NEW YORK–A new report on credit union performance has fund that while commercial lending remains at strong levels, certain factors that “could create challenges in the future,” can also be seen.
The Credit Union Performance Trends: Q3 FY 2025 report, from Forvis Mazars, is based on NCUA Form 5300 data and has identified a number of trends, according to the company.
Among those trends:
- Annualized loan growth in the U.S. credit union system was 4.6% through the third quarter of 2025, led by loans and lines of credit (LOCs) for one- to four-family portfolios (first liens and junior liens) and commercial loans.
- Credit unions with total assets below $10 billion loan portfolios continue to mostly consist of one- to four-family loans (first liens and junior liens). Commercial loans, secured by real estate and by non-real estate, have increased by $42 billion from year-end 2022 to the third quarter of 2025.
- The analysis found a “dramatic rise in loan yields and leveling off of funding costs.”
- Asset quality metrics show mixed results, with 60-plus days delinquent loans increasing quarter-over-quarter, net charge-off (NCO) levels declining, and reserve levels slightly increasing.
