Massachusetts Credit Unions

Member engagement declined with membership growth decelerating to -1.45% in Q3 2025 from -1.28% in Q2 2025, significantly underperforming the national benchmark of -0.61%. Year-over-year data shows persistent membership challenges, indicating fundamental engagement issues requiring strategic intervention to reverse the accelerating membership decline trend.

Profitability improved across key metrics with ROA increasing to 0.66% from 0.58% quarter-over-quarter and 0.57% year-over-year. Net interest margin remained stable at 3.25% from 3.20% last quarter while showing year-over-year improvement from 3.16%. Despite gains, performance trails national benchmarks with ROA 12 basis points and NIM 47 basis points below industry averages.

Growth momentum accelerated significantly with asset growth reaching 2.73% from 2.26% quarter-over-quarter, exceeding the national benchmark by 19 basis points. Deposit growth accelerated to 2.93% from 2.33% last quarter, outpacing national performance by 61 basis points. Loan growth remained stable at 1.25%, substantially above the national rate of 0.20%.

Risk profile remained stable with delinquencies holding steady at 0.64% quarter-over-quarter and improving from 0.74% year-over-year, performing 20 basis points better than the national rate of 0.85%. Net worth ratio strengthened to 13.18% from 12.97% last quarter and 12.94% year-over-year, though remaining 50 basis points below national levels.

Portfolio composition shifted toward traditional products with certificate concentrations increasing to 24.83% from 24.42% quarter-over-quarter and 22.81% year-over-year, exceeding national levels by 523 basis points. First mortgage concentrations remained elevated at 37.00% versus 21.76% nationally. Indirect auto lending stayed minimal at 2.56%, well below the 7.90% national average.