New Jersey Credit Unions

Member engagement deteriorated on both timeframes in Q1 2026. Member growth decelerated to -1.46% from -1.18% in Q4 2025 (QoQ), and fell sharply from -0.29% in Q1 2025 (YoY) — a 1.18 pp worsening year-over-year. The cohort now sits 82 basis points below the national member growth rate of -0.65%, meaning NJ credit unions are losing members faster than the industry average. The accelerating membership decline raises serious questions about relevance and competitive positioning, particularly as loan and asset contraction compound the engagement shortfall.

Profitability delivered a mixed picture in Q1 2026. ROA decreased to 0.41% from 0.52% in Q4 2025, a QoQ decline of 0.11 pp, suggesting seasonal or cost pressures weighing on earnings. However, on a year-over-year basis, ROA increased by 0.06 pp from 0.35% in Q1 2025, indicating underlying improvement relative to the same period last year. NIM remained stable at 3.71% — up just 3 bps QoQ from 3.68%, and up 0.14 pp YoY from 3.58% — now 1 basis point above the national benchmark of 3.70%, a rare area of competitive parity for the cohort.

Growth metrics deteriorated across the board in Q1 2026. Asset growth decelerated to -0.26% from 0.72% in Q4 2025, a 0.98 pp QoQ swing into contraction, and worsened from 0.00% in Q1 2025 YoY — now 2.90 pp below the national rate of 2.64%. Loan growth decelerated further to -2.06% from -1.25% in Q4 2025, trailing the national benchmark of 0.31% by 2.37 pp. The deepening loan contraction, now in negative territory for at least two consecutive quarters, represents the most acute growth challenge facing NJ credit unions and signals potential revenue pressure ahead.

The risk profile showed divergent signals in Q1 2026. Delinquency decreased to 1.33% from 1.45% in Q4 2025 — a welcome 0.12 pp QoQ improvement — but increased 0.14 pp from 1.19% in Q1 2025, confirming a year-over-year deterioration. At 1.33%, delinquency remains 55 basis points above the national benchmark of 0.78%, a persistent and significant gap. Net worth decreased to 15.49% from 15.87% in Q4 2025, yet increased 0.49 pp from 15.00% in Q1 2025, and stands 1.88 pp above the national average of 13.61% — providing meaningful capital cushion against ongoing credit stress.

Portfolio composition shifted modestly in Q1 2026. First mortgage concentration increased to 17.25% from 17.14% in Q4 2025 (+0.11 pp QoQ), but decreased 0.52 pp YoY from 17.77% in Q1 2025 — and remains well below the national benchmark of 22.15%, indicating NJ CUs carry significantly less mortgage exposure. Certificate concentration held nearly flat QoQ at 14.46% versus 14.45% in Q4 2025, but climbed 0.91 pp YoY from 13.55%, suggesting members are rotating toward higher-yield deposits. Indirect auto concentration increased to 1.04% from 0.96% QoQ and from 0.89% YoY, though it remains far below the national rate of 7.73%.