Wisconsin Credit Unions

Member engagement remains a persistent soft spot for Wisconsin credit unions in Q2 2026. Membership declined -0.13%, marking the fourth consecutive quarter of contraction since 2025-Q3, when the cohort last posted a positive reading of +0.09% in Q2 2025. Quarter-over-quarter, the pace of decline was essentially stable—improving just 0.02 pp from -0.15% in Q1 2026—offering limited encouragement. On a brighter note, Wisconsin's -0.13% contraction still outperforms the national average of -0.69%, sitting 56 basis points above the industry benchmark, suggesting relative resilience even as the membership trend deteriorates year-over-year.

Profitability strengthened materially in Q2 2026. ROA rose to 0.96%, up 0.17 pp from 0.79% in Q1 2026 and up 0.11 pp from 0.85% in Q2 2025, placing Wisconsin credit unions 7 basis points above the national benchmark of 0.89%. Net interest margin held steady quarter-over-quarter at 3.72%—a stable gain of just 0.045 pp from 3.67% in Q1 2026—while improving 0.056 pp year-over-year from 3.66% in Q2 2025. At 3.72%, NIM sits just 2 basis points below the national average of 3.74%, reflecting a near-parity interest income position that supports the cohort's above-benchmark earnings.

Balance-sheet growth accelerated broadly in Q2 2026. Asset growth reached 5.34%, up 0.85 pp from 4.49% in Q1 2026 and up 2.46 pp from 2.88% in Q2 2025—extending a positive streak now nine consecutive quarters and running 2.71 percentage points above the national rate of 2.63%. Loan growth accelerated to 4.49%, up 0.78 pp quarter-over-quarter and up 3.18 pp year-over-year from 1.30% in Q2 2025, marking five straight quarters of positive growth and outpacing the national 0.22% by 4.27 pp. Deposit growth also accelerated to 5.16% in Q2 2026, up 0.89 pp from 4.27% in Q1 2026, exceeding the national benchmark of 2.21% by 2.95 pp.

Wisconsin credit unions' risk profile presents a mixed picture in Q2 2026. Delinquency increased to 0.62%, up 0.077 pp from 0.54% in Q1 2026, though it remained stable year-over-year—essentially flat versus 0.62% in Q2 2025. Despite the quarterly uptick, the cohort remains 26 basis points below the national delinquency rate of 0.88%, a meaningful buffer. Charge-offs were stable at 0.19%, up just 0.050 pp from 0.14% in Q1 2026 and well below the national 0.38%. Net worth strengthened to 12.68%, up 0.17 pp from Q1 2026 and 0.11 pp from Q2 2025, though it trails the national benchmark of 13.81% by 1.13 pp.

Wisconsin credit unions continued shifting toward real estate in Q2 2026. First mortgage concentration reached 38.07%, up 1.66 pp year-over-year from 36.41% in Q2 2025, and stands dramatically above the national average of 22.22%—a 15.85 pp gap that underscores the cohort's heavy real estate orientation. Indirect auto exposure edged higher to 8.40%, up 0.38 pp year-over-year and 0.39 pp quarter-over-quarter from 8.01% in Q1 2026, modestly above the national 7.71%. Share certificate concentration rose to 21.63%, up 0.70 pp from 20.92% in Q2 2025, slightly above the national 20.02%, reflecting continued member preference for term deposits.