District of Columbia Credit Unions

Member engagement improved on both timeframes in Q2 2026. Member growth accelerated to 0.20% from 0.12% in Q1 2026 (QoQ, +0.08 pp), marking the second consecutive positive quarter after a negative reading of -0.14% in Q4 2025. Year-over-year, the turnaround is more dramatic: growth accelerated by 1.21 pp from -1.01% in Q2 2025. DC credit unions now stand 89 basis points above the national member growth rate of -0.69%, a notable distinction in an environment where the broader industry is losing members.

Profitability improved sharply on both timeframes. ROA surged to 0.78% in Q2 2026 from 0.20% in Q1 2026 (QoQ, +0.58 pp) and from 0.53% in Q2 2025 (YoY, +0.25 pp), though it remains 11 bps below the national benchmark of 0.89%. Net interest margin told a more mixed story: NIM decreased 0.07 pp to 3.47% quarter-over-quarter from 3.54% in Q1 2026, but increased 0.06 pp year-over-year from 3.41% in Q2 2025. At 3.47%, NIM trails the national average of 3.74% by 27 bps, signaling ongoing spread compression pressure.

Balance-sheet contraction deepened across all three growth metrics in Q2 2026. Asset growth decelerated to -2.37% from -1.57% in Q1 2026 (QoQ) and from +1.30% in Q2 2025 (YoY), marking the third consecutive negative quarter and landing 5.00 pp below the national rate of 2.63%. Deposit growth decelerated to -2.64% from -1.80% in Q1 2026, its third straight negative quarter. Loan growth, negative for five consecutive quarters, did improve — contracting at -2.58% versus -4.75% last quarter (QoQ) and -3.25% a year ago (YoY) — offering a tentative sign of stabilization.

The risk profile deteriorated modestly quarter-over-quarter but remained broadly stable year-over-year. Delinquency increased to 1.21% in Q2 2026 from 1.00% in Q1 2026 (QoQ, +0.21 pp), and sits 33 bps above the national benchmark of 0.88% — a persistent gap warranting attention. Year-over-year, delinquency is effectively stable at +0.02 pp from 1.19% in Q2 2025. Net worth strengthened to 12.08% from 11.59% in Q1 2026 (+0.50 pp QoQ) and is stable versus 12.07% in Q2 2025 (YoY, +0.01 pp), though it remains 1.73 pp below the national benchmark of 13.81%.

DC credit unions maintain a heavily mortgage-concentrated loan book. First mortgage concentration declined to 36.45% in Q2 2026, down 0.58 pp from 37.03% in Q1 2026 (QoQ) and down 2.02 pp from 38.47% in Q2 2025 (YoY), yet still far exceeds the national average of 22.22%. Certificate concentration edged up 0.51 pp quarter-over-quarter to 15.89% but fell 0.83 pp year-over-year from 16.72%, remaining below the national 20.02%. Indirect auto lending is negligible at 0.15% — up 0.05 pp QoQ and 0.08 pp YoY — versus the national 7.71%, reflecting a fundamentally different lending model.