Q2 2026
The Ledger — Q2 2026
Fed Funds: 3.63% · 10Y: 4.44% · 2Y: 4.14%
Data through June 30, 2026. All figures reflect the universe of 4,215 federally insured credit unions reporting for the quarter. Q2 income-based ratios are annualized (×2). Growth rates are quarter-over-quarter.
Q2 Annualization
Q2 income-based ratios (ROAA, NIM, NCO ratio) annualize the half-year YTD figure by ×2. They are not directly comparable to a Q1 reading (annualized ×4 off a single quarter); the year-over-year change is the cleaner comparison.
Scope and limitations of this report are at its foot.
System at a Glance
Total Assets
$2,498.9B
Total Loans
$1,763.5B
Total Shares & Deposits
$2,127.1B
Net Income (YTD H1)
$11.2B
Equity Ratio (GAAP)
10.48%
ROAA (annualized)
0.90%
Delinquency Ratio (60+)
0.96%
NCO Ratio (annualized)
0.78%
Capital Adequacy
10.48%
The regulatory net worth ratio is 11.42%, 442 bps above the 7.00% well-capitalized threshold; equity up 10% year-over-year
Equity ratio at 10.48%; regulatory net worth ratio 11.42%: The system equity-to-assets ratio rose 16 bps in the quarter to 10.48%, and is 50 bps above its level a year ago. This GAAP measure runs below the regulatory net worth ratio because it includes accumulated other comprehensive income, at present a net loss. The regulatory ratio, the figure NCUA reports and the one measured against the 7.00% PCA floor, is 11.42%, the highest since the series begins in 2019. Total equity rose 10.4% year-over-year against asset growth of 5.0%. Assets grew 0.60% in the quarter, and net income ran ahead of last year's (see Earnings). On the GAAP basis, credit unions under $100M carry the highest ratio, 13.9%, and the over-$10B cohort the lowest, 10.1%.
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2026, Signal 3: The Widest Margin in the Series, and a Gain That Sits at the Top
Asset Quality
0.96%
Up 12 bps from the Q1 seasonal low and 6 bps from a year ago; the highest second-quarter reading since the series begins in 2019
Delinquency at 0.96%, up from the first-quarter low and from a year ago: The 60+ day delinquency ratio rose to 0.96% from 0.85% at the end of Q1, as it has after the first-quarter low in each of the last five years. The like-for-like comparison is with other second quarters: 0.91% a year ago and 0.84% two years ago. The rise off the Q1 low, 12 bps, is close to last year's 11 bps. The over-$10B cohort carries 1.27%, the highest of any tier, and credit unions under $100M follow at 1.07%. Net charge-offs annualized to 0.78% for the half, against 0.79% a year ago. The ACL covers 60+ day delinquent loans 1.37 times, down from 1.45 a year ago: delinquent balances grew 11% over the year and the allowance 6%. Against all loans the allowance is 1.32%, from 1.31%.
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
Earnings
3.46%
The highest reading since the series begins in 2019; up 18 bps year-over-year
Annualized NIM at 3.46%, ROAA at 0.90%: The half-year net interest margin annualized to 3.46%, the highest reading since the series begins in 2019 and 18 bps above the first half of 2025. Net interest income for the half rose 10.7% year-over-year: interest income grew 6.1% while interest expense fell 2.2%. Annualized ROAA reached 0.90%, up 16 bps year-over-year and the highest first-half reading since 2021. Net income of $11.2 billion for the half ran 27% ahead of last year's. In order of size, the four larger tiers returned 0.80%, 0.81%, 0.88% and 1.06%. Credit unions under $100M returned 0.43%, against 0.76% in the first half of 2025. The half-year figures compare with the year-over-year change, not with Q1's single-quarter run-rate.
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2026, Signal 3: The Widest Margin in the Series, and a Gain That Sits at the Top
Loan Growth & Composition
1.96%
The highest quarterly rate since Q2 2023, and above the last two second quarters
Loans grew 1.96% quarter-over-quarter, the highest rate since Q2 2023: System loans grew 1.96% in the quarter, against 0.49% in Q1 and the highest since Q2 2023's 2.05%. Loan growth picks up from the first quarter to the second every year, and this second quarter's rate was above the last two: 1.66% in Q2 2025 and 1.04% in Q2 2024. Every tier grew, as every tier has in each second quarter since 2021. The $500M–$1B tier led at 2.59%; credit unions under $100M grew 0.67%, less than the 0.82% of Q2 2025. On a year-over-year basis loans rose 4.9%. Loans grew faster than deposits (see Liquidity), and the loans-to-assets ratio rose to 70.6% from 69.6%.
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2026, Signal 1: Loan Growth Came Back, and It Is Real Estate
Liquidity
70.57%
Up 95 bps quarter-over-quarter as 2.0% loan growth met 0.2% deposit growth
Deposits grew 0.2% quarter-over-quarter; cash fell 13% and borrowings rose: Shares and deposits grew 0.20% in the quarter to $2.13 trillion, while loans grew 1.96%. The gap lifted the loans-to-assets ratio 95 bps to 70.6%, most of the way back to its year-end level of 70.7%. Cash and deposits at other institutions fell 12.5% to $220.4 billion, as they fell 9.6% in Q2 2025. Investments rose 2.4% to $392.5 billion. Borrowings rose 4.9% to $78.9 billion, the first increase in a year, and remain 12% below the year-ago level. The largest credit unions have the highest loans-to-assets ratio, 72.5%, and institutions under $100M the lowest, 51.0%.
3Q24–2Q26
Source: NCUA Call Report, Q2 2026 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2026, Signal 1: Loan Growth Came Back, and It Is Real Estate
Standardized Data Table — Q2 2026
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending June 30, 2026. Q2 income-based ratios are annualized (×2). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2026
| Cohort | CUs | Total Assets | Net Worth | ROAA | NIM | Delinq. (60+) | NCO Ratio | Loans/Assets | Loan Gr. (QoQ) | Asset Gr. (QoQ) |
|---|---|---|---|---|---|---|---|---|---|---|
| Under $100M | 2,439 | $73.9B | 13.92% | 0.43% | 3.78% | 1.07% | 0.47% | 51.04% | 0.67% | -0.05% |
| $100M–$500M | 1,028 | $238.8B | 11.39% | 0.80% | 3.66% | 0.87% | 0.47% | 63.07% | 2.09% | 0.64% |
| $500M–$1B | 277 | $199.3B | 10.20% | 0.81% | 3.52% | 0.82% | 0.53% | 69.61% | 2.59% | 0.84% |
| $1B–$10B | 446 | $1,295.6B | 10.36% | 0.88% | 3.26% | 0.83% | 0.61% | 72.19% | 2.15% | 0.70% |
| Over $10B | 25 | $691.4B | 10.09% | 1.06% | 3.71% | 1.27% | 1.27% | 72.49% | 1.91% | 0.84% |
Scope and limitations
- Q2 income ratios annualize the half-year figure and are not directly comparable to a Q1 reading, which is annualized from a single quarter.
- Growth rates are quarter over quarter and not seasonally adjusted; the rise in delinquency, the pickup in lending and the fall in cash are each in part the seasonal reversal of the first quarter.
- Tier loan growth is for the institutions in a tier at quarter-end against their own prior quarter; it includes loans acquired by merger and is not comparable to the system rate.
- The capital ratio charted is GAAP equity over assets, which includes accumulated other comprehensive income; it is not the regulatory net worth ratio, the one measured against the well-capitalized threshold.
- The figures are aggregates for the system and for each asset tier; a single credit union's position cannot be read from them.
Data: Q2 2026 · Period 3Q24–2Q26 · release v2026.2.27 · How the figures are produced
Revisions
. Refrozen to release v2026.2.27; no printed figure changed. Edited for style. Readings the report does not measure were removed: that the quarter's capital gain came from earnings, that the lending was funded from cash, that the first quarter's inflow is lent out in the second, and that delinquency rose from a higher floor at the same slope.
. The Delinquency Formula note and the limitation built on it were removed: 60+ day delinquency is computed from one Call Report account in every cycle, so the year-over-year comparison crosses no change of definition. Tier loan growth is now described on its own basis, the allowance is also given against all loans, and the highest readings name the span they cover, from 2019.
Cite as: QuarterCall Research, “The Ledger — Q2 2026”, October 5, 2026, release v2026.2.27. https://quartercall.com/research/pulse/2026-q2/
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.
QuarterCall Research is not affiliated with the National Credit Union Administration (NCUA), and its interpretations are not those of the NCUA. Figures are independently computed from NCUA 5300 Call Report filings as submitted by individual credit unions; they are not guaranteed as to accuracy or completeness and may differ from NCUA-published figures.
This report does not consider the specific circumstances of any individual credit union and is not tailored advice. QuarterCall Research has no financial relationship with, and receives no compensation from, any institution referenced.
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