Kentucky Credit Unions

Member engagement deteriorated significantly as growth decelerated to -2.21% in Q4 2025 from -0.87% last quarter and -0.70% a year ago, underperforming the national -0.69% rate by 152 basis points. The accelerating member loss trend suggests mounting competitive pressures in Kentucky's financial services market.

Profitability remained stable with ROA holding at 0.73% quarter-over-quarter and year-over-year, matching national benchmarks exactly. NIM showed modest improvement, rising 3 bps to 3.66% from last quarter and 9 bps from a year ago, though still trailing the national 3.72% by 7 basis points.

Growth momentum accelerated across key metrics with asset growth improving to 2.75% from 2.64% last quarter, while loan growth accelerated to -1.01% from -1.56% quarterly. However, asset growth decelerated significantly from 5.59% a year ago, and loan growth remains negative despite quarterly improvement.

Risk profile showed mixed signals as delinquencies increased 5 bps to 0.74% from last quarter but decreased 8 bps from 0.82% a year ago, remaining 16 bps below national levels. Net worth strengthened 16 bps quarterly to 13.81% but declined 55 bps year-over-year.

Portfolio composition shifted toward first mortgages, rising to 22.89% from 22.56% last quarter and 21.94% a year ago, exceeding the national 21.97%. Certificate concentration remained elevated at 22.36% versus the national 19.80%, while indirect auto holdings stayed flat at 7.68%.