Indiana Credit Unions

Member engagement deteriorated further in 2026-Q1, with member growth sliding to -1.26% — a deceleration of 0.05 pp from -1.21% in Q4 2025 and a sharp 1.05 pp pullback from -0.21% in 2025-Q1. Indiana CUs now trail the national member growth rate of -0.65% by 61 basis points, the widest gap in recent periods. The accelerating membership contraction signals that Indiana institutions are losing competitive ground in member acquisition and retention, a structural challenge that could weigh on future revenue even as near-term profitability holds.

Profitability in 2026-Q1 presents a split picture. ROA decreased to 0.73% from 0.90% in Q4 2025 — a sequential drop of 0.17 pp consistent with typical first-quarter seasonality — yet improved 8 bps from 0.65% in 2025-Q1, placing Indiana CUs 6 bps above the national 0.67% benchmark. NIM similarly decreased 0.08 pp quarter-over-quarter to 3.73% but gained 0.14 pp year-over-year from 3.60%, sitting 3 bps above the national 3.70%. The annual trajectory reflects genuine margin recovery, though the sequential retreat warrants monitoring heading into Q2 2026.

Asset growth decelerated to 2.91% in 2026-Q1 from 3.28% in Q4 2025 (-0.37 pp QoQ) and from 4.21% in 2025-Q1 (-1.30 pp YoY), though it still outpaces the national 2.64% by 27 bps. Loan growth also decelerated, slipping to 1.28% from 1.52% in Q4 2025 (-0.24 pp), and remains well ahead of the national 0.31% by 97 bps — a meaningful competitive advantage. While both growth rates are trending lower, they remain positive and above national norms, suggesting Indiana CUs are growing more slowly but still outperforming peers.

The risk profile for Indiana CUs showed partial improvement in 2026-Q1. Delinquency decreased 0.13 pp quarter-over-quarter to 0.92% from 1.04% in Q4 2025 — a welcome sequential relief — but increased 0.13 pp year-over-year from 0.79% in 2025-Q1, leaving Indiana 14 bps above the national 0.78% benchmark. Net worth decreased to 13.43% from 13.83% in Q4 2025 (-0.40 pp) but improved 0.47 pp from 12.95% in 2025-Q1, though it remains 19 bps below the national 13.61%. The annual capital build is encouraging, but delinquency persistence above national norms warrants vigilance.

Indiana CUs shifted their portfolio mix modestly in 2026-Q1. First mortgage concentration edged up to 20.90% from 20.66% in Q4 2025 (+0.24 pp QoQ) and from 20.00% in 2025-Q1 (+0.90 pp YoY), though still trailing the national 22.15%. Indirect auto concentration continued to decline, falling to 10.44% from 10.71% in Q4 2025 (-0.27 pp QoQ) and from 11.01% a year ago (-0.57 pp YoY), yet remains elevated versus the national 7.73%. Certificate concentration dipped to 18.94% from 19.26% in Q4 2025 but is up 1.24 pp year-over-year, approaching but still below the national 19.80%.