South Carolina Credit Unions

Member engagement for SC credit unions turned a meaningful corner in 2026-Q1. Member growth accelerated to 0.03% from -0.26% in 2025-Q4 — a gain of 0.30 pp quarter-over-quarter — and surged 1.05 pp from -1.01% recorded in 2025-Q1. This places SC credit unions 68 basis points above the national average of -0.65%, a standout position in an industry where membership contraction remains the norm. The trajectory from negative to near-flat growth reflects a sustained recovery, though sustaining positive membership momentum will require continued competitive positioning on rates and services.

Profitability for SC credit unions declined in 2026-Q1 despite remaining above national benchmarks. ROA decreased to 0.80% from 0.98% in 2025-Q4 (down 0.18 pp QoQ) and from 0.96% in 2025-Q1 (down 0.16 pp YoY), though it still sits 13 bps above the national 0.67%. NIM decreased to 4.14% from 4.30% in 2025-Q4 (down 0.16 pp QoQ), though it is effectively stable year-over-year versus 4.16% in 2025-Q1 (down just 2 bps), and remains 44 bps above the national 3.70%. Margin compression is the primary profitability headwind heading into mid-2026.

SC credit unions demonstrated broadening growth momentum in 2026-Q1. Asset growth accelerated to 2.98% from 2.81% in 2025-Q4 (up 0.17 pp QoQ) and from 1.53% in 2025-Q1 (up 1.45 pp YoY), exceeding the national benchmark of 2.64% by 34 bps. Loan growth held essentially stable at 1.78% versus 1.81% in 2025-Q4 (down just 3 bps), a near-flat reading that nonetheless outpaces the national 0.31% by 1.47 percentage points — a substantial gap. Year-over-year loan growth comparisons are unavailable, but the current pace signals sustained lending demand well above the national trend.

The risk profile for SC credit unions is mixed but manageable in 2026-Q1. Delinquency decreased sharply to 0.74% from 0.94% in 2025-Q4 (down 0.20 pp QoQ), a meaningful near-term improvement that places SC credit unions 4 bps below the national 0.78%. However, on a year-over-year basis, delinquency increased from 0.63% in 2025-Q1 (up 0.11 pp YoY), signaling a longer-term credit quality drift worth monitoring. Net worth decreased modestly to 14.68% from 14.79% in 2025-Q4 (down 0.10 pp QoQ) but increased from 14.19% in 2025-Q1 (up 0.49 pp YoY), maintaining a strong 1.07 pp cushion above the national 13.61%.

Portfolio composition for SC credit unions shifted modestly but meaningfully in 2026-Q1. First mortgage concentration increased to 18.00% from 17.75% in 2025-Q4 (up 0.25 pp QoQ) and from 17.30% in 2025-Q1 (up 0.70 pp YoY), though it remains well below the national 22.15%, suggesting room for mortgage growth. Indirect auto concentration edged down 0.19 pp year-over-year to 5.87%, trailing the national 7.73%. Share certificate concentration increased to 17.95% from 17.77% in 2025-Q4 (up 0.18 pp QoQ) and from 16.81% in 2025-Q1 (up 1.14 pp YoY), reflecting a deposit mix shift toward higher-cost term funding that is compressing NIM.