Virginia Credit Unions

Member engagement deteriorated further in Q1 2026, with member growth decelerating to -1.15% from -0.93% in Q4 2025 — a 0.22 pp quarter-over-quarter decline. The year-over-year picture is starker: growth decelerated 6.01 pp from the +4.86% posted in Q1 2025, representing a dramatic reversal. At -1.15%, Virginia credit unions trail the national average of -0.65% by 50 basis points. Sustained membership contraction raises questions about whether recent fee structures, branch accessibility, or competitive pressure from digital-first institutions are eroding the membership base.

Profitability presents a mixed but broadly constructive picture for Virginia credit unions in Q1 2026. ROA held at 0.61%, essentially stable quarter-over-quarter from 0.62% in Q4 2025 (a mere 1 bp change), but meaningfully increased from 0.48% in Q1 2025 — a 0.14 pp year-over-year gain. ROA remains 6 bps below the national benchmark of 0.67%. NIM decreased to 3.71% from 3.85% in Q4 2025, a 0.14 pp quarterly compression, though it is stable year-over-year relative to 3.75% in Q1 2025, and sits 1 bp above the national average of 3.70%.

Growth decelerated across the board in Q1 2026. Asset growth slowed to 1.70% from 2.59% in Q4 2025 (a 0.90 pp deceleration) and further decelerated from 3.72% in Q1 2025 — a 2.03 pp year-over-year decline — leaving Virginia 94 bps below the national asset growth rate of 2.64%. Loan growth deteriorated to -1.71% from -0.51% in Q4 2025, a 1.20 pp deceleration, and now trails the national benchmark of 0.31% by 2.02 percentage points. Negative loan growth in consecutive quarters signals weakening origination pipelines and potential credit tightening.

The risk profile for Virginia credit unions showed improvement quarter-over-quarter but mild deterioration year-over-year in Q1 2026. Delinquency decreased to 0.87% from 1.00% in Q4 2025, a 0.13 pp improvement, but increased 5 bps from 0.82% in Q1 2025, and sits 9 bps above the national benchmark of 0.78%. Net worth decreased modestly to 13.59% from 13.67% in Q4 2025 (9 bps), yet increased 0.43 pp from 13.15% in Q1 2025, landing just 3 bps below the national average of 13.61% — reflecting a well-capitalized cohort despite incremental quarterly erosion.

Virginia credit unions shifted modestly toward mortgage concentration in Q1 2026. First mortgage share increased to 22.08% from 21.59% in Q4 2025 (up 0.50 pp QoQ) and from 20.92% in Q1 2025 (up 1.17 pp YoY), now nearly aligned with the national benchmark of 22.15%. Indirect auto exposure stands at 9.39%, down 0.46 pp year-over-year, yet still 1.66 pp above the national average of 7.73%. Share certificate concentration edged down to 17.98% from 18.27% in Q4 2025 (down 0.30 pp QoQ) and down just 0.06 pp year-over-year, remaining 1.82 pp below the national 19.80%.