Virginia Credit Unions

Member engagement remained under pressure in Q2 2026. Member growth held at -0.91%, marking five consecutive negative quarters since 2025-Q2, when the cohort last posted a positive reading of +4.86%. That said, the pace of contraction is easing: the -0.91% reading improved from -1.15% in Q1 2026 (QoQ) and from -1.30% in Q2 2025 (YoY), accelerating by +0.24 pp and +0.39 pp respectively. Still, at 21 bps below the national benchmark of -0.69%, Virginia credit unions are losing members faster than the industry average, raising concerns about long-term growth capacity.

Profitability was the clear bright spot in Q2 2026. ROA jumped to 0.89% from 0.61% in Q1 2026, a gain of 0.27 pp QoQ, and from 0.63% in Q2 2025, a gain of 0.25 pp YoY — now exactly matching the national benchmark of 0.89%. NIM increased to 3.80% from 3.71% last quarter (+9 bps QoQ) and is stable versus 3.77% a year ago (+2 bps YoY), sitting 5 bps above the national 3.74%. Fee income per member rose sharply to 133.43% from 122.44% in Q1 2026 (+8.98 pp), and stands 11.45 pp above the national benchmark of 121.99%.

Growth trends deteriorated on both a QoQ and YoY basis in Q2 2026. Asset growth decelerated to 1.07% from 1.70% in Q1 2026 (-0.62 pp QoQ) and from 1.61% in Q2 2025 (-0.54 pp YoY), though it has remained positive for nine consecutive quarters since 2024-Q2. The cohort trails the national asset growth rate of 2.63% by 1.56 pp. Loan growth worsened to -2.66% from -1.71% in Q1 2026 (-0.95 pp QoQ) and from -0.56% in Q2 2025 (-2.10 pp YoY), now in its fifth consecutive negative quarter and running 2.88 pp below the national benchmark of +0.22%.

The risk profile showed a mixed picture in Q2 2026. Delinquency increased to 0.99% from 0.87% in Q1 2026 (+0.12 pp QoQ) and from 0.93% in Q2 2025 (+0.06 pp YoY), placing the cohort 12 bps above the national benchmark of 0.88% — a trend worth monitoring. On the capital side, net worth strengthened to 13.81% from 13.59% in Q1 2026 (+0.22 pp QoQ) and from 13.48% in Q2 2025 (+0.33 pp YoY), now exactly matching the national benchmark of 13.81%. Strong capital buffers provide resilience, but rising delinquency warrants close attention as loan contraction continues.

Portfolio composition shifted modestly in Q2 2026. First mortgage concentration rose to 22.15% from 22.08% in Q1 2026 (+0.06 pp QoQ) and from 20.72% in Q2 2025 (+1.43 pp YoY), nearly matching the national benchmark of 22.22%. Indirect auto exposure declined to 9.27% from 9.39% in Q1 2026 (-0.13 pp QoQ) and from 9.97% in Q2 2025 (-0.70 pp YoY), remaining 1.56 pp above the national 7.71%. Share certificate concentration was stable QoQ at 18.02% (from 17.98%) but down 0.43 pp YoY from 18.45%, trailing the national 20.02% by 2.00 pp.