WASHINGTON–While the overall numbers for credit unions look good according to new NCUA data, in the year ending with the third quarter CUs below $1 billion in assets posted negative growth through the third quarter.
As NCUA stated in releasing its Third Quarter 2025 NCUA Quarterly Data Summary Report, “consistent with long running trends,” the majority of credit unions, which are below that asset threshold, are negative when it comes to loan an membership growth.
Curt Long, chief economist with America’s Credit Unions, called the results “solid,” but acknowledged there are “stresses” among smaller credit unions.
Long attributed the negative numbers to the cumulative impact of regulations, as well as to the higher-rate environment.
Potential Relief Coming
Asked by the CU Daily whether he is concerned about the poor numbers posted by the vast majority of credit unions, Long said the lending environment “is not very good right now, even for larger credit unions. Their growth is not as strong as what you would ordinarily see in other environments.”
Long said credit unions could get some relief should the Federal Reserve again lower rates when it adjourns its Federal Open Markets Committee meeting on Wednesday.
“But rates as a whole are at a place where they’re restraining economic growth, so it’s just not a great environment for growth right now,” Long said.
Rate Cut Would ‘Help’
But will a rate reduction be enough to turn the negative numbers being posted by credit unions below $1 billion in assets into positive numbers?
“It’s really the growth area that’s kind of lagging, and I think a lower rate environment would probably help their overall financial performance,” said Long. “In particular, it would help with growth.
