ALEXANDRIA, Va.—Federally insured credit unions closed 2025 with stronger earnings, rising capital and continued membership growth, even as loan growth moderated and industry consolidation accelerated, according to new data released by NCUA.
The agency’s fourth-quarter performance report shows credit union net income jumped 31.5% to $18.8 billion in 2025, one of the most significant year-over-year increases in recent years, while the system’s return on assets rose to 79 basis points, up from 63 basis points in 2024. Net interest margin also expanded sharply, climbing to $80.4 billion, or 3.39% of average assets, as institutions benefited from higher yields on loans and investments.
At the same time, the industry continued to expand its footprint. Credit union membership grew by 2.4 million during the year to reach 144.7 million, while total assets increased 5.4% to $2.43 trillion. Lending also continued to grow, though at a more moderate pace, with total loans rising 4.6% to $1.72 trillion.
Beneath those headline numbers, however, the report also reflects several shifts inside credit union balance sheets. Mortgage lending and commercial loans drove most of the growth, while auto lending and student loans declined, and delinquencies edged higher to 103 basis points year over year. Meanwhile, the number of federally insured credit unions fell to 4,287, down from 4,455 a year earlier, underscoring the industry’s long-running consolidation trend.
Selected Performance Indicators
- Total assets in federally insured credit unions rose by $126 billion, or 5.4%, over the year ending in the fourth quarter of 2025, to $2.43 trillion.
- Total loans outstanding increased $76 billion, or 4.6%, over the year, to $1.72 trillion. The average outstanding loan balance in the fourth quarter of 2025 was $19,397, up $984, or 5.3%, from one year earlier.
- The delinquency rate at federally insured credit unions was 103 basis points in the fourth quarter of 2025, up 5 basis points from one year earlier. The net charge-off ratio was 78 basis points, down 2 basis points compared with the fourth quarter of 2024.
- Insured shares and deposits rose $83 billion, or 4.7%, over the year ending in the fourth quarter of 2025, to $1.86 trillion.
- The loan to share ratio stood at 83.2% in the fourth quarter of 2025, down from 84.0% in the fourth quarter of 2024.
- The credit union system’s net worth ratio was 11.26% in the fourth quarter of 2025, compared with 11.07% one year earlier. Note that beginning in 2023Q1, this ratio excludes the Current Expected Credit Loss (CECL) transition provision.
- Net income totaled $18.8 billion in 2025, up $4.5 billion, or 31.5%, compared with 2024.
- The net interest margin for federally insured credit unions was $80.4 billion in 2025, or 3.39% of average assets. That compares with $71.2 billion at an annual rate, or 3.12% of average assets, in 2024.
- The return on average assets for federally insured credit unions was 79 basis points in 2025, compared with 63 basis points in 2024. The median return on average assets across all federally insured credit unions was 72 basis points, up 11 basis points from a year earlier.
- The number of federally insured credit unions declined to 4,287 in the fourth quarter of 2025, from 4,455 in the fourth quarter of 2024. In the fourth quarter of 2025, there were 2,686 federal credit unions and 1,601 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
- The number of credit unions with a low-income designation declined to 2,390 in the fourth quarter of 2025 from 2,425 one year earlier. Their share edged up to 56% of all federally insured credit unions in the fourth quarter of 2025.
- The number of complex federally insured credit unions (those with total assets greater than $500 million) rose to 739 from 728 one year earlier.
- 456 opted into the Complex Credit Union Leverage Ratio (CCULR) framework with an average CCULR of 12.04%.
- 283 reported under the Risk-Based Capital (RBC) framework with an average RBC ratio of 15.38%.
- Federally insured credit unions added 2.4 million members over the year, and credit union membership in these institutions reached 144.7 million in the fourth quarter of 2025.
Balance Sheet Details
Assets
- Total assets in federally insured credit unions rose by $125.7 billion, or 5.4%, over the year to $2.43 trillion in the fourth quarter of 2025.
- Cash increased by $18.2 billion, or 10.1%, to $198.4 billion.
- Total investments rose $19.8 billion, or 5.2%, over the year to $401.6 billion in the fourth quarter of 2025.
- Investments with maturities less than or equal to one year increased by $2.8 billion, or 2.8%, to $103.6 billion.
- Investments with maturities of one to three years edged up by $0.6 billion, or 0.6%, to $103.8 billion.
- Investments with maturities of three to five years increased $13.1 billion, or 17.1%, to $89.7 billion.
- Investments with maturities of five to 10 years rose by $1.4 billion, or 1.7%, to $86.2 billion.
- Investments with maturities greater than 10 years grew by $1.8 billion, or 11.1%, to $18.3 billion.
- Total loans outstanding increased $75.9 billion, or 4.6%, over the year to $1.72 trillion. Growth in real estate, commercial, and credit card loan balances was partly offset by declines in auto and student loan balances.
- Loans secured by 1- to 4-family residential properties increased $55.5 billion, or 7.4%, to $804.1 billion in the fourth quarter of 2025.
- Auto loans contracted by $1.3 billion, or 0.3%, to $480.1 billion. Used auto loans grew by $2.6 billion, or 0.8%, to $319.7 billion, while new auto loans declined by $3.8 billion, or 2.3%, to $160.4 billion.
- Credit card balances expanded by $2.6 billion, or 3.1%, to $87.8 billion.
- Non-federally guaranteed student loans edged down $0.4 billion, or 5.9%, to $6.5 billion.
- Commercial loans excluding unfunded commitments increased $18.9 billion, or 10.9%, over the year to $192.9 billion in the fourth quarter of 2025.
- The delinquency rate at federally insured credit unions was 103 basis points in the fourth quarter of 2025, up 5 basis points compared with the fourth quarter of 2024.
- The delinquency rate on non-commercial real estate loans was 88 basis points in the fourth quarter of 2025, 10 basis points higher than in the fourth quarter of 2024.
- The credit card delinquency rate was little changed at 215 basis points.
- The auto loan delinquency rate was 96 basis points in the fourth quarter of 2025, essentially unchanged from a year earlier.
- The delinquency rate for commercial loans excluding unfunded commitments was 98 basis points in the fourth quarter of 2025, up 13 basis points from a year earlier.
- The net charge-off ratio for all federally insured credit unions was 78 basis points in the fourth quarter of 2025, down 2 basis points compared with the fourth quarter of 2024.
Liabilities and Net Worth
- Total shares and deposits grew by $108.4 billion, or 5.5%, over the year to $2.07 trillion in the fourth quarter of 2025. Regular shares increased by $14.3 billion, or 2.6%, to $569.8 billion. Other deposits grew by $66.1 billion, or 6.4%, to $1.09 trillion, primarily reflecting a $36.3 billion, or 6.5%, increase in share certificate accounts and a $29.1 billion, or 8.6%, increase in money market accounts.
- The credit union system’s net worth increased by $18.7 billion, or 7.3%, over the year to $274.0 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 11.26% in the fourth quarter of 2025, up from 11.07% one year earlier. Note that beginning in 2023Q1, this ratio excludes the CECL transition provision.
- The net worth ratio for prompt corrective action was 11.31% in the fourth 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 2025 totaled $18.8 billion, up $4.5 billion, or 31.5%, from 2024. Interest income rose $8.4 billion, or 7.3%, to $123.6 billion. Non-interest income rose by $0.2 billion, or 0.6%, to $26.8 billion, primarily reflecting an increase in other income.
- Interest expense totaled $43.2 billion in 2025, down $0.8 billion, or 1.8%, from one year earlier. Non-interest expense grew $4.7 billion, or 6.8%, to $74.0 billion in 2025. Rising employee compensation and benefits, which were up $2.6 billion, or 7.2%, accounted for roughly half of the increase in non-interest expenses.
- The aggregate net interest margin widened by $9.2 billion, or 12.9%, to $80.4 billion in 2025.
- The credit union system’s provision for loan and lease losses or credit loss expense increased $0.1 billion, or 0.7%, over the year to $14.4 billion in 2025.