Illinois Credit Unions

Member engagement deteriorated sharply on a year-over-year basis, with member growth decelerating 4.26 pp from 3.79% in 2025-Q1 to -0.47% in 2026-Q1 — a shift from meaningful expansion to outright contraction. On a quarter-over-quarter basis, however, the trend improved, accelerating 0.55 pp from -1.02% in 2025-Q4 to -0.47% in 2026-Q1. Illinois CUs currently sit 17 bps above the national member growth rate of -0.65%, offering a modest competitive edge, but the YoY reversal raises questions about sustained member acquisition and retention strategies heading into mid-2026.

Profitability remained broadly stable across both timeframes. ROA held at 0.71% in 2026-Q1, essentially unchanged from 0.76% in both 2025-Q4 (QoQ change: -5 bps, stable) and 2025-Q1 (YoY change: -5 bps, stable), and sits 4 bps above the national benchmark of 0.67%. Net interest margin was similarly steady at 3.68%, up 3 bps from 3.65% in 2025-Q4 and down just 1 bp from 3.69% in 2025-Q1, landing 2 bps below the national 3.70%. While margins are resilient, the combination of negative loan growth and member contraction limits upside for earnings expansion.

Growth decelerated across the board in 2026-Q1. Asset growth slowed to 2.54%, down 0.48 pp from 3.02% in 2025-Q4 and down 0.61 pp from 3.15% in 2025-Q1, placing Illinois CUs 9 bps below the national rate of 2.64%. Loan growth deteriorated further, falling to -0.41% from -0.18% in 2025-Q4 — a deceleration of 0.23 pp — and now trails the national benchmark of 0.31% by 72 bps. Year-over-year loan growth data is unavailable for direct comparison, but the deepening contraction in 2026-Q1 underscores a persistent challenge in origination volume.

The risk profile of Illinois credit unions is mixed. Delinquency was stable QoQ, edging down 4 bps from 0.76% in 2025-Q4 to 0.73% in 2026-Q1, and remains 5 bps below the national benchmark of 0.78% — a favorable position. However, on a YoY basis, delinquency increased 0.12 pp from 0.60% in 2025-Q1, signaling a gradual credit quality erosion over the past year. Net worth remained strong at 14.59%, down a modest 7 bps QoQ from 14.66% but up 0.26 pp YoY from 14.33%, and stands 98 bps above the national 13.61%, providing a substantial capital buffer.

Illinois CUs continued shifting their portfolio mix in 2026-Q1. First mortgage concentration rose to 14.32%, up 0.13 pp from 14.18% in 2025-Q4 and up 0.47 pp from 13.85% in 2025-Q1, though it remains well below the national benchmark of 22.15%. Indirect auto exposure increased to 7.20%, up 0.06 pp QoQ from 7.14% and up 0.37 pp YoY from 6.83%, approaching but still trailing the national 7.73%. Share certificate concentration dipped slightly to 14.00% from 14.12% in 2025-Q4, but rose 0.94 pp YoY from 13.07%, reflecting member preference for fixed-rate savings instruments — still far below the national 19.80%.