Delaware Credit Unions

Member engagement remains under pressure in Q2 2026, with member growth holding negative for a second consecutive quarter at -0.28%, after last turning positive in Q4 2025 at +0.06%. Quarter-over-quarter, however, the pace of attrition accelerated meaningfully — improving from -0.84% in Q1 2026 to -0.28% in Q2 2026, a gain of 0.57 pp. Year-over-year, the trend also accelerated modestly, up 0.10 pp from -0.37% in Q2 2025. Notably, Delaware CUs outperform the national member growth rate of -0.69% by 42 basis points, suggesting the cohort is retaining members better than the broader industry despite ongoing contraction.

Profitability staged a strong recovery in Q2 2026. ROA increased to 0.61% from 0.28% in Q1 2026 — a gain of 0.33 pp quarter-over-quarter — and rose 0.19 pp year-over-year from 0.42% in Q2 2025. Despite this improvement, Delaware CUs remain 27 bps below the national ROA of 0.89%. Net interest margin held essentially stable quarter-over-quarter at 3.50%, up just 0.03 pp from 3.47% in Q1 2026, while posting a more meaningful 0.19 pp increase year-over-year from 3.32% in Q2 2025. NIM trails the national 3.74% by 24 bps, indicating continued margin compression relative to peers.

Asset growth decelerated sharply in Q2 2026, slowing to 0.30% from 2.03% in Q1 2026 — a drop of 1.73 pp — though it marks the fourth consecutive quarter of positive asset growth since Q3 2025, recovering from -1.40% in Q2 2025, a year-over-year acceleration of 1.70 pp. The cohort trails the national asset growth rate of 2.63% by 2.33 pp. The more alarming signal is loan growth, which decelerated to -4.43% in Q2 2026 from +1.74% in Q1 2026 — a 6.17 pp swing — and reversed sharply from +1.94% in Q2 2025, now running 4.65 pp below the national +0.22%.

The risk profile presents a mixed picture in Q2 2026. Delinquency increased to 1.68% from 1.53% in Q1 2026, a rise of 0.15 pp quarter-over-quarter, and remains a significant concern at 81 bps above the national benchmark of 0.88%. Year-over-year, however, delinquency decreased 0.11 pp from 1.79% in Q2 2025, indicating gradual credit improvement over the longer horizon. Net worth increased to 13.66% from 13.50% in Q1 2026 — up 0.16 pp — but has declined 1.02 pp from 14.68% in Q2 2025, now sitting 15 bps below the national 13.81%, narrowing the capital cushion meaningfully over the past year.

Delaware CUs continued shifting their portfolio mix in Q2 2026. First mortgage concentration reached 18.74%, up 2.40 pp year-over-year from 16.35% in Q2 2025, and essentially stable quarter-over-quarter from 18.70% in Q1 2026 (+0.04 pp). The cohort remains 3.48 pp below the national first mortgage share of 22.22%. Indirect auto concentration declined to 7.07%, down 0.32 pp from Q1 2026 and down 1.06 pp year-over-year from 8.13% in Q2 2025, now slightly below the national 7.71%. Share certificates rose modestly to 13.39%, up 0.94 pp year-over-year, but trail the national 20.02% by a wide 6.63 pp margin.