Rhode Island Credit Unions

Member engagement deteriorated further in Q2 2026. Member growth decelerated to -1.23% from -0.80% in Q1 2026 (QoQ), and also worsened from -1.11% in Q2 2025 (YoY) — marking five consecutive quarters of negative member growth since Q2 2025, the last positive reading being +2.37% in Q1 2025. The cohort now sits 53 basis points below the national rate of -0.69%. Membership contraction at this pace raises structural questions about long-term loan and deposit volume, even as the balance sheet expands.

Profitability improved meaningfully on both timeframes. ROA increased to 0.62% in Q2 2026 from 0.38% in Q1 2026 — a gain of 24 basis points QoQ — and rose 16 basis points from 0.46% in Q2 2025 (YoY). NIM expanded to 3.11%, up 8 bps from 3.03% last quarter and up 23 bps from 2.88% a year ago. Despite the positive trajectory, RI credit unions remain 27 bps below the national ROA of 0.89% and 63 bps below the national NIM of 3.74%, indicating meaningful room for further improvement.

Balance sheet growth accelerated sharply in Q2 2026. Asset growth reached 3.14%, up from 2.39% in Q1 2026 (QoQ, +0.75 pp) and from 2.20% in Q2 2025 (YoY, +0.94 pp), now 51 basis points above the national benchmark of 2.63% — the ninth consecutive quarter of positive asset growth since Q2 2024. Loan growth also accelerated to 1.96% from 1.53% last quarter and 1.15% a year ago, running 1.75 percentage points above the national rate of 0.22%, with five consecutive quarters of positive loan growth.

The risk profile deteriorated in Q2 2026. Delinquency increased to 0.60% from 0.33% in Q1 2026 — a sharp 27 bp QoQ jump — and rose 14 bps from 0.46% in Q2 2025 (YoY). While still 28 basis points below the national benchmark of 0.88%, the pace of increase warrants attention. Net worth remained essentially stable QoQ at 12.56% (up just 2 bps from 12.54%), though it improved 12 bps from 12.44% a year ago; the cohort remains 1.25 percentage points below the national net worth ratio of 13.81%.

RI credit unions maintain a distinctly mortgage-heavy, certificate-rich portfolio. First mortgage concentration stood at 32.81% in Q2 2026 — up 14 bps QoQ from 32.67% but down 60 bps YoY from 33.41% — and far exceeds the national 22.22%. Indirect auto held nearly flat at 10.57%, stable both QoQ (-1 bp) and YoY (-2 bps), above the national 7.71%. Share certificate concentration eased to 26.96%, down 42 bps QoQ and 23 bps YoY from 27.20%, yet still well above the national 20.02%, reflecting member preference for rate-sensitive deposits.