Washington Credit Unions

Member engagement deteriorated on both timeframes in Q2 2026. Members Per Employee fell to 311.31% from 322.63% in Q1 2026, and sits 29.07 percentage points below the national benchmark of 340.38%, signaling operational capacity that is outpacing membership. Member growth deepened to -0.58% in Q2 2026 from -0.25% in Q1 2026 — now negative for four consecutive quarters since 2025-Q3, after the last positive reading of +0.04% in 2025-Q2. On a year-over-year basis, member growth decelerated by 0.62 pp from that +0.04% reading, underscoring a structural engagement challenge that profitability gains alone cannot mask.

Profitability improved on both timeframes in Q2 2026. ROA rose to 0.69% from 0.56% in Q1 2026 — a gain of 0.13 pp quarter-over-quarter — and increased by 9 bps from 0.60% in Q2 2025, though it remains 20 bps below the national benchmark of 0.89%. NIM strengthened to 3.80%, up 6 bps from 3.74% in Q1 2026 and up 0.13 pp from 3.67% in Q2 2025, now edging 6 bps above the national average of 3.74%. The margin expansion is a clear positive, but the gap to national ROA suggests cost or credit pressures continue to weigh on bottom-line conversion.

Growth signals were mixed in Q2 2026. Loan growth accelerated to 0.80% from 0.37% in Q1 2026 — a gain of 0.43 pp — and surged 1.43 pp from -0.63% in Q2 2025, marking four consecutive quarters of positive loan growth since 2025-Q3. WA credit unions lead the national loan growth rate of 0.22% by 58 basis points. Asset growth, however, decelerated to 2.01% from 2.61% in Q1 2026 and slipped 0.14 pp from 2.15% a year ago, falling 62 bps below the national pace of 2.63%. Asset growth has remained positive for five straight quarters since 2025-Q2, but the decelerating trend warrants attention.

The risk profile showed modest deterioration on a year-over-year basis in Q2 2026. Delinquency was stable quarter-over-quarter at 0.90%, up just 4 bps from 0.86% in Q1 2026, but increased 10 bps from 0.80% in Q2 2025, leaving WA credit unions 3 bps above the national benchmark of 0.88%. Net worth, however, improved on both timeframes — rising to 13.14% from 12.92% in Q1 2026 and from 12.74% in Q2 2025, a year-over-year gain of 0.40 pp — though it remains 67 bps below the national average of 13.81%. Capital accumulation is a stabilizing force against the slow creep in delinquency.

Portfolio composition shifted meaningfully over the past year. First mortgage concentration rose to 24.36% in Q2 2026, up 0.93 pp from 23.43% in Q2 2025 and up 0.16 pp from 24.20% in Q1 2026, already exceeding the national average of 22.22% by more than 2 percentage points. Certificate concentration edged up to 22.70% from 22.48% in Q1 2026 and from 22.34% a year ago, above the national 20.02%. Indirect auto exposure contracted sharply, falling to 15.96% from 17.69% in Q2 2025 — a 1.72 pp reduction — though at nearly double the national rate of 7.71%, it remains a concentration risk to monitor.