The NCUA reported continued financial strength across the credit union system in its fourth-quarter 2025 state-level data release on Wednesday, though results varied widely by geography and institution size.
Median asset growth reached 3.3% year-over-year, a sharp improvement from 0.9% in 2024, while shares and deposits rose 2.9% at the median, signaling renewed balance sheet expansion across the industry.
Loan growth, however, remained modest at 0.7% at the median, reflecting a more cautious lending environment. The national loan-to-share ratio edged down to 70%, suggesting liquidity levels remain relatively strong.
Despite overall growth, the report highlighted a continuing divide within the industry. While total membership increased nationally, median membership declined by 0.5%, with about 55% of credit unions reporting fewer members than a year earlier. Smaller institutions, particularly those under $50 million in assets, were disproportionately affected.
Performance also varied significantly by state. Credit unions in New Hampshire and Maine led the nation in asset and deposit growth, while states like New Jersey and Washington, D.C. lagged or posted slight declines. Loan growth was strongest in Alaska and New Hampshire but fell in several states.
Credit quality showed slight deterioration, with the median delinquency rate rising to 72 basis points, though profitability improved. Median return on assets climbed to 72 basis points, and 88% of credit unions reported positive net income, up from 86% the prior year.
The data underscored a resilient but uneven operating environment, with growth returning but structural challenges, particularly around membership and smaller institutions, remaining front and center for credit union leaders.
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