Hawaii Credit Unions

Member engagement for Hawaii credit unions deteriorated on a year-over-year basis in Q1 2026. Member growth stands at -0.11%, essentially stable quarter-over-quarter from -0.10% in Q4 2025 (a change of just -0.005 pp), but representing a significant deceleration from the 0.95% growth recorded in Q1 2025 — a YoY swing of -1.06 pp. On the positive side, the cohort's -0.11% rate still outperforms the national average of -0.65% by 54 basis points, suggesting Hawaii CUs are retaining members better than most peers despite the downward trend.

Profitability improved meaningfully in Q1 2026. ROA increased to 0.85% from 0.75% in Q4 2025 — a gain of 0.10 pp quarter-over-quarter — and is up 0.08 pp from 0.78% in Q1 2025, placing Hawaii CUs 18 bps above the national benchmark of 0.67%. NIM also expanded, rising to 3.18% from 3.06% in Q4 2025 and from 2.98% in Q1 2025, a 0.20 pp year-over-year improvement. However, at 3.18%, NIM remains 52 bps below the national average of 3.70%, indicating meaningful room for margin improvement relative to peers.

Growth momentum for Hawaii credit unions decelerated in Q1 2026 but remains above national levels. Asset growth slowed to 4.75% from 5.59% in Q4 2025 (-0.83 pp QoQ) and from 7.71% in Q1 2025 (-2.96 pp YoY), though it still outpaces the national rate of 2.64% by 2.11 pp. Loan growth decelerated to 0.93% from 1.42% in Q4 2025 (-0.49 pp QoQ), exceeding the national 0.31% by 61 basis points. The consistent deceleration across both asset and loan growth warrants monitoring heading into the remainder of 2026.

The risk profile for Hawaii credit unions worsened in Q1 2026. Delinquency increased to 0.90% from 0.74% in Q4 2025 (+0.16 pp QoQ) and from 0.60% in Q1 2025 (+0.29 pp YoY), now sitting 12 bps above the national benchmark of 0.78%. This upward trajectory over four consecutive quarters is a concern. Net worth, however, provides a meaningful buffer: at 13.78%, it is essentially stable quarter-over-quarter (+0.02 pp from 13.75% in Q4 2025), up 0.66 pp from 13.11% in Q1 2025, and 16 bps above the national average of 13.61%.

Hawaii CUs' portfolio mix shifted modestly in Q1 2026. First mortgage concentration held near-steady at 31.68%, essentially unchanged from 31.69% in Q4 2025 (-0.01 pp QoQ) but up 0.18 pp from 31.51% in Q1 2025 — well above the national 22.15%. Certificate concentration rose to 24.43%, up 0.32 pp from Q4 2025 and up 1.95 pp from 22.47% in Q1 2025, exceeding the national 19.80%. Indirect auto continued its retreat, falling to 4.92% from 5.03% in Q4 2025 (-0.11 pp QoQ) and from 5.21% in Q1 2025 (-0.29 pp YoY), remaining below the national 7.73%.