Connecticut Credit Unions

Member engagement deteriorated significantly with membership declining 1.60% year-over-year, a sharp reversal from 5.94% growth in 2024-Q3. However, the quarterly trend showed modest improvement, with losses moderating from -1.73% in Q2 2025 to -1.60% in Q3 2025, suggesting potential stabilization despite remaining 99 basis points below the national benchmark.

Profitability metrics showed mixed signals in Q3 2025. ROA remained stable at 0.68% quarter-over-quarter but trails the national benchmark by 10 basis points. Net interest margin strengthened notably, increasing 10 basis points quarterly to 3.63% and expanding 17 basis points year-over-year from 3.45%, though still 10 basis points below national levels.

Growth momentum accelerated across all major categories in Q3 2025. Asset growth accelerated to 1.99% from 1.26% quarter-over-quarter, while loan growth improved significantly, accelerating from -1.28% to -0.22% quarterly. Deposit growth also accelerated from 1.49% to 1.78% quarter-over-quarter, though all metrics remain below national benchmarks by 41-55 basis points.

Risk metrics improved in Q3 2025 with delinquencies decreasing to 0.89% from 0.97% quarter-over-quarter, though remaining stable compared to 0.85% year-over-year. Net worth strengthened to 11.89% from 11.67% quarterly and held steady from 11.84% annually, but remains 1.79 percentage points below the national benchmark of 13.68%.

Portfolio composition shifted toward traditional lending in Q3 2025. First mortgage concentration increased to 19.93%, up 3.63 percentage points quarterly and 4.40 percentage points year-over-year. Certificate concentration rose to 14.45%, gaining 6.10 percentage points quarterly and 16.89 percentage points annually, while indirect auto lending declined 6.45 percentage points year-over-year to 5.32%.