Hawaii Credit Unions

Member engagement remains a persistent weak spot for Hawaii credit unions. Membership contracted -0.14% in Q2 2026, essentially unchanged from -0.11% in Q1 2026 (QoQ) and -0.11% in Q2 2025 (YoY) — marking five consecutive quarters of negative member growth since Q2 2025, the last positive reading being +0.95% in Q1 2025. The STABLE direction on both comparisons signals the decline is not accelerating, but neither is it reversing. Notably, Hawaii's -0.14% contraction compares favorably to the national average of -0.69%, sitting 56 basis points above the industry benchmark.

Profitability is the clear bright spot in Q2 2026. ROA rose to 0.91%, up from 0.85% in Q1 2026 (+6 bps QoQ) and sharply higher than 0.66% in Q2 2025 (+25 bps YoY), placing Hawaii CUs 2 basis points above the national benchmark of 0.89%. NIM held essentially stable at 3.22%, edging up just 4 bps from 3.18% in Q1 2026, while improving 21 bps from 3.01% in Q2 2025. However, NIM remains 52 basis points below the national average of 3.74%, indicating continued margin pressure relative to peers nationally.

Asset growth decelerated modestly to 4.46% in Q2 2026, down from 4.75% in Q1 2026 (-0.29 pp QoQ) and from 4.65% in Q2 2025 (-0.19 pp YoY), yet this marks the ninth consecutive positive quarter since Q2 2024 and remains 1.83 percentage points above the national rate of 2.63%. Loan growth also decelerated, slipping to 0.86% from 0.93% in Q1 2026 (-0.07 pp QoQ) and sharply from 3.20% in Q2 2025 (-2.34 pp YoY), though it has stayed positive for five straight quarters and leads the national rate of 0.22% by 64 basis points.

Hawaii CUs present a largely stable risk profile in Q2 2026. Delinquency edged down to 0.87% from 0.90% in Q1 2026 (-3 bps QoQ), a STABLE move, and is just 5 bps higher than the 0.82% recorded in Q2 2025 (YoY), also classified as STABLE — sitting 1 basis point below the national benchmark of 0.88%. Net charge-offs ticked up 5 bps to 0.27% from 0.22% in Q1 2026, remaining well below the national 0.38%. The main concern is net worth, which decreased to 13.45% from 13.78% in Q1 2026 and from 13.64% in Q2 2025, now 36 bps below the national benchmark of 13.81%.

Hawaii CUs continue to carry a heavily mortgage-weighted loan portfolio. First mortgage concentration held at 31.88% in Q2 2026, up 0.30 pp from 31.58% in Q2 2025 (YoY), and sits nearly 9.66 percentage points above the national average of 22.22%. Indirect auto exposure declined to 4.79%, down 0.13 pp from 4.92% in Q1 2026 (QoQ) and 0.42 pp from 5.22% in Q2 2025 (YoY), remaining well below the national 7.71%. Share certificates surged to 25.03%, rising 0.60 pp from 24.43% in Q1 2026 and 2.18 pp from 22.85% in Q2 2025, exceeding the national certificate concentration of 20.02%.