New Jersey Credit Unions

Member engagement deteriorated on both timeframes in Q2 2026. Members-per-employee slipped to 347.68% from 355.00% in Q1 2026 (-2.06 pp QoQ), though it remains 7.31 pp above the national benchmark of 340.38%. Member growth decelerated further to -1.60% from -1.46% in Q1 2026, extending a negative streak now spanning nine consecutive quarters since Q2 2024. On a brighter year-over-year note, the -1.60% rate represents improvement from -2.10% in Q2 2025 (+0.50 pp YoY), suggesting the pace of membership loss is gradually moderating, but the trend remains deeply negative.

Profitability improved sharply across both comparisons in Q2 2026. ROA rose to 0.77% from 0.41% in Q1 2026 (+0.36 pp QoQ) and from 0.48% in Q2 2025 (+0.29 pp YoY), though NJ credit unions still trail the national 0.89% by 12 bps. NIM advanced to 3.77% from 3.71% in Q1 2026 (+6 bps QoQ) and from 3.63% in Q2 2025 (+0.15 pp YoY), now sitting 3 bps above the national benchmark of 3.74%. The NIM expansion signals improving spread income, providing a partial offset to ongoing loan contraction pressures.

Asset growth accelerated to 0.19% in Q2 2026 from -0.26% in Q1 2026 (+0.45 pp QoQ), returning to positive territory, though it is virtually unchanged from 0.18% in Q2 2025 (+0.015 pp YoY) and lags the national benchmark of 2.63% by 2.43 pp. Loan growth, negative for five consecutive quarters since Q2 2025, accelerated modestly to -1.47% from -2.06% in Q1 2026 (+0.59 pp QoQ) and from -1.89% in Q2 2025 (+0.42 pp YoY), remaining 1.69 pp below the national 0.22%. While the direction of improvement is encouraging, loan balances continue to shrink.

The risk profile worsened in Q2 2026 on the credit quality front while capital remained a clear strength. Delinquency rose to 1.56% from 1.33% in Q1 2026 (+0.23 pp QoQ) and from 1.33% in Q2 2025 (+0.24 pp YoY), now 69 bps above the national benchmark of 0.88% — a meaningful and widening gap. Conversely, net worth strengthened to 15.71% from 15.49% in Q1 2026 (+0.21 pp QoQ) and from 15.29% in Q2 2025 (+0.42 pp YoY), standing 1.90 pp above the national 13.81%, providing a substantial capital buffer against rising credit stress.

Portfolio composition shifted modestly in Q2 2026. Share certificates climbed to 14.77% from 14.46% in Q1 2026 (+0.31 pp QoQ) and from 13.53% in Q2 2025 (+1.24 pp YoY), reflecting continued member preference for rate-sensitive deposits, though still 5.25 pp below the national 20.02%. First mortgage concentration edged to 17.35% from 17.25% in Q1 2026 (+10 bps QoQ), essentially flat year-over-year (+0.02 pp), and trails the national 22.22% by nearly 5 pp. Indirect auto held near 1.05%, up 0.14 pp YoY but far below the national 7.71%, indicating limited exposure to that channel.