The Ledger — Q1 2026

Q1 2026

The Ledger — Q1 2026

FINASENSE Research · June 26, 2026

Fed Funds: 3.64% · 10Y: 4.30% · 2Y: 3.79%

Data through March 31, 2026 . All figures reflect the universe of 4,250 federally insured credit unions reporting for the quarter. Q1 income-based ratios are annualized (×4). Growth rates are quarter-over-quarter.

Q1 Annualization

Q1 income-based ratios (ROAA, NIM, NCO ratio) are annualized at 4× a single quarter, which amplifies one quarter of noise. Where a Q1 move looks large, weigh it against the year-over-year change, which is not distorted by the annualization factor. Quarter-over-quarter comparison of an annualized Q1 ratio against an annualized Q3 ratio (×4/3) or a full-year Q4 ratio is not like-for-like.

System at a Glance

Total Assets

$2,484.0B

Total Loans

$1,729.5B

Total Shares & Deposits

$2,122.8B

Net Income (YTD Q1)

$5.1B

Equity Ratio (GAAP)

10.32%

ROAA (annualized)

0.83%

Delinquency Ratio (60+)

0.85%

NCO Ratio (annualized)

0.81%

Capital Adequacy

10.32%

Equity-to-assets ratio (GAAP net worth)

The regulatory net worth ratio is 11.24% — 424 bps above the 7.00% well-capitalized threshold; equity up 11% year-over-year

Equity ratio at 10.32%; regulatory net worth ratio 11.24%: The system equity-to-assets ratio slipped 4 bps QoQ to 10.32% as of 3/31/2026, as the quarter's asset growth outpaced retained earnings, and still sits 57 bps above year-ago levels. This GAAP measure runs below the regulatory net worth ratio — 11.24%, the figure NCUA reports and the one measured against the 7.00% PCA floor — because it includes accumulated other comprehensive income. Total equity rose 11.1% year-over-year, outpacing the 4.9% asset growth, helped by an OCI recovery as long rates eased and underwater securities marked back up. On the GAAP basis, credit unions under $100M carry the thickest buffers at 13.8%; the over-$10B cohort runs leanest at 9.9%.

Source: NCUA 5300 Call Report; FINASENSE analysis.

Asset Quality

0.85%

60+ day delinquency ratio

Down 18 bps QoQ on the seasonal Q1 cure, but up 5 bps from a year ago — the floor keeps ratcheting

Delinquency at 0.85% — seasonally lower, structurally higher: The 60+ day delinquency ratio fell to 0.85% as of 3/31/2026, down 18 bps from year-end as tax-refund season cured past-due balances. The cleaner read is the year-over-year floor: at 0.85%, this Q1 sits 5 bps above Q1 2025's 0.80% and well above Q1 2024's 0.78% — the seasonal low is ratcheting higher each year. The over-$10B cohort carries a 1.12% rate, the highest of any tier; the mid-tiers sit near 0.72%. Annualized net charge-offs were 0.81%, up 4 bps QoQ. Delinquent balances are still aging into late buckets rather than converting to losses on schedule.

Delinquency Formula

Starting with the Q3 2025 cycle, the FPR delinquency ratio uses account `AAS0016` (total delinquent loans, revised definition) in place of `A661A`. The revised formula broadens the delinquent loan population to include certain restructured loans previously excluded. The system-wide impact is roughly 2–3 bps. Trend comparisons across the transition should account for this shift.

Source: NCUA 5300 Call Report; FINASENSE analysis.

Earnings

3.44%

Net interest margin (annualized, Q1)

Highest single-quarter run-rate in the dataset; up 20 bps year-over-year

Annualized NIM at 3.44%, ROAA at 0.83%: The single-quarter net interest margin annualized to 3.44%, the highest quarterly run-rate in the dataset and 20 bps above Q1 2025's 3.24%, as the Fed's easing pulled funding costs down faster than loan yields fell. Annualized ROAA reached 0.83%, up 16 bps year-over-year, and Q1 net income of $5.1 billion ran 30% ahead of the same quarter last year. The cohort spread is the story: the over-$10B tier earned an annualized 1.04% ROAA while credit unions under $100M earned just 0.13% — barely above breakeven. Read the annualized Q1 figures against the year-over-year change, not against Q4's full-year numbers.

Source: NCUA 5300 Call Report; FINASENSE analysis.

Loan Growth & Composition

0.49%

System loan growth, Q1 2026

Weak even for a Q1; the under-$100M tier contracted again, while the over-$10B tier grew 4.5%

Loans grew just 0.49% QoQ: System loans grew 0.49% quarter-over-quarter in Q1 2026 — soft even by the standards of a seasonally slow first quarter, and a step down from Q4's 1.08%. The growth was lopsided: the over-$10B cohort expanded loans 4.5% while credit unions under $100M contracted 1.1%, extending a multi-quarter run of negative loan growth at the smallest tier. On a year-over-year basis loans rose 4.6%. With deposits growing faster than loans (see Liquidity), the loans-to-assets ratio fell to 69.6% from 70.7%.

Source: NCUA 5300 Call Report; FINASENSE analysis.

Liquidity

69.63%

System loans-to-assets ratio

Down 111 bps QoQ as 2.7% deposit growth outpaced 0.5% loan growth

Deposits grew a seasonal 2.7% QoQ; borrowings fell 9%: Shares and deposits grew 2.7% QoQ to $2.12 trillion — a typical seasonal first-quarter inflow, roughly in line with the prior two Q1s — but with loan growth at just 0.5%, the gap still pulled the loans-to-assets ratio down 111 bps to 69.6%. The surplus went where it usually goes when loans don't keep pace: investments rose 3.6% to $383 billion, and borrowings fell to $75.2 billion from $83.0 billion, down 14% year-over-year. The largest credit unions still run the tightest liquidity; institutions under $100M hold the most balance-sheet slack.

Source: NCUA 5300 Call Report; FINASENSE analysis.

Standardized Data Table — Q1 2026

Key CAMELS-aligned metrics by asset-size cohort for the quarter ending March 31, 2026. Q1 income-based ratios are annualized (×4). Growth rates are single-quarter (QoQ).

Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q1 2026

No Results

This report is provided for informational and educational purposes only and does not constitute investment, legal, regulatory, or examination advice, nor should it be relied upon as the basis for any decision.

FINASENSE is not affiliated with the National Credit Union Administration (NCUA). Financial data is sourced from NCUA 5300 Call Report filings as submitted by individual credit unions and is not guaranteed as to accuracy or completeness. Ratio definitions and account classifications reference the NCUA Financial Performance Report (FPR) Chart of Accounts. All aggregation, analysis, and derived metrics are independently computed by FINASENSE and may differ from NCUA-published figures. Interpretations reflect the views of FINASENSE and not those of the NCUA.

This report does not consider the specific circumstances of any individual credit union and is not tailored advice. FINASENSE has no financial relationship with, and receives no compensation from, any institution referenced.

All information is provided "as is," without warranty of any kind, and FINASENSE disclaims liability for any decisions made in reliance on this report. Historical metrics are not indicative of future financial condition. This report is proprietary to FINASENSE, a publication of IP Foundries, LLC (Arizona), and may not be reproduced, distributed, or reused without prior written consent.