Maryland Credit Unions

Member engagement for Maryland credit unions deteriorated on a year-over-year basis but showed modest sequential improvement in Q2 2026. Member growth registered -1.06%, marking the third consecutive negative quarter since 2025-Q4, when the cohort last posted a positive reading of +0.39% in 2025-Q3. Quarter-over-quarter, the pace of contraction accelerated by 0.26 pp from -1.32% in Q1 2026, a slight recovery in trajectory. Year-over-year, however, the picture is starker: member growth decelerated by 0.98 pp from -0.08% in Q2 2025, and the cohort now sits 36 basis points below the national benchmark of -0.69%.

Profitability was a clear bright spot for Maryland credit unions in Q2 2026. ROA increased to 0.71% from 0.54% in Q1 2026 (QoQ) and from 0.57% in Q2 2025 (YoY), representing gains of 0.17 pp and 0.14 pp respectively — the strongest profitability reading in recent quarters. The cohort nonetheless remains 17 basis points below the national ROA benchmark of 0.89%. Net interest margin held essentially flat at 3.44%, stable both quarter-over-quarter (+0.01 pp from 3.43%) and year-over-year (-0.02 pp from 3.46%), trailing the national NIM of 3.74% by 30 basis points.

Growth dynamics for Maryland credit unions weakened across the board in Q2 2026. Asset growth decelerated to 1.72% from 1.89% in Q1 2026 (QoQ) and from 1.90% in Q2 2025 (YoY), both representing a -0.17 pp pullback, though the cohort has maintained positive asset growth for nine consecutive quarters since 2024-Q2. More concerning, loan growth deepened to -2.06% — its second consecutive negative quarter since 2026-Q1 — deteriorating by 1.27 pp QoQ from -0.78% and by 1.72 pp YoY from -0.33%, leaving the cohort 2.27 percentage points below the national loan growth benchmark of 0.22%.

The risk profile for Maryland credit unions worsened in Q2 2026. Delinquency increased to 1.01% from 0.87% in Q1 2026 (+0.13 pp QoQ) and from 0.83% in Q2 2025 (+0.18 pp YoY), pushing the cohort 13 basis points above the national benchmark of 0.88%. Net worth remained essentially stable quarter-over-quarter at 12.76%, nearly unchanged from 12.77% in Q1 2026 (-0.01 pp), though it has improved meaningfully by 0.67 pp from 12.09% in Q2 2025. At 12.76%, net worth trails the national benchmark of 13.81% by 1.05 percentage points, leaving a meaningful capital cushion gap relative to peers.

Maryland credit unions continued to shift their portfolio mix toward first mortgages and certificates in Q2 2026. First mortgage concentration rose to 28.90%, up 0.98 pp from 27.92% in Q1 2026 and up 1.77 pp from 27.14% in Q2 2025, well above the national benchmark of 22.22%. Certificate concentration increased to 21.70%, up 0.64 pp QoQ from 21.05% and up 2.32 pp YoY from 19.38%, exceeding the national average of 20.02%. Indirect auto held nearly flat at 7.32%, up just 0.06 pp QoQ from 7.26% and essentially unchanged YoY (-0.01 pp from 7.33%), remaining slightly below the national 7.71%.