Texas Credit Unions

Member engagement deteriorated further in Q2 2026, with member growth decelerating to -1.25% from -0.96% in Q2 2026 — marking the fifth consecutive quarter of negative growth since Q1 2025, when membership last expanded at +1.73%. Year-over-year, the decline is stark: member growth fell 1.21 percentage points from -0.05% in Q2 2025. Texas credit unions now trail the national member growth rate of -0.69% by 56 basis points. The sustained contraction raises questions about whether loan and deposit attrition will follow membership losses into 2026 and beyond.

Profitability rebounded sharply in Q2 2026, with ROA increasing 31 basis points quarter-over-quarter to 0.87%, up from 0.56% in Q1 2026 and 16 basis points above the 0.71% recorded in Q2 2025 — now just 1 basis point shy of the national benchmark of 0.89%. NIM increased 5 basis points QoQ to 3.89%, comfortably 15 basis points above the national 3.74%, and was essentially stable year-over-year, up just 1 basis point from 3.88% in Q2 2025. The earnings picture is the cohort's strongest in recent quarters, though it rests on a shrinking membership base.

Asset growth remained stable in Q2 2026 at 1.72%, nearly unchanged from 1.75% in Q1 2026 (-3 bps QoQ), but accelerated meaningfully from 1.07% in Q2 2025 (+0.66 pp YoY) — extending a positive streak now nine consecutive quarters long since Q2 2024. However, loan growth continued to decelerate, falling to -1.50% in Q2 2026 from -1.26% in Q1 2026 (-0.24 pp QoQ) and from -1.45% in Q2 2025 (-5 bps YoY), marking five straight quarters of contraction and lagging the national benchmark of +0.22% by 1.72 percentage points.

The risk profile showed modest deterioration in Q2 2026. Delinquency increased 6 basis points QoQ to 0.83% from 0.77% in Q1 2026, though the year-over-year change was stable, up just 3 basis points from 0.80% in Q2 2025. Texas credit unions remain 4 basis points below the national delinquency benchmark of 0.88%, a relative positive. Capital strength is a clear bright spot: the net worth ratio increased to 15.31% in Q2 2026, up 33 basis points QoQ from 14.98% and 58 basis points YoY from 14.73%, sitting 1.50 percentage points above the national benchmark of 13.81%.

Portfolio composition shifted modestly in Q2 2026. Share certificates rose to 21.56%, up 0.22 pp QoQ from 21.34% in Q1 2026 and up 1.34 pp YoY from 20.23% in Q2 2025, now exceeding the national benchmark of 20.02% — signaling a member preference for rate-sensitive deposits. First mortgage concentration edged up to 16.32%, stable QoQ (+4 bps) but up 0.59 pp YoY from 15.73%, remaining well below the national 22.22%. Indirect auto held flat at 6.93% QoQ but declined 0.30 pp YoY from 7.24%, modestly below the national 7.71%.