Maryland Credit Unions

Member engagement deteriorated sharply on a year-over-year basis. Member growth stood at -1.32% in Q1 2026, a severe deceleration of 3.52 percentage points from +2.20% in Q1 2025, and sits 68 basis points below the national rate of -0.65%. On a quarter-over-quarter basis, the trend modestly accelerated by 0.12 pp from -1.44% in Q4 2025, suggesting the pace of member attrition may be stabilizing — but the cohort has not yet reversed course. Retaining and reactivating members must become a strategic priority before contraction becomes entrenched.

Profitability weakened quarter-over-quarter but held roughly steady year-over-year. ROA declined to 0.54% in Q1 2026 from 0.66% in Q4 2025, a decrease of 0.12 pp, and remains 13 basis points below the national benchmark of 0.67%. Year-over-year, ROA is effectively stable, edging up just 3 basis points from 0.51% in Q1 2025. NIM followed a similar pattern, decreasing 0.11 pp to 3.43% from 3.54% in Q4 2025, while remaining stable versus 3.41% a year ago — and trailing the national NIM of 3.70% by 27 basis points. Margin compression is the dominant near-term earnings risk.

Growth dynamics were mixed in Q1 2026. Asset growth decelerated to 1.89% from 2.67% in Q4 2025 (-0.78 pp QoQ), yet accelerated compared to 1.39% in Q1 2025 (+0.50 pp YoY), leaving the cohort 75 basis points below the national 2.64%. Loan growth decelerated sharply, falling to -0.78% from +0.62% in Q4 2025, now 1.10 percentage points below the national 0.31% — a meaningful contraction. Deposit growth also decelerated to 1.13% from 1.71% in Q4 2025, trailing the national 2.16% by 1.03 percentage points. Loan demand weakness is the most acute growth concern.

The risk profile showed a split picture in Q1 2026. Delinquency decreased to 0.87% from 1.07% in Q4 2025 (-0.19 pp QoQ), a welcome improvement, but increased 0.13 pp from 0.75% in Q1 2025 on a year-over-year basis, leaving the cohort 10 basis points above the national 0.78%. Net worth increased to 12.77% from 12.65% in Q4 2025 and rose 0.53 pp from 12.24% in Q1 2025, demonstrating consistent capital accumulation — though the cohort remains 84 basis points below the national 13.61%. Capital strength is building, but credit quality trends warrant continued monitoring.

Portfolio composition shifted notably over the past year. First mortgage concentration rose to 27.92% in Q1 2026, up 1.58 pp from 26.34% in Q1 2025 and up 0.72 pp from 27.20% in Q4 2025, well above the national 22.15%. Certificate concentration climbed to 21.05%, up 1.91 pp year-over-year from 19.14% and up 0.61 pp from 20.44% in Q4 2025, exceeding the national 19.80%. Indirect auto concentration remained essentially stable at 7.26%, up just 4 basis points year-over-year and essentially flat QoQ, slightly below the national 7.73%. The cohort is increasingly concentrated in longer-duration assets and rate-sensitive liabilities.