Vermont's 12 credit unions delivered a standout Q2 2026, with member growth accelerating to 6.00% — 6.69 percentage points above the national average of -0.69% — and loan growth hitting 9.34%, up sharply from -0.72% a year ago. ROA improved to 0.67% both QoQ (+0.33 pp) and YoY (+6 bps), though it remains 21 bps below the national 0.89%. The growth story carries a risk caveat: delinquency rose to 1.56%, up 0.34 pp year-over-year and 68 bps above the national benchmark. Sustaining this expansion without further credit deterioration is the defining challenge ahead.
Vermont CUs Post 6% Member Surge and 9%+ Loan Growth, But Delinquencies Climb 34 Bps Year-Over-Year
Key Insights
Year-over-Year Changes
Indirect Auto Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
4.75% → 5.78%
(+1.03%)
Asset Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
1.97% → 9.13%
(+7.16%)
Share Certificate Concentration (%) (Absolute)
▲
2025-Q2
→
2026-Q2
23.06% → 23.42%
(+0.35%)
First Mortgage Concentration (%) (Absolute)
▼
2025-Q2
→
2026-Q2
33.73% → 32.60%
(-1.13%)
Loan Growth (YoY) (Absolute)
▲
2025-Q2
→
2026-Q2
-0.72% → 9.34%
(+10.06%)
Quarter-over-Quarter Changes
Indirect Auto Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
5.52% → 5.78%
(+0.26%)
Asset Growth (YoY) (Absolute)
▼
2026-Q1
→
2026-Q2
11.24% → 9.13%
(-2.10%)
Share Certificate Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
21.76% → 23.42%
(+1.66%)
First Mortgage Concentration (%) (Absolute)
▲
2026-Q1
→
2026-Q2
30.30% → 32.60%
(+2.30%)
Loan Growth (YoY) (Absolute)
▲
2026-Q1
→
2026-Q2
7.76% → 9.34%
(+1.58%)
Key Metrics
Return on Assets
0.67%
▲ YoY21 basis points below national
Net Interest Margin
4.22%
▲ YoY48 basis points above national
Asset Growth
9.13%
▲ YoYMember Growth
6.00%
Delinquency Rate
1.56%
▲ YoYNet Worth Ratio
11.06%
AMR Growth
-1.83%
Deposit Growth
10.13%
Loan Growth
9.34%
▲ YoYMember Engagement
Member Growth (YoY %)
Member engagement surged in Q2 2026, with member growth accelerating to 6.00% from 4.15% in Q1 2026 (QoQ) and reversing a -1.25% contraction recorded in Q2 2025 (YoY) — a 7.25 pp swing. This marks the fourth consecutive quarter of positive member growth since Q3 2025, a streak that stands in sharp contrast to the national average of -0.69%. Vermont credit unions are attracting members at a pace that suggests meaningful competitive differentiation in their local markets, though sustaining this momentum will require continued investment in product depth and service quality.
Profitability
Return on Assets (%)
Net Interest Margin (%)
Profitability improved on both timeframes in Q2 2026. ROA increased to 0.67% from 0.34% in Q1 2026 (QoQ, +0.33 pp) and rose from 0.62% in Q2 2025 (YoY, +6 bps), though it remains 21 bps below the national benchmark of 0.89%. NIM strengthened to 4.22%, up 7 bps both QoQ from 4.16% in Q1 2026 and YoY from 4.16% in Q2 2025, and now sits 48 bps above the national average of 3.74%. The NIM advantage is a genuine bright spot, partially offsetting the ROA gap versus peers.
Growth
Asset Growth (YoY %)
Member Growth (YoY %)
Growth momentum is broad and strong. Asset growth came in at 9.13% in Q2 2026, decelerating from 11.24% in Q1 2026 (QoQ, -2.10 pp) but accelerating sharply from 1.97% in Q2 2025 (YoY, +7.16 pp) — marking nine consecutive quarters of positive asset growth since Q2 2024. Loan growth accelerated to 9.34%, up from 7.76% in Q1 2026 (QoQ, +1.58 pp) and reversing a -0.72% contraction in Q2 2025 (YoY, +10.06 pp), with four straight quarters of positive loan growth. Both metrics substantially outpace the national loan growth rate of 0.22% and asset growth rate of 2.63%.
Risk & Credit Quality
Delinquency Rate (%)
Net Worth Ratio (%)
The risk profile deteriorated in Q2 2026. Delinquency rose to 1.56% from 1.28% in Q1 2026 (QoQ, +0.27 pp) and from 1.22% in Q2 2025 (YoY, +0.34 pp), leaving Vermont CUs 68 bps above the national benchmark of 0.88%. Net worth increased to 11.06% from 10.47% in Q1 2026 (QoQ, +0.59 pp), a positive buffer signal, but it has decreased from 11.33% in Q2 2025 (YoY, -0.28 pp) and remains 2.75 pp below the national average of 13.81%. Rising delinquency alongside rapid loan expansion warrants close monitoring.
Portfolio Mix
First Mortgage (%)
Indirect Auto (%)
Share Certificates (%)
Vermont CUs' portfolio composition shifted notably in Q2 2026. First mortgage concentration rose to 32.60% from 30.30% in Q1 2026 (QoQ, +2.30 pp) but declined from 33.73% in Q2 2025 (YoY, -1.13 pp), remaining well above the national benchmark of 22.22%. Indirect auto concentration edged up to 5.78% from 5.52% in Q1 2026 (QoQ, +0.26 pp) and from 4.75% in Q2 2025 (YoY, +1.03 pp), still below the national 7.71%. Share certificate concentration increased to 23.42% from 21.76% in Q1 2026 (QoQ, +1.66 pp) and from 23.06% in Q2 2025 (YoY, +0.35 pp), exceeding the national 20.02%.
Strategic Implications
- • With loan growth at 9.34% and delinquency climbing 34 bps year-over-year to 1.56%, Vermont CUs must tighten underwriting standards now to avoid credit quality erosion that could erode the NIM advantage.
- • The 6.00% member growth rate — nearly 6.69 pp above the national average — signals a window for deepening wallet share through cross-sell strategies before competitive pressure normalizes growth.
- • Net worth at 11.06%, already 2.75 pp below the national benchmark of 13.81%, limits the capital runway for continued aggressive asset expansion; capital planning should be prioritized alongside growth targets.
- • First mortgage concentration at 32.60% — 10.38 pp above the national average — creates meaningful interest rate sensitivity; institutions should evaluate hedging or diversification into shorter-duration products.
- • Rising certificate concentration to 23.42% (above the national 20.02%) alongside rapid asset growth suggests funding costs may increase; proactive liability management will be critical to protecting the 48 bps NIM lead over national peers.
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Notable Patterns
How This Cohort Compares to National
Mpe (Annual) is 13.3pp above national
First Mortgage Share is 10.4pp above national
Loan Growth (annual) is 9.1pp above national
Member Growth (annual) is 6.7pp above national
Asset Growth (annual) is 6.5pp above national
Data Quality Notes
3 metric(s) had extreme values filtered using MAD-based, z-score > 5.0.
Asset Growth (YoY) (Absolute)
1 CU(s) excluded
Raw average: 12.44% →
Cleaned average: 9.13%
View excluded credit unions
- GREEN MOUNTAIN (63859) - 48.82%
Member Growth (YoY) (Absolute)
1 CU(s) excluded
Raw average: 13.75% →
Cleaned average: 6.00%
View excluded credit unions
- GREEN MOUNTAIN (63859) - 99.00%
Net Worth Ratio (Absolute)
1 CU(s) excluded
Raw average: 12.29% →
Cleaned average: 11.06%
View excluded credit unions
- CENTRAL VERMONT MEDICAL CENTER,INC. (65090) - 25.89%