Puerto Rico's four credit unions delivered standout profitability in Q2 2026, with ROA holding near 1.41% — 52 basis points above the national average of 0.89% and up sharply from 0.78% a year ago. Asset growth accelerated to 5.78%, outpacing the national rate of 2.63%. Yet membership contracted for a second consecutive quarter, falling -0.30% in Q2 2026 versus -0.12% in Q1 2026, a stark reversal from 3.83% growth a year prior. The divergence between financial strength and shrinking membership raises questions about long-term sustainability if deposit and loan pipelines depend on member expansion.
PR Credit Unions Post Record Profitability as Member Rolls Shrink for Second Straight Quarter
Key Insights
Year-over-Year Changes
Share Certificate Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
26.54% → 28.33%
(+1.79%)
Loan Growth (YoY) (Absolute)
▼
2025-Q2
→
2026-Q2
12.48% → 0.92%
(-11.56%)
Indirect Auto Concentration (%) (Absolute)
—
2025-Q2
→
2026-Q2
0.00% → 0.00%
(+0.00%)
Asset Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
2.24% → 5.78%
(+3.54%)
First Mortgage Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
7.73% → 10.04%
(+2.32%)
Quarter-over-Quarter Changes
Efficiency Ratio (Absolute)
▲
2026-Q1
→
2026-Q2
59.45% → 61.13%
(+1.68%)
Share Certificate Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
27.34% → 28.33%
(+0.99%)
Loan Growth (YoY) (Absolute)
▼
2026-Q1
→
2026-Q2
4.36% → 0.92%
(-3.44%)
Indirect Auto Concentration (%) (Absolute)
—
2026-Q1
→
2026-Q2
0.00% → 0.00%
(+0.00%)
Asset Growth (YoY) (Absolute)
▲
2026-Q1
→
2026-Q2
3.44% → 5.78%
(+2.34%)
Key Metrics
Return on Assets
1.41%
▲ YoY52 basis points above national
Net Interest Margin
4.86%
— YoY1.12 percentage points above national
Asset Growth
5.78%
▲ YoYMember Growth
-0.30%
Delinquency Rate
0.49%
▼ YoYNet Worth Ratio
12.84%
AMR Growth
0.53%
Deposit Growth
1.58%
Insufficient historical data for trend visualization
Loan Growth
0.92%
▼ YoYMember Engagement
Member Growth (YoY %)
Member engagement deteriorated further in Q2 2026, with membership growth decelerating to -0.30% from -0.12% in Q1 2026 — marking a second consecutive quarter of contraction since last growing at +2.30% in Q4 2025. Year-over-year, the swing is dramatic: membership stood at +3.83% in Q2 2025, making the current -0.30% a deceleration of 4.13 percentage points. The one silver lining is that PR credit unions still outperform the national benchmark of -0.69%, sitting 40 basis points above it, suggesting the contraction is less severe than the broader industry.
Profitability
Return on Assets (%)
Net Interest Margin (%)
Profitability remains a standout strength for PR credit unions. ROA was stable quarter-over-quarter at 1.41% in Q2 2026 versus 1.42% in Q1 2026, but the year-over-year story is compelling: ROA surged from 0.78% in Q2 2025, a gain of 0.63 percentage points, placing the cohort 52 basis points above the national benchmark of 0.89%. NIM held steady at 4.86%, essentially flat both QoQ (up just 1 bp from 4.85%) and YoY (down 1 bp from 4.88%), and remains 1.12 percentage points above the national 3.74%. The efficiency ratio edged up 1.68 pp QoQ to 61.13%, yet remains a robust 16.93 pp below the national 78.06%.
Growth
Asset Growth (YoY %)
Member Growth (YoY %)
Asset growth accelerated meaningfully in Q2 2026, reaching 5.78% — up from 3.44% in Q1 2026 (a QoQ acceleration of 2.34 pp) and from 2.24% in Q2 2025 (a YoY acceleration of 3.54 pp), now 3.15 pp above the national rate of 2.63%. This marks five consecutive quarters of positive asset growth since Q2 2025. Loan growth, however, decelerated sharply to 0.92% in Q2 2026 from 4.36% in Q1 2026 (down 3.44 pp QoQ) and from 12.48% in Q2 2025 (down 11.56 pp YoY), though it remains positive for a fifth straight quarter and 70 basis points above the national 0.22%.
Risk & Credit Quality
Delinquency Rate (%)
Net Worth Ratio (%)
The risk profile for PR credit unions is broadly stable to improving. Delinquency held flat at 0.49% in Q2 2026, essentially unchanged from 0.49% in Q1 2026, and improved from 0.59% in Q2 2025 — a year-over-year decrease of approximately 10 basis points. At 39 basis points below the national benchmark of 0.88%, credit quality remains a competitive advantage. Net worth strengthened to 12.84% in Q2 2026, up 0.34 pp from 12.50% in Q1 2026 and up 0.92 pp from 11.92% in Q2 2025, though it remains 97 basis points below the national benchmark of 13.81%.
Portfolio Mix
First Mortgage (%)
Indirect Auto (%)
Share Certificates (%)
PR credit unions' portfolio mix reflects a distinctive regional posture. First mortgage concentration rose to 10.04% in Q2 2026, up 2.32 pp from 7.73% in Q2 2025, yet remains far below the national benchmark of 22.22%. Indirect auto lending stays at 0.00%, unchanged QoQ and YoY, versus the national 7.71%, indicating a deliberate absence from that channel. Share certificate concentration climbed to 28.33% in Q2 2026, up 0.99 pp from 27.34% in Q1 2026 and up 1.79 pp from 26.54% in Q2 2025, well above the national 20.02%, signaling member preference for fixed-term savings.
Strategic Implications
- • Accelerating asset growth (5.78%) against shrinking membership (-0.30%) suggests PR credit unions are deepening wallet share per member rather than expanding their base — a strategy with finite runway.
- • The sharp deceleration in loan growth from 12.48% (Q2 2025) to 0.92% (Q2 2026) warrants monitoring; if it reflects weakening demand rather than tightened underwriting, future NIM compression could follow.
- • Certificate concentration at 28.33% — 8.31 pp above the national average — indicates a funding mix skewed toward higher-cost deposits, which could pressure margins if interest rates remain elevated.
- • With net worth at 12.84%, still 97 basis points below the national 13.81%, continued capital accumulation is essential before any significant balance sheet expansion or dividend strategy.
- • The complete absence of indirect auto lending (0.00% vs. national 7.71%) leaves a diversification lever unused; evaluating selective entry could support loan growth as organic demand moderates.
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Notable Patterns
How This Cohort Compares to National
Efficiency Ratio is 16.9pp below national
First Mortgage Share is 12.2pp below national
Certificate Pct is 8.3pp above national
Indirect Auto Pct is 7.7pp below national
Asset Growth (annual) is 3.2pp above national