Louisiana Credit Unions

Member engagement deteriorated sharply on a year-over-year basis. Member growth stood at -1.52% in Q1 2026, a deceleration of 3.84 pp from +2.32% in Q1 2025, marking a full reversal from growth to contraction. Against the national benchmark of -0.65%, LA credit unions trail by 87 basis points. On a QoQ basis, however, the picture marginally improved: the -1.52% rate accelerated by 0.18 pp from -1.69% in Q4 2025, suggesting the pace of member loss may be stabilizing, though the trend remains deeply negative.

Profitability for LA credit unions is under quiet but persistent pressure. ROA was essentially stable QoQ at 0.55% in Q1 2026, down just 0.02 pp from 0.56% in Q4 2025, but the year-over-year decline is more telling: ROA decreased 8 bps from 0.63% in Q1 2025, leaving the cohort 12 bps below the national benchmark of 0.67%. NIM decreased 8 bps QoQ from 4.21% in Q4 2025 to 4.13% in Q1 2026, and is down 5 bps from 4.18% a year ago — though at 4.13%, it remains 43 bps above the national average of 3.70%, providing a meaningful structural cushion.

Growth metrics across the board decelerated in Q1 2026. Asset growth slowed to 0.31% from 0.85% in Q4 2025 (QoQ) and from 4.35% in Q1 2025 (YoY), now 2.33 pp below the national 2.64%. Loan growth decelerated to -3.53% from -2.91% in Q4 2025, sitting 3.85 pp below the national 0.31%. Deposit growth nearly vanished, decelerating to 0.01% in Q1 2026 from 0.71% in Q4 2025 — 2.15 pp below the national 2.16%. The simultaneous contraction in loans and near-zero deposit growth points to a balance sheet under significant strain.

The risk profile offered the clearest improvement in Q1 2026. Delinquency decreased 48 bps QoQ from 1.65% in Q4 2025 to 1.17% in Q1 2026, and is also down 12 bps from 1.29% in Q1 2025 on a YoY basis — a consistent directional improvement. Despite this progress, the 1.17% rate remains 39 bps above the national benchmark of 0.78%, indicating elevated credit stress relative to peers. Net worth continued to strengthen, increasing 8 bps QoQ to 17.28% from 17.20% in Q4 2025 and up 76 bps from 16.52% in Q1 2025, standing 3.66 pp above the national 13.61%.

Portfolio composition shifted modestly in Q1 2026. First mortgage concentration increased 22 bps QoQ from 11.15% in Q4 2025 to 11.37%, and is nearly stable YoY (+5 bps from 11.32% in Q1 2025), but remains sharply below the national 22.15%, reflecting a structurally different lending emphasis. Certificate concentration decreased 38 bps QoQ from 15.23% in Q4 2025 to 14.86%, though it rose 99 bps YoY from 13.86% in Q1 2025, still trailing the national 19.80%. Indirect auto edged up 10 bps YoY to 5.07%, below the national 7.73%, suggesting limited reliance on dealer channels.