Tennessee Credit Unions

Member growth remained negative for a fifth consecutive quarter in 2026-Q2, registering -0.66% — an improvement from -0.92% in 2026-Q1 (QoQ acceleration of 0.27 pp) but a deterioration from -0.38% in 2025-Q2 (YoY deceleration of 0.28 pp). The last positive reading was +2.69% in 2025-Q1. On a relative basis, TN credit unions at -0.66% sit just 4 basis points above the national benchmark of -0.69%, suggesting the membership contraction trend is industry-wide but TN has not yet reversed course.

Profitability was the clear bright spot in 2026-Q2. ROA increased to 0.96% from 0.74% in 2026-Q1 (up 0.22 pp QoQ) and from 0.74% in 2025-Q2 (up 0.22 pp YoY), placing TN credit unions 8 bps above the national average of 0.89%. NIM was stable QoQ at 3.87% versus 3.83% in 2026-Q1, but increased 8 bps from 3.79% in 2025-Q2 — now 13 bps above the national benchmark of 3.74%. Together, these metrics signal a cohort generating strong returns relative to peers despite softening loan and member volumes.

Asset growth was stable QoQ at 1.86% in 2026-Q2 versus 1.87% in 2026-Q1, but decelerated meaningfully from 2.91% in 2025-Q2 — a YoY decline of 1.04 pp — and trails the national benchmark of 2.63% by 76 bps. Asset growth has nevertheless remained positive for nine consecutive quarters. Loan growth, negative for five straight quarters, accelerated modestly to -1.06% from -1.19% in 2026-Q1 (QoQ) and from -1.26% in 2025-Q2 (YoY), but remains 1.27 pp below the national rate of 0.22%, indicating persistent contraction in the loan book.

The risk picture is mixed in 2026-Q2. Delinquency increased to 0.83% from 0.66% in 2026-Q1 — a QoQ rise of 0.17 pp — though it was essentially stable versus 0.82% in 2025-Q2 (up just 0.01 pp YoY). TN credit unions remain 5 bps below the national delinquency benchmark of 0.88%, a modest but meaningful buffer. Offsetting credit concerns, net worth strengthened to 15.22% from 15.03% in 2026-Q1 (up 0.19 pp QoQ) and from 14.79% in 2025-Q2 (up 0.43 pp YoY), standing 1.41 pp above the national average of 13.81% — providing a substantial loss-absorption cushion.

First mortgage concentration rose to 21.79% in 2026-Q2, up 0.37 pp from 21.42% in 2026-Q1 and up 0.94 pp from 20.85% in 2025-Q2, approaching but still slightly below the national average of 22.22%. Indirect auto exposure edged down to 6.80%, stable QoQ from 6.83% and down 0.23 pp YoY from 7.03%, remaining below the national 7.71%. Share certificate concentration rose to 22.44% from 22.30% in 2026-Q1 and from 21.92% in 2025-Q2 — now 2.42 pp above the national average of 20.02%, reflecting elevated member preference for fixed-rate savings instruments.