Credit Union Exam Solutions Presents With Flying Colors

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Mark Treichel sits down with former NCUA colleagues Steve Farrar and Todd Miller to review the credit union industry data for the quarter ending March 31, 2026. The consensus: a quiet, healthy quarter with steady capital, improving earnings, and incrementally better liquidity — alongside a few signals worth a board’s attention.

The conversation covers the macro backdrop (persistent inflation, a resilient economy, and widely varying state unemployment) before walking through the data CAMELS-style: capital, asset quality, earnings, and liquidity.

Highlights include a 28% single-quarter jump in merger-related “phantom equity” from $9.2B to $11.9B; total delinquency falling 19.7% quarter over quarter even as commercial real estate delinquency climbs; the persistent loan-loss and operating-expense gaps between credit unions and community banks; and 639 credit unions reporting negative earnings, overwhelmingly those under $100 million in assets. The group closes on what a stable quarter means for an NCUA adjusting to a 25% staffing reduction.

Topics: NCUA Q1 2026 call report data, net worth and PCA, mergers and intangible equity, delinquency by loan category, commercial real estate risk, credit union vs. community bank comparisons, liquidity and share growth, and small-credit-union earnings pressure.