ALEXANDRIA, Va.—Federally insured credit unions generated $20.4 billion in annualized net income during the first quarter, a 30.5% jump from a year earlier, as widening margins and lower funding costs fueled a sharp earnings rebound despite continued pressure from loan delinquencies, NCUA reported.
New data released by NCUA show the industry's return on average assets climbed to 83 basis points from 67 basis points a year earlier, while net interest margin expanded to 3.44% from 3.24%. At the same time, the system's net worth ratio improved to 11.24%, its strongest level in several years.
The earnings gains came even as asset-quality challenges persisted. The overall delinquency rate rose to 85 basis points from 80 basis points a year earlier, with increases in real estate, commercial and credit card delinquencies. However, net charge-offs edged down to 81 basis points, suggesting credit losses may be stabilizing even as borrowers continue to face economic pressures.
Selected Performance Indicators
• Total assets in federally insured credit unions rose by $117 billion, or 4.9%, over the year ending in the first quarter of 2026, to $2.48 trillion.
• Total loans outstanding increased $76 billion, or 4.6%, over the year, to $1.73 trillion. The average outstanding loan balance in the first quarter of 2026 was $19,557, up $858, or 4.6%, from one year earlier.
• The delinquency rate at federally insured credit unions was 85 basis points in the first quarter of 2026, up 5 basis points from one year earlier. The net charge-off ratio was 81 basis points, down 2 basis points compared with the first quarter of 2025.
• Insured shares and deposits rose $76 billion, or 4.2%, over the year ending in the first quarter of 2026, to $1.91 trillion.
• The loan to share ratio stood at 81.5% in the first quarter of 2026, down from 81.8% in the first quarter of 2025.
• The credit union system’s net worth ratio was 11.24% in the first quarter of 2026, compared with 10.95% one year earlier. Note that beginning in 2023Q1, this ratio excludes the Current Expected Credit Loss (CECL) transition provision.
• Net income totaled $20.4 billion at an annual rate in the year to date through the first quarter of 2026, up $4.8 billion, or 30.5%, compared with the same period in 2025.
• The net interest margin for federally insured credit unions was $84.7 billion at an annual rate in the year to date through the first quarter of 2026, or 3.44% of average assets. That compares with $75.6 billion at an annual rate, or 3.24% of average assets, in the year to date through the first quarter of 2025.
• The return on average assets for federally insured credit unions was 83 basis points at an annual rate in the year to date through the first quarter of 2026, compared with 67 basis points in the same period a year earlier. The median return on average assets across all federally insured credit unions was 66 basis points, up 4 basis points from a year earlier.
• The number of federally insured credit unions declined to 4,250 in the first quarter of 2026, from 4,411 in the first quarter of 2025. In the first quarter of 2026, there were 2,672 federal credit unions and 1,578 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 2,379 in the first quarter of 2026 from 2,423 one year earlier. Their share edged up to 56% of all federally insured credit unions in the first quarter of 2026.
• The number of complex federally insured credit unions (those with total assets greater than $500 million) rose to 748 from 740 one year earlier.
• 464 opted into the Complex Credit Union Leverage Ratio (CCULR) framework with an average CCULR of 12.00%.
• 284 reported under the Risk-Based Capital (RBC) framework with an average RBC ratio of 15.45%.
• Federally insured credit unions added 2.5 million members over the year, and credit union membership in these institutions reached 145.8 million in the first quarter of 2026.
Balance Sheet Details
Assets
• Total assets in federally insured credit unions rose by $116.7 billion, or 4.9%, over the year to $2.48 trillion in the first quarter of 2026.
• Cash increased by $3.2 billion, or 1.5%, to $219.1 billion.
• Total investments rose $24.7 billion, or 6.3%, over the year to $415.8 billion in the first quarter of 2026.
• Investments with maturities less than or equal to one year increased by $3.5 billion, or 3.5%, to $104.6 billion.
• Investments with maturities of one to three years edged up by $0.1 billion, or 0.1%, to $105.8 billion.
• Investments with maturities of three to five years increased $15.8 billion, or 19.6%, to $96.3 billion.
• Investments with maturities of five to 10 years rose by $5.8 billion, or 6.8%, to $91.3 billion.
• Investments with maturities greater than 10 years declined by $0.5 billion, or 3.0%, to $17.7 billion.
• Total loans outstanding increased $75.8 billion, or 4.6%, over the year to $1.73 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 $57.1 billion, or 7.5%, to $814.0 billion in the first quarter of 2026.
• Auto loans contracted by $0.3 billion, or 0.1%, to $479.6 billion. Used auto loans grew by $3.3 billion, or 1.0%, to $321.3 billion, while new auto loans declined by $3.6 billion, or 2.2%, to $158.3 billion.
• Credit card balances expanded by $2.2 billion, or 2.6%, to $86.0 billion.
• Non-federally guaranteed student loans edged down $0.5 billion, or 7.2%, to $6.4 billion.
• Commercial loans excluding unfunded commitments increased $18.2 billion, or 10.2%, over the year to $196.3 billion in the first quarter of 2026.
• The delinquency rate at federally insured credit unions was 85 basis points in the first quarter of 2026, up 5 basis points compared with the first quarter of 2025.
• The delinquency rate on non-commercial real estate loans was 63 basis points in the first quarter of 2026, 9 basis points higher than in the first quarter of 2025.
• The credit card delinquency rate edged up 2 basis points over the year to 204 basis points in the first quarter of 2026.
• The auto loan delinquency rate was essentially unchanged at 80 basis points in the first quarter of 2026.
• The delinquency rate for commercial loans excluding unfunded commitments was 101 basis points in the first quarter of 2026, up 8 basis points from a year earlier.
• The net charge-off ratio for all federally insured credit unions was 81 basis points in the first quarter of 2026, down 2 basis points compared with the first quarter of 2025.
Liabilities And Net Worth
• Total shares and deposits grew by $102.3 billion, or 5.1%, over the year to $2.12 trillion in the first quarter of 2026. Regular shares increased by $14.6 billion, or 2.5%, to $590.4 billion. Other deposits grew by $67.8 billion, or 6.5%, to $1.11 trillion, primarily reflecting a $35.7 billion, or 6.3%, increase in share certificate accounts and a $30.5 billion, or 8.7%, increase in money market accounts.
• The credit union system’s net worth increased by $19.9 billion, or 7.7%, over the year to $279.2 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 11.24% in the first quarter of 2026, up from 10.95% one year earlier. Note that beginning in 2023Q1, this ratio excludes the CECL transition provision.
• The net worth ratio for prompt corrective action was 11.29% in the first quarter of 2026. This ratio considers the CECL Transition Provision, as applicable.
Income Statement Details
• Net income for federally insured credit unions in 2026 totaled $20.4 billion at an annual rate in the year to date through the first quarter of 2026, up $4.8 billion, or 30.5%, from the same period in 2025. Interest income rose $8.0 billion, or 6.7%, to $126.4 billion at an annual rate. Non-interest income rose by $0.9 billion, or 3.7%, to $25.5 billion at an annual rate, primarily reflecting an increase in other income.
• Interest expense totaled $41.8 billion at an annual rate in the year to date through the first quarter of 2026, down $1.1 billion, or 2.5%, from one year earlier. Non-interest expense grew by $5.5 billion, or 7.6%, to $76.9 billion at an annual rate in the year to date through the first quarter of 2026. Rising employee compensation and benefits, which were up $3.0 billion, or 7.8%, accounted for more than half of the increase in non-interest expenses.
• The aggregate net interest margin widened by $9.0 billion, or 11.9%, to $84.7 billion at an annual rate in the year to date through the first quarter of 2026.
• The credit union system’s provision for loan and lease losses or credit loss expense declined by $0.3 billion, or 2.4%, over the year to $12.8 billion at an annual rate in the year to date through the first quarter of 2026.