Massachusetts Credit Unions

Member engagement remains the cohort's most pressing vulnerability. Member growth stood at -1.21% in Q2 2026, decelerating from -0.99% in Q1 2026 (QoQ) — marking five consecutive quarters of contraction since Q1 2025's last positive reading of +0.60%. On a year-over-year basis, the rate improved modestly by 7 basis points from -1.28% in Q2 2025, suggesting the pace of decline may be stabilizing, but the cohort still sits 51 basis points below the national average of -0.69%, underscoring a structural engagement deficit that demands strategic attention.

Profitability is trending in the right direction across both timeframes. ROA increased to 0.70% in Q2 2026 from 0.65% in Q1 2026 (QoQ, +5 bps) and from 0.58% in Q2 2025 (YoY, +12 bps), reflecting meaningful earnings improvement. Net interest margin held stable at 3.25%, essentially flat from 3.28% last quarter and 3.20% a year ago, with both changes within 4 basis points. The cohort remains 19 basis points below the national ROA of 0.89% and 49 basis points below the national NIM of 3.74%, leaving a clear performance gap to close.

Asset growth held steady at 2.37% in Q2 2026, virtually unchanged from 2.37% in Q1 2026 (QoQ, stable), and accelerated from 2.26% in Q2 2025 (YoY, +0.11 pp) — extending a positive streak now running eight consecutive quarters since Q3 2024. However, loan growth decelerated sharply, turning negative at -0.16% in Q2 2026 from 0.34% in Q1 2026 (QoQ, -0.50 pp) and from 1.20% in Q2 2025 (YoY, -1.36 pp). The cohort's loan growth now trails the national benchmark of 0.22% by 38 basis points, signaling weakening credit demand or tightening underwriting standards.

The risk profile showed mixed signals in Q2 2026. Delinquency increased to 0.72% from 0.55% in Q1 2026 (QoQ, +0.16 pp) and from 0.65% in Q2 2025 (YoY, +7 bps), a trend worth monitoring even as the cohort remains 16 basis points below the national benchmark of 0.88%. Offsetting this, the net worth ratio strengthened to 13.39% from 13.21% in Q1 2026 (QoQ, +0.18 pp) and from 12.97% in Q2 2025 (YoY, +0.42 pp), providing a solid capital cushion that remains 42 basis points below the national average of 13.81%.

MA credit unions carry a distinctly mortgage-heavy, certificate-funded profile that diverges sharply from national norms. First mortgage concentration rose to 37.70% in Q2 2026 from 37.44% in Q1 2026 (QoQ, +0.26 pp) and from 37.05% in Q2 2025 (YoY, +0.64 pp) — more than 15 percentage points above the national 22.22%. Share certificate concentration increased to 25.39% from 25.20% last quarter and 24.42% a year ago (YoY, +0.96 pp), well above the national 20.02%. Indirect auto exposure continued to shrink, falling to 2.37% — far below the national 7.71% — reflecting a deliberate or structural retreat from that segment.