Hawaii Credit Unions

Member engagement weakened as growth decelerated to -0.34% in Q3 2025 from -0.11% last quarter, though still outperforming the national decline of -0.61%. The year-over-year comparison shows a more concerning shift from positive 0.88% growth in Q3 2024 to current contraction, indicating mounting competitive pressures in Hawaii's financial services market.

Profitability strengthened significantly with ROA increasing to 0.81% from 0.66% quarter-over-quarter and surging from 0.50% year-over-year, now exceeding the national benchmark by 3 basis points. NIM improved to 3.08% from 3.01% last quarter and 2.80% a year ago, though remaining 64 basis points below national levels, suggesting room for further margin expansion.

Growth momentum accelerated with assets expanding 5.68% versus 4.65% last quarter, significantly outpacing the national rate of 2.54%. Deposit growth accelerated to 5.62% from 4.72% quarter-over-quarter, while loan growth decelerated to 2.22% from 3.20% last quarter, creating a favorable funding dynamic that supports continued expansion above national benchmarks.

Risk metrics showed mixed signals with delinquencies increasing to 0.89% from 0.82% last quarter but remaining stable year-over-year at 0.89%, slightly above the national rate of 0.85%. Net worth strengthened to 13.75% from 13.64% quarter-over-quarter and 13.55% year-over-year, maintaining a solid 7 basis point cushion above national levels.

Portfolio composition shifted toward certificates, rising to 23.49% from 22.85% last quarter and 21.31% a year ago, now 389 basis points above national levels. First mortgage concentration reached 31.73%, up from 30.85% year-over-year and well above the national 21.76%, while indirect auto exposure remained below national benchmarks at 5.10%.