North Carolina Credit Unions

Member engagement showed concerning deceleration with growth slowing to 0.08% in Q4 2025 from 0.56% in Q3 2025 and dramatically from 2.19% year-over-year. Despite remaining 77 basis points above the national benchmark of -0.69%, the sharp membership slowdown signals potential engagement challenges requiring strategic attention.

Profitability metrics remained robust with ROA stable quarter-over-quarter at 0.65% and up significantly from 0.44% year-over-year. NIM held steady at 4.01% quarterly while improving from 3.83% annually. Fee income increased both quarterly (+0.91 pp) and year-over-year (+5.61 pp), demonstrating strong revenue generation capabilities.

Growth momentum accelerated with assets expanding 2.17% from 1.30% quarter-over-quarter and turning positive from -0.47% year-over-year. Loan growth remained stable at 1.69% quarterly, outpacing the national benchmark by 1.17 percentage points. The positive asset growth trajectory indicates recovering expansion momentum.

Risk metrics showed mixed signals with delinquencies stable quarter-over-quarter at 1.26% but improved from 1.32% year-over-year. Net worth decreased to 13.47% from 14.23% quarterly yet increased from 13.32% annually. Delinquencies remain 36 basis points above national levels, requiring continued monitoring.

Portfolio composition shifted toward first mortgages at 30.72%, up 1.89 percentage points year-over-year and significantly above the national 21.97%. Certificate concentration increased to 21.68% from 20.67% annually. Indirect auto lending remained below national levels at 5.12% versus 7.78%.