Virgin Islands Credit Unions

Member growth for VI Credit Unions remained positive in Q2 2026 at 0.29%, extending a streak of positive growth for six consecutive quarters since 2025-Q1 — even as momentum decelerated sharply, down 1.04 pp from 1.33% in Q1 2026 and 2.27 pp below the 2.56% recorded in Q2 2025. Despite the slowdown, the cohort stands 98 basis points above the national benchmark of -0.69%, which is itself in contraction territory. The divergence between decelerating membership and accelerating loan growth signals that existing members are deepening their borrowing relationships rather than new members driving volume.

Profitability for VI Credit Unions rebounded dramatically in Q2 2026. ROA surged to 2.13%, recovering from -0.47% in Q1 2026 — a swing of 2.60 pp quarter-over-quarter — and rising 1.54 pp from 0.59% in Q2 2025. At 1.25 pp above the national benchmark of 0.89%, this is a standout result. NIM edged down a modest 0.05 pp from 4.54% in Q1 2026 to 4.49% in Q2 2026, though it is up 0.08 pp year-over-year from 4.41% in Q2 2025 and remains 75 basis points above the national 3.74%, reflecting a structurally favorable interest income position.

Growth dynamics in Q2 2026 present a sharp divergence. Loan growth accelerated to 6.31%, up 0.77 pp from 5.54% in Q1 2026 and up 4.39 pp from 1.92% in Q2 2025 — marking five consecutive positive quarters since 2025-Q2 and sitting 6.09 pp above the national benchmark of 0.22%. Asset growth, however, decelerated further to -1.19%, down 0.70 pp from -0.49% in Q1 2026 and a steep 6.87 pp below the 5.68% recorded in Q2 2025, now in its second consecutive negative quarter. This divergence suggests loan expansion is not being matched by broader balance sheet growth.

The risk profile for VI Credit Unions deteriorated in Q2 2026. Delinquency increased to 2.04%, up 0.19 pp from 1.85% in Q1 2026 and up a significant 1.14 pp from 0.90% in Q2 2025, placing the cohort 1.17 pp above the national benchmark of 0.88%. This trend warrants close monitoring given the concurrent acceleration in loan growth. Net worth provides a meaningful buffer: at 15.36%, it increased 0.13 pp from 15.23% in Q1 2026 and 0.34 pp from 15.02% in Q2 2025, sitting 1.55 pp above the national 13.81%, offering capital cushion against potential credit losses.

VI Credit Unions maintain a highly distinctive portfolio composition relative to national norms. First mortgage concentration held essentially flat at 0.11% in Q2 2026, down just 0.01 pp year-over-year from 0.12% in Q2 2025 and unchanged from Q1 2026 — a stark contrast to the national average of 22.22%. Indirect auto lending remains at 0.00%, stable both quarter-over-quarter and year-over-year, versus the national 7.71%. Share certificate concentration declined 0.12 pp from 4.87% in Q1 2026 and 0.14 pp from 4.89% in Q2 2025 to 4.74%, well below the national 20.02%, reflecting a structurally different funding and lending model.