Texas Credit Unions

Member engagement deteriorated on both timeframes in 2026-Q1. Member growth decelerated to -0.96% from -0.70% in 2025-Q4 — a 0.26 pp worsening quarter-over-quarter — and collapsed from +1.73% in 2025-Q1, a 2.69 pp swing into negative territory year-over-year. Texas credit unions now trail the national member growth rate of -0.65% by 31 basis points. The acceleration of membership losses signals weakening competitive positioning in member acquisition and retention, raising concerns about the long-term revenue base across the 380 institutions in this cohort.

Profitability declined on both a quarterly and annual basis in 2026-Q1. ROA decreased to 0.56% from 0.64% in 2025-Q4 (down 8 bps QoQ) and from 0.61% in 2025-Q1 (down 5 bps YoY), leaving Texas credit unions 11 bps below the national ROA of 0.67%. NIM decreased to 3.84% from 3.92% in 2025-Q4, though it remained essentially stable versus 3.83% a year ago — and notably sits 14 bps above the national 3.70%. The NIM advantage is narrowing, however, and without cost control or volume recovery, ROA compression is likely to persist.

Asset growth decelerated to 1.75% in 2026-Q1, down from 2.21% in 2025-Q4 (a 0.45 pp QoQ deceleration) and from 2.74% in 2025-Q1 (a 0.98 pp YoY deceleration), leaving Texas 89 bps below the national asset growth rate of 2.64%. Loan growth was stable at -1.26% compared to -1.31% in 2025-Q4 (a 5 bps improvement), though year-over-year data is unavailable for direct comparison. With loan balances contracting and the national loan growth rate at 0.31%, Texas credit unions face a 1.57 percentage point gap versus peers — signaling a structural demand or underwriting challenge that warrants strategic attention.

The risk profile of Texas credit unions showed a split picture in 2026-Q1. Delinquency decreased to 0.77% from 0.91% in 2025-Q4 — a meaningful 0.14 pp quarterly improvement — and now sits essentially in line with the national benchmark of 0.78%. However, delinquency has increased 0.09 pp from 0.68% in 2025-Q1, signaling a year-over-year credit quality drift. Net worth decreased slightly to 14.98% from 15.24% in 2025-Q4 (down 0.25 pp), yet increased 0.55 pp from 14.43% in 2025-Q1 and remains a strong 1.37 percentage points above the national 13.61%, providing a meaningful capital buffer.

Portfolio composition shifted modestly but directionally in 2026-Q1. First mortgage concentration increased to 16.28% from 16.04% in 2025-Q4 (up 0.24 pp QoQ) and from 15.64% in 2025-Q1 (up 0.64 pp YoY), though Texas remains well below the national 22.15%, suggesting limited mortgage exposure relative to peers. Indirect auto concentration decreased to 6.93% from 7.09% in 2025-Q4 (down 0.16 pp QoQ) and from 7.35% a year ago (down 0.42 pp YoY), trailing the national 7.73%. Share certificate concentration increased to 21.34% from 21.19% in 2025-Q4 and from 19.84% in 2025-Q1 (up 1.50 pp YoY), now exceeding the national 19.80% — reflecting a member 'flight to safety' in higher-rate deposits.