Utah Credit Unions

Member engagement improved on a year-over-year basis but showed signs of cooling quarter-over-quarter. Member growth reached 0.19% in Q2 2026, up sharply from -0.27% in Q2 2025 — a 46 bp YoY acceleration — marking the third consecutive positive quarter since 2025-Q4. However, growth decelerated 24 bps from the 0.43% pace recorded in Q1 2026, suggesting momentum is tapering. Crucially, Utah CUs remain 88 bps above the national benchmark of -0.69%, a meaningful advantage as the broader industry continues to shed members.

Profitability improved meaningfully quarter-over-quarter while holding essentially flat year-over-year. ROA rose to 0.87% in Q2 2026 from 0.73% in Q1 2026, a 14 bp sequential gain that brings Utah CUs within 2 bps of the national benchmark of 0.89%. Compared to Q2 2025's 0.86%, ROA is effectively stable — up just 0.7 bps YoY. NIM also advanced, rising 6 bps QoQ to 3.42% and 5 bps YoY from 3.37%, though it continues to trail the national average of 3.74% by 32 bps, leaving room for further margin optimization.

Utah CU asset growth decelerated in Q2 2026 but remains well above national levels. Asset growth slowed to 3.45% from 3.85% in Q1 2026 (down 0.40 pp QoQ) and from 4.27% in Q2 2025 (down 0.82 pp YoY), yet still outpaces the national rate of 2.63% by 82 bps — sustaining a positive streak now nine quarters long since 2024-Q2. Loan growth recovered, accelerating to 0.24% from -0.03% in Q1 2026, and is essentially stable versus 0.19% a year ago, now 2 bps above the national benchmark of 0.22%.

Utah CUs' risk profile deteriorated modestly across both timeframes, warranting close monitoring. Delinquency increased 7 bps QoQ to 0.80% in Q2 2026, and rose 17 bps from 0.62% in Q2 2025 — a meaningful YoY climb. While the cohort remains 8 bps below the national benchmark of 0.88%, the upward trajectory is notable. On the positive side, net worth strengthened to 14.06%, up 39 bps from Q1 2026's 13.67% and up 12 bps from Q2 2025's 13.94%, sitting 25 bps above the national 13.81%, providing a solid capital buffer against further credit deterioration.

Portfolio composition shifted modestly in Q2 2026, with notable divergence from national norms. Certificate concentration reached 28.50%, up 7 bps QoQ from 28.43% and up 83 bps YoY from 27.66% — far exceeding the national 20.02%, signaling member preference for higher-yield, fixed-term deposits. Indirect auto exposure contracted sharply, falling 78 bps QoQ to 6.31% and 125 bps YoY from 7.55%, now 140 bps below the national 7.71%. First mortgage concentration slipped 43 bps QoQ to 19.54% and 12 bps YoY from 19.66%, remaining below the national benchmark of 22.22%.