Massachusetts Credit Unions

Member engagement deteriorated meaningfully over the past year. Member growth held stable quarter-over-quarter at -0.99% versus -0.96% in 2025-Q4 — a change of just -0.04 pp — but the year-over-year picture is stark: growth decelerated 1.59 pp from a positive 0.60% in 2025-Q1 to -0.99% in 2026-Q1. The cohort now trails the national benchmark of -0.65% by 35 basis points. Massachusetts credit unions are losing members at a faster pace than the broader industry, raising questions about value proposition and competitive positioning against regional banks and fintechs.

Profitability signals are cautiously encouraging. ROA was stable at 0.65% in 2026-Q1, essentially unchanged from 0.64% in 2025-Q4, but marks a meaningful 0.14 pp improvement from 0.51% in 2025-Q1 — a strong year-over-year recovery. At 3 bps below the national 0.67%, the gap is narrow. NIM drove much of the improvement, increasing 5 bps QoQ from 3.22% to 3.28% and 10 bps YoY from 3.18%, though it remains 42 bps below the national 3.70%. Sustained NIM expansion will be critical to closing that spread gap.

Balance sheet growth decelerated on a quarterly basis but shows real year-over-year momentum. Asset growth slowed to 2.37% in 2026-Q1 from 2.91% in 2025-Q4 — a deceleration of 0.54 pp — yet accelerated 0.82 pp versus 1.55% in 2025-Q1, keeping the cohort 27 bps below the national 2.64%. Loan growth similarly decelerated, falling to 0.34% from 0.91% in 2025-Q4, a 0.57 pp drop, though it edges 3 bps above the national 0.31%. The QoQ slowdown warrants monitoring, particularly given the shrinking membership base constraining organic loan demand.

The risk profile is a genuine bright spot. Delinquency decreased to 0.55% in 2026-Q1 from 0.66% in 2025-Q4 — a 0.10 pp improvement — and held essentially stable year-over-year, up just 0.01 pp from 0.54% in 2025-Q1. At 22 bps below the national 0.78%, Massachusetts credit unions maintain a notably cleaner loan book than the industry average. Net worth strengthened further, rising 0.06 pp QoQ to 13.21% and 0.41 pp YoY from 12.80%, though it remains 41 bps below the national 13.61%. Capital and credit quality together provide meaningful cushion.

Portfolio composition reflects a conservative, mortgage-heavy posture. First mortgage concentration held nearly stable QoQ — up just 0.05 pp from 37.39% in 2025-Q4 to 37.44% in 2026-Q1 — and increased 0.39 pp year-over-year from 37.05%, sitting dramatically above the national 22.15%. Certificate share rose 0.22 pp QoQ and 1.57 pp YoY to 25.20%, well above the national 19.80%, signaling member preference for rate-sensitive deposits. Indirect auto continued its retreat, down 0.07 pp QoQ and 0.53 pp YoY to 2.35%, far below the national 7.73%, reflecting a deliberate or structural underweight in that channel.