WASHINGTON—Federally insured credit unions posted a sharp rebound in profitability through the third quarter of 2025, with net income up 21% year over year to an annualized $19.1 billion, according to new NCUA data.
The increase—one of the strongest gains across the agency’s quarterly metrics—came as institutions benefited from rising interest income, wider net interest margins, and relatively stable credit costs.
The NCUA reported that Q3 data show interest income climbed 7.6% over the period while the systemwide net interest margin expanded nearly 13%, helping credit unions absorb higher operating expenses and modest increases in loan-loss provisioning. The earnings surge outpaced the credit union system’s 3.7% asset growth and came amid a mixed lending environment in which residential mortgage balances rose sharply, but auto lending weakened.
The industry’s aggregate net worth ratio also improved, reaching 11.24%—its strongest level in more than a year.
Balance Sheet Details
Assets
■ Total assets in federally insured credit unions rose by $86.3 billion, or 3.7%, over the year to $2.40 trillion in the third quarter of 2025.
■ 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.
■ Total loans outstanding increased $72.3 billion, or 4.4%, over the year to $1.70 trillion. Growth across major categories was mixed.
• 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.
■ The delinquency rate at federally insured credit unions was 95 basis points in the third quarter of 2025, up 4 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, 9 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.
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.
■ 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
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.
■ 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%.