Mississippi Credit Unions

Member growth in 2026-Q2 reached 0.79%, marking the fourth consecutive positive quarter since 2025-Q3 — a meaningful reversal from the -0.41% reading in 2025-Q2 (up 1.20 pp year-over-year). However, the pace decelerated sharply from 1.68% in 2026-Q1, a quarter-over-quarter pullback of 0.89 pp. Encouragingly, MS credit unions outpace the national benchmark of -0.69% by 1.48 percentage points, suggesting member acquisition and retention remain a relative strength even as momentum cools heading into the second half of 2026.

Profitability surged in 2026-Q2, with ROA rising to 0.95% from 0.75% in 2026-Q1 — a 0.20 pp quarter-over-quarter gain — and up 0.19 pp from 0.76% in 2025-Q2, now 6 bps above the national benchmark of 0.89%. NIM also strengthened, increasing to 4.44% from 4.30% in 2026-Q1 (+0.14 pp) and from 4.33% a year ago (+0.11 pp), maintaining a commanding 70-bp advantage over the national average of 3.74%. The dual improvement in both return and margin signals a healthy earnings environment, though sustaining these gains amid rising delinquency will be the key test.

Asset growth decelerated to 1.99% in 2026-Q2, down 0.45 pp from 2.44% in 2026-Q1 and down 1.02 pp from 3.01% in 2025-Q2, falling 64 bps below the national benchmark of 2.63%. Despite slowing, this marks the ninth consecutive quarter of positive asset growth since 2024-Q2. Loan growth nearly stalled at 0.03% in 2026-Q2, decelerating sharply from 1.52% in 2026-Q1 (-1.49 pp) and from 0.28% a year ago (-0.26 pp), though it remains positive for a fifth straight quarter since 2025-Q2 and sits 19 bps below the national rate of 0.22%.

The risk profile deteriorated notably in 2026-Q2 as delinquency jumped 0.51 pp quarter-over-quarter to 1.38% — 51 bps above the national benchmark of 0.88%. On a year-over-year basis, delinquency was essentially stable, holding at 1.38% in both 2026-Q2 and 2025-Q2 (+0.002 pp). The offsetting bright spot is capital adequacy: net worth rose to 18.12% from 18.02% in 2026-Q1 (+0.10 pp) and from 17.23% in 2025-Q2 (+0.89 pp), sitting 4.31 percentage points above the national benchmark of 13.81% — a substantial cushion against potential credit losses ahead.

MS credit unions continue to hold a distinctly different portfolio composition than the national average. First mortgage concentration edged up 9 bps quarter-over-quarter to 8.49% in 2026-Q2 but fell 0.08 pp year-over-year from 8.57% in 2025-Q2 — far below the national benchmark of 22.22%. Indirect auto exposure dipped 0.06 pp from 2026-Q1 and 0.07 pp from 2025-Q2 to 2.36%, well under the national 7.71%. Certificate concentration increased 0.26 pp from 2026-Q1 and 0.59 pp year-over-year to 19.89%, nearly matching the national average of 20.02%, signaling members' growing preference for term deposits.