Utah Credit Unions

Member engagement delivered a mixed but cautiously positive signal in Q1 2026. Member growth accelerated sharply quarter-over-quarter, rising to 0.43% from a near-stagnant 0.02% in Q4 2025 — a gain of 0.41 pp. Against the national benchmark of -0.65%, Utah CUs stand 1.08 pp ahead, a meaningful advantage. However, year-over-year context tempers optimism: growth decelerated by 5.68 pp from the 6.11% recorded in Q1 2025, reflecting a normalizing post-pandemic membership environment. Sustaining this QoQ rebound will be critical as loan demand softens.

Profitability declined on both a quarterly and annual basis in Q1 2026. ROA fell to 0.73% from 0.85% in Q4 2025 — a decrease of 0.11 pp — and is down 0.09 pp from 0.82% in Q1 2025. Utah CUs remain 6 basis points above the national benchmark of 0.67%, a modest buffer that may erode if margin compression continues. NIM decreased to 3.36% from 3.41% in Q4 2025, a 5-basis-point decline, though year-over-year NIM is essentially stable, edging up just 3 bps from 3.33% in Q1 2025. At 34 bps below the national NIM of 3.70%, spread income remains a structural challenge.

Growth momentum decelerated across the board in Q1 2026. Asset growth slowed to 3.85% from 5.14% in Q4 2025 — a deceleration of 1.29 pp — and has decelerated sharply from 10.20% in Q1 2025, a 6.35 pp drop year-over-year. Despite this, Utah CUs still outpace the national asset growth rate of 2.64% by 1.21 pp. More concerning, loan growth turned negative at -0.03% in Q1 2026, decelerating 0.47 pp from 0.44% in Q4 2025, and now trails the national benchmark of 0.31% by 34 basis points. Rebuilding loan demand is the cohort's most pressing near-term growth challenge.

The risk profile for Utah CUs is mixed in Q1 2026, with short-term improvement offset by longer-term deterioration. Delinquency decreased to 0.73% from 0.87% in Q4 2025 — a favorable 0.14 pp QoQ improvement — and sits 5 basis points below the national 0.78%. However, delinquency has increased 0.12 pp from 0.60% in Q1 2025, signaling a gradual credit quality erosion year-over-year. Charge-offs increased to 0.37% from 0.31% in Q4 2025, a 6-basis-point rise, and are 2 bps above the national 0.35%. Net worth remained stable at 13.67%, essentially unchanged from 13.71% last quarter but up 0.20 pp from 13.47% a year ago, providing a solid capital cushion.

Utah CUs' portfolio composition reflects notable divergence from national norms in Q1 2026. Share certificate concentration reached 28.43%, up 1.46 pp from 26.97% in Q1 2025 — far exceeding the national benchmark of 19.80% and signaling elevated funding costs that pressure NIM. First mortgage concentration stands at 19.98%, up 0.35 pp year-over-year but trailing the national 22.15%, suggesting relative underexposure to long-duration assets. Indirect auto lending at 7.09% declined 0.72 pp year-over-year and falls below the national 7.73%, reflecting a deliberate or demand-driven pullback in a segment facing rising credit stress nationally.