ALEXANDRIA, Va.—The nation’s credit unions on an overall basis reported asset, loan and membership growth in the year ending with the third quarter, but once again the data also show the positive numbers only apply to the largest credit unions.
Credit unions of $1 billion and below in assets reported decreases in lending and membership. The total number of credit unions continues to decrease.
Overall, total assets in federally insured credit unions rose by $86 billion, or 3.7%, over the year ending in the third quarter of 2025, to $2.40 trillion, while loans outstanding increased $72 billion, or 4.4%, over the year, to $1.70 trillion, according to NCUA’s new Third Quarter 2025 NCUA Quarterly Data Summary Report.
The data show the CU industry net worth ratio was also up, while insured shares and deposits rose $76 billion, or 4.3%, over the year ending in the second quarter of 2025, to $1.84 trillion, while the credit union system’s net worth ratio was 11.24% in the third quarter of 2025, compared with 10.94% one year earlier. (As the agency noted, beginning in 2023 Q1, this ratio excludes the CECL transition provision.
The Overall Data
Among the overall data points:
- Net income totaled $19.1 billion at an annual rate in the year to date through the third quarter of 2025, up $3.3 billion, or 21.0%, compared with the same period in 2024.
- The number of credit unions with a low-income designation declined to 2,392 in the third quarter of 2025 from 2,446 one year earlier. Their share edged up to 55% of all federally insured credit unions in the third quarter of 2025.
- Total investments rose $8.5 billion, or 2.2%, over the year to $400.7 billion in the third quarter of 2025.
- The delinquency rate at federally insured credit unions was 95 basis points in the third quarter of 2025, up four basis points from one year earlier. The net charge-off ratio was 77 basis points, little changed compared with the third quarter of 2024.
- The loan to share ratio stood at 83.7% in the third quarter of 2025, down from 84.3% in the third quarter of 2024.
- The credit union system’s net worth ratio was 11.24% in the third quarter of 2025, compared with 10.94% one year earlier. Note that beginning in 2023Q1, this ratio excludes the Current Expected Credit Loss (CECL) transition provision.
- The net interest margin for federally insured credit unions was $79.5 billion at an annual rate in the year to date through the third quarter of 2025, or 3.38% of average assets. “That compares with $70.5 billion at an annual rate, or 3.09% of average assets, in the year to date through the third quarter of 2024,” NCUA said.
- The return on average assets for federally insured credit unions was 81 basis points at an annual rate in the year to date through the third quarter of 2025, compared with 69 basis points in the same period a year earlier. The median return on average assets across all federally insured credit unions was 76 basis points, up 12 basis points from a year earlier.
- The number of federally insured credit unions declined to 4,331 in the third quarter of 2025, from 4,499 in the third quarter of 2024. In the third quarter of 2025, there were 2,715 federal credit unions and 1,616 federally insured, state-chartered credit unions. “The year-over-year decline is consistent with long-running industry consolidation trends,” the agency stated.
- The number of complex federally insured credit unions (those with total assets greater than $500 million) rose to 736 from 719 one year earlier.
- 449 CUs opted into the Complex Credit Union Leverage Ratio (CCULR) framework with an average CCULR of 12.07%.
- 287 CUs reported under the Risk-Based Capital (RBC) framework with an average RBC ratio of 15.41%.
- Federally insured credit unions added 3.1 million members over the year, and credit union membership in these institutions reached 145.0 million in the third quarter of 2025, according to the agency.
Balance Sheet Details
Additional balance sheet details include:
Investments
- Cash declined by $2.1 billion, or 1.1%, to $183.7 billion. Total investments rose $8.5 billion, or 2.2%, over the year to $400.7 billion in the third quarter of 2025.
- Investments with maturities less than or equal to one year declined by $2.8 billion, or 2.7%, to $101.9 billion.
- Investments with maturities of one to three years fell by $3.0 billion, or 2.8%, to $106.2 billion.
- Investments with maturities of three to five years increased $13.2 billion, or 17.2%, to $90.0 billion.
- Investments with maturities of five to 10 years rose by $2.4 billion, or 2.8%, to $85.6 billion. Investments with maturities greater than 10 years declined by $1.1 billion, or 6.1%, to $17.0 billion.
Loans
- Total loans outstanding increased $72.3 billion, or 4.4%, over the year to $1.70 trillion. Growth across major categories was mixed, NCUA said.
- Loans secured by 1- to 4-family residential properties increased $53.1 billion, or 7.2%, to $789.5 billion in the third quarter of 2025.
- Auto loans fell $3.4 billion, or 0.7%, to $482.4 billion. Used auto loans grew by $1.3 billion, or 0.4%, to $320.9 billion, while new auto loans declined by $4.6 billion, or 2.8%, to $161.4 billion.
- Credit card balances expanded by $2.9 billion, or 3.5%, to $86.0 billion.
- Non-federally guaranteed student loans edged down $0.4 billion, or 6.3%, to $6.7 billion.
- Commercial loans excluding unfunded commitments increased $19.6 billion, or 11.6%, over the year to $188.0 billion in the third quarter of 2025.
Delinquencies
- The delinquency rate at federally insured credit unions was 95 basis points in the third quarter of 2025, up four basis points compared with the third quarter of 2024.
- The delinquency rate on non-commercial real estate loans was 78 basis points in the third quarter of 2025, nine basis points higher than in the third quarter of 2024.
- The credit card delinquency rate fell by 12 basis points to 204 basis points over the year ending in the third quarter of 2025.
- The auto loan delinquency rate edged down 3 basis points over the year to 87 basis points.
- The delinquency rate for commercial loans excluding unfunded commitments was 109 basis points in the third quarter of 2025, up 19 basis points from a year earlier.
- The net charge-off ratio for all federally insured credit unions was 77 basis points in the third quarter of 2025, little changed compared with the third quarter of 2024.
Liabilities and Net Worth
- Total shares and deposits grew by $99.0 billion, or 5.1%, over the year to $2.03 trillion in the third quarter of 2025. Regular shares increased by $13.2 billion, or 2.4%, to $566.7 billion. Other deposits grew by $67.4 billion, or 6.7%, to $1.08 trillion, led by share certificate accounts, which grew $38.4 billion, or 7.0%, over the year to $589.5 billion.
- The credit union system’s net worth increased by $16.8 billion, or 6.6%, over the year to $269.6 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 11.24% in the third quarter of 2025, up from 10.94% one year earlier. Note that beginning in 2023Q1, this ratio excludes the CECL transition provision.
- The net worth ratio for prompt corrective action was 11.36% in the third quarter of 2025. This ratio considers the CECL Transition Provision, as applicable. The calculation can be found on Schedule G of the 5300 Call Report; see Account 998.
Income Statement Details
- Net income for federally insured credit unions in the year to date through the third quarter of 2025 totaled $19.1 billion at an annual rate, up $3.3 billion, or 21.0%, from the same period in 2024.
- Interest income rose $8.7 billion, or 7.6%, to $122.7 billion at an annual rate. Non-interest income declined by $0.3 billion, or 1.0%, to $26.7 billion at an annual rate, reflecting a decrease in gains, losses, and other non-interest income.
- Interest expense totaled $43.2 billion at an annual rate in the year to date through the third quarter of 2025, down $0.4 billion, or 0.8%, from one year earlier. Non-interest expense grew $4.7 billion, or 6.9%, to $73.2 billion at an annual rate in the year to date through the third quarter of 2025. Rising employee compensation and benefits, which were up $2.6 billion, or 7.1%, accounted for a little over half of the increase in non-interest expenses, NCUA said.
- The aggregate net interest margin widened by $9.0 billion, or 12.8%, to $79.5 billion at an annual rate in the year to date through the third quarter of 2025.
- The credit union system’s provision for loan and lease losses or credit loss expense increased $0.7 billion, or 5.2%, over the year to $13.9 billion at an annual rate in the year to date through the third quarter of 2025.
Performance by Asset Category
As NCUA noted, consistent with long-running trends, credit unions with assets of at least $1 billion reported the strongest growth in shares, loans, membership, and net worth over the year ending in the third quarter of 2025.
According to the agency:
- The number of federally insured credit unions with assets of at least $10 billion held at 21 in the third quarter of 2025 compared with the third quarter of 2024. These 21 credit unions held $603.0 billion in assets, or 25% of total system assets. Credit unions in this category reported loan growth of 5.8% over the year. Membership rose 4.1%. Net worth increased 5.7%.
- The number of federally insured credit unions with assets of at least $1 billion but less than $10 billion increased to 438 in the third quarter of 2025 from 423 in the third quarter of 2024. These 438 credit unions held $1.3 trillion in assets, or 53% of total system assets. Credit unions in this category reported loan growth of 6.3% over the year. Membership rose 4.5%. Net worth increased 9.4%.
- The number of federally insured credit unions with assets of at least $500 million but less than $1 billion increased to 277 in the third quarter of 2025 from 276 in the third quarter of 2024. These 277 credit unions held $198.4 billion in total assets, or 8% of total system assets. Credit unions in this category reported a 0.3% decrease in total loans outstanding over the year. Membership declined 2.0%. Net worth increased by 1.0%.
- The number of federally insured credit unions with at least $100 million but less than $500 million in assets fell to 1,042 in the third quarter of 2025 from 1,047 in the third quarter of 2024. These 1,042 credit unions held $240.2 billion in total assets, or 10% of total system assets. Credit unions in this category reported a 1.7% decrease in total loans outstanding over the year. Membership declined 3.7%, while net worth rose 3.0%.
- The number of federally insured credit unions with at least $50 million but less than $100 million in assets declined to 575 in the third quarter of 2025 from 619 one year earlier. These 575 credit unions held $41.9 billion in total assets, or 2% of total system assets. Credit unions in this category reported a 9.5% decline in total loans over the year. Membership declined 9.9%. Net worth fell 2.7%.
- The number of federally insured credit unions with assets of at least $10 million but less than $50 million declined to 1,158 in the third quarter of 2025 from 1,227 in the third quarter of 2024. These credit unions held $30.8 billion in assets, or 1% of total system assets. Credit unions in this category reported a 7.4% decrease in loans over the year. Membership declined 7.1%, while net worth rose 0.6%.
- The number of federally insured credit unions with less than $10 million in assets declined to 820 in the third quarter of 2025 from 886 in the third quarter of 2024. These credit unions held $3.4 billion in assets, or 0.1% of total system assets. Credit unions in this category reported a 9.5% decrease in loans over the year. Membership declined 6.4%. Net worth fell 4.2%.
