Pennsylvania Credit Unions

Member engagement delivered a mixed signal in 2026-Q1. On a quarter-over-quarter basis, membership growth accelerated from -1.33% in 2025-Q4 to -0.88% in 2026-Q1, a 0.44 pp improvement suggesting the pace of attrition is moderating. However, the year-over-year picture is starkly negative: membership decelerated by 3.13 pp from 2.24% growth in 2025-Q1 to -0.88% contraction now. Pennsylvania CUs currently sit 24 basis points below the national member growth rate of -0.65%, meaning the state is losing members faster than the industry average. Reversing this trajectory will require targeted acquisition and retention strategies.

Profitability in 2026-Q1 presents a nuanced picture. ROA decreased to 0.79% from 0.87% in 2025-Q4, a quarter-over-quarter decline of 8 basis points — a meaningful sequential step down. Year-over-year, however, ROA is essentially stable, edging up just 1 basis point from 0.78% in 2025-Q1. Critically, Pennsylvania CUs maintain an 11-basis-point advantage over the national ROA of 0.67%. NIM was stable quarter-over-quarter, dipping just 2 basis points to 3.47% from 3.50% in 2025-Q4, while improving 8 basis points year-over-year from 3.39% in 2025-Q1 — though NIM remains 23 bps below the national 3.70%.

Growth momentum decelerated across both assets and loans in 2026-Q1. Asset growth slowed to 2.57% from 3.03% in 2025-Q4 (down 0.46 pp QoQ) and has decelerated sharply from 5.74% in 2025-Q1 (down 3.17 pp YoY), now sitting 7 basis points below the national 2.64%. Loan growth deteriorated further, falling to -1.70% from -1.26% in 2025-Q4, a 0.44 pp deceleration quarter-over-quarter, and trails the national benchmark of 0.31% by 2.01 percentage points. The deepening loan contraction is the most acute growth concern, as negative balances compress future interest income and limit earnings diversification.

The risk profile for Pennsylvania CUs showed modest improvement quarter-over-quarter but remains broadly stable year-over-year. Delinquency decreased to 0.82% in 2026-Q1 from 0.92% in 2025-Q4, a 0.10 pp improvement — a welcome sequential development. Year-over-year, delinquency is essentially stable, rising just 1 basis point from 0.81% in 2025-Q1, and sits 4 basis points above the national benchmark of 0.78%. Net worth decreased slightly to 14.66% from 14.75% in 2025-Q4 (down 9 bps QoQ), but has increased 0.53 pp from 14.13% in 2025-Q1, maintaining a strong 1.05-percentage-point cushion above the national 13.61%.

Portfolio composition shifted modestly in 2026-Q1. First mortgage concentration increased to 20.79%, up 0.09 pp from 20.70% in 2025-Q4 and up 0.63 pp from 20.16% in 2025-Q1, though it remains 1.36 percentage points below the national 22.15%. Indirect auto exposure grew to 8.27%, up 0.13 pp QoQ and 0.20 pp YoY, now 54 basis points above the national 7.73%. Share certificate concentration eased slightly to 15.44% from 15.53% in 2025-Q4 (down 9 bps QoQ), but is up 0.70 pp from 14.74% in 2025-Q1 — and remains 4.36 percentage points below the national 19.80%, indicating comparatively lower reliance on rate-sensitive deposits.