North Carolina Credit Unions

Member engagement deteriorated markedly in 2026-Q1. Member growth decelerated to -0.70%, down 0.78 pp from the already-thin 0.08% posted in 2025-Q4, and a steep 2.63 pp decline from the 1.93% growth recorded in 2025-Q1. The cohort now sits 5 basis points below the national benchmark of -0.65%, meaning NC credit unions are losing members at a slightly faster pace than the industry overall. The reversal from positive to negative territory over a single year signals a structural headwind in member acquisition and retention that warrants urgent strategic attention.

Profitability presents a mixed picture in 2026-Q1. ROA decreased 7 bps quarter-over-quarter, falling from 0.65% in 2025-Q4 to 0.58%, leaving NC credit unions 9 bps below the national 0.67%. However, on a year-over-year basis, ROA increased 0.17 pp from 0.41% in 2025-Q1, reflecting meaningful recovery over the past year. NIM decreased from 4.01% in 2025-Q4 to 3.90% in 2026-Q1, though it remained essentially stable year-over-year from 3.88% in 2025-Q1 and continues to outpace the national benchmark of 3.70% by 20 basis points — a competitive advantage worth preserving.

Asset growth decelerated from 2.17% in 2025-Q4 to 1.60% in 2026-Q1, falling 1.04 percentage points below the national benchmark of 2.64%. Year-over-year, however, the picture is more encouraging: asset growth accelerated sharply from just 0.19% in 2025-Q1, a gain of 1.40 pp. Loan growth also decelerated quarter-over-quarter, slipping from 1.69% in 2025-Q4 to 0.70% in 2026-Q1, though it still outpaces the national rate of 0.31% by 39 basis points. The near-term deceleration in both metrics warrants monitoring, even as the year-over-year trajectory remains constructive.

The risk profile improved modestly in 2026-Q1. Delinquency decreased from 1.26% in 2025-Q4 to 0.95% — a meaningful 0.30 pp quarterly improvement — and was essentially stable year-over-year, down just 4 bps from 1.00% in 2025-Q1. Despite the improvement, the cohort's 0.95% delinquency rate remains 18 basis points above the national benchmark of 0.78%, indicating elevated credit risk relative to peers. Net worth decreased slightly from 13.47% in 2025-Q4 to 13.36%, and is down 0.24 pp from 13.59% in 2025-Q1, now 26 bps below the national 13.61% — a gradual capital erosion that bears watching.

NC credit unions continued shifting toward first mortgage lending, with concentration rising to 31.33% in 2026-Q1 from 30.72% in 2025-Q4 (QoQ +0.60 pp) and 29.31% in 2025-Q1 (YoY +2.01 pp) — far exceeding the national benchmark of 22.15%. Indirect auto concentration declined to 4.91% from 5.12% in 2025-Q4 and 5.36% in 2025-Q1, remaining well below the national 7.73%. Share certificate concentration eased to 21.20% from 21.68% in 2025-Q4, though it rose 0.55 pp year-over-year from 20.64%, sitting modestly above the national 19.80% — reflecting continued member preference for fixed-rate deposit products.