sits 1.67 pp below the national benchmark of -0.69%, signaling that Connecticut credit unions are losing members at more than three times the national pace, a trend with compounding long-term revenue implications.

Profitability was the clear bright spot for Connecticut credit unions in Q2 2026. ROA increased to 0.94%, up 0.23 pp from 0.71% in Q1 2026 and up 0.26 pp from 0.68% in Q2 2025 — now 5 basis points above the national benchmark of 0.89%. Net interest margin held essentially stable quarter-over-quarter at 3.59% (up just 1 basis point from 3.58% in Q1 2026), while improving 6 basis points year-over-year from 3.53% in Q2 2025. NIM remains 15 basis points below the national average of 3.74%, leaving room for further income optimization.

Asset growth decelerated to 1.43% in Q2 2026 from 1.78% in Q1 2026 (down 0.34 pp QoQ), though it accelerated 0.17 pp year-over-year from 1.26% in Q2 2025 — extending a positive streak now nine consecutive quarters running since Q2 2024. The cohort still trails the national asset growth rate of 2.63% by 1.20 pp. Loan growth turned negative at -0.44% in Q2 2026, decelerating 0.48 pp from a near-flat 0.04% in Q1 2026, though it improved markedly from -1.28% in Q2 2025 (up 0.83 pp YoY), suggesting the loan contraction cycle may be gradually stabilizing.

The risk profile showed a mixed picture in Q2 2026. Delinquency increased to 0.88% from 0.69% in Q1 2026 (up 0.19 pp QoQ), though it improved 0.09 pp year-over-year from 0.97% in Q2 2025 — now exactly at the national benchmark of 0.88%. Charge-offs increased to 0.17% from 0.11% in Q1 2026 (up 0.06 pp), remaining well below the national rate of 0.38%. Net worth strengthened to 13.06%, up 0.35 pp from Q1 2026 and up 1.39 pp from 11.67% in Q2 2025, though it remains 75 basis points below the national benchmark of 13.81%.

First mortgage concentration rose to 20.72% in Q2 2026, up 0.24 pp from 20.48% in Q1 2026 and up 1.49 pp from 19.23% in Q2 2025, though still 1.50 pp below the national average of 22.22%. Indirect auto exposure continued shrinking, falling to 4.32% — down 1.11 pp year-over-year from 5.43% in Q2 2025 — and sits 3.39 pp below the national rate of 7.71%. Share certificate concentration climbed to 14.86%, up 0.37 pp from 14.50% in Q1 2026 and up 1.25 pp from 13.62% in Q2 2025, yet remains 5.16 pp below the national level of 20.02%.