Credit Union Assets Climb $82B Despite Continued Weakness In Auto Lending

ALEXANDRIA, Va.– Credit union auto lending remained weak in the second quarter of 2025, with total vehicle loans falling by $6.5 billion—or 1.3%—to $483.5 billion, according to the NCUA’s latest system performance data.

The bulk of the decline came from new auto loans. Still, the broader picture for credit unions was far more positive, as total assets at federally insured institutions climbed by $82 billion, or 3.6%, in the second quarter, to $2.38 trillion. Total loans outstanding increased $64 billion, or 3.9%, over the year, to $1.68 trillion. Insured shares and deposits rose $71 billion, or 4.0%, over the year ending in the second quarter of 2025, to $1.83 trillion.

Return on average assets and net interest margin both increased.

“Over the last four quarters the credit union system saw solid growth in assets, loans, and deposits reflecting the viability and resilience of credit unions,” said Chairman Kyle Hauptman. “This upward trend is important as it signals a robust credit environment, enabling more credit union members and businesses to access funds for growth and investment. Also, strong deposit data enhances credit union liquidity and reinforces stability across the credit union system.”

Kyle Hauptman

Data highlights:

• The credit union system’s net worth ratio was 11.11% in the second quarter of 2025, compared with 10.84% one year earlier. Note that beginning in 2023 Q1, this ratio excludes the Current Expected Credit Loss (CECL) transition provision.
• Net income totaled $17.7 billion at an annual rate in the year to date through the second quarter of 2025, up $2.1 billion, or 13.2%, compared with the same period in 2024.
• The loan to share ratio stood at 83.1% in the second quarter of 2025, down from 84.0 % in the second quarter of 2024.
• The net interest margin for federally insured credit unions was $77.8 billion at an annual rate in the year to date through the second quarter of 2025, or 3.32% of average assets. That compares with $69.5 billion at an annual rate, or 3.05% of average assets, in the year to date through the second quarter of 2024.
• The return on average assets for federally insured credit unions was 76 basis points at an annual rate in the year to date through the second quarter of 2025, compared with 69 basis points in the same period a year earlier. The median return on average assets across all federally insured credit unions was 71 basis points, up 10 basis points from a year earlier.
• Federally insured credit unions added 2.8 million members over the year, and credit union membership in these institutions reached 143.8 million in the second quarter of 2025.
• Cash increased by $2.3 billion, or 1.2%, to $192.0 billion.

Balance Sheet Details

Assets

• Total investments rose $9.0 billion, or 2.3%, over the year to $396.9 billion in the second quarter of 2025.
  • Investments with maturities less than or equal to one year declined by $1.5 billion, or 1.5%, to $101.4 billion.
  • Investments with maturities of one to three years rose by $1.1 billion, or 1.0%, to $105.7 billion.
  • Investments with maturities of three to five years increased $12.2 billion, or 16.4%, to $86.4 billion.
  • Investments with maturities of five to 10 years fell by $0.9 billion, or 1.0%, to $85.9 billion.
  • Investments with maturities greater than 10 years declined by $1.9 billion, or 9.7%, to $17.4 billion.
  • Total loans outstanding increased $63.6 billion, or 3.9%, over the year to $1.68 trillion. Growth across major categories was mixed.
    • Loans secured by 1- to 4-family residential properties increased $48.4 billion, or 6.7%, to $773.4 billion in the second quarter of 2025.
    • Auto loans fell $6.5 billion, or 1.3%, to $483.5 billion. Used auto loans contracted by $0.2 billion, or 0.1%, to $321.0 billion, while new auto loans declined by $6.3 billion, or 3.7%, to $162.5 billion.
    • Credit card balances grew by $3.1 billion, or 3.7%, to $85.1 billion.
    • Non-federally guaranteed student loans edged down $0.4 billion, or 6.3%, to $6.7 billion.
    • Commercial loans excluding unfunded commitments increased $18.8 billion, or 11.5%, over the year to $183.2 billion in the second quarter of 2025.
    • The delinquency rate at federally insured credit unions was 91 basis points in the second quarter of 2025, up 6 basis points compared with the second quarter of 2024.
      • The delinquency rate on non-commercial real estate loans was 74 basis points in the second quarter of 2025, 13 basis points higher than in the second quarter of 2024.
      • The credit card delinquency rate edged down by 5 basis points to 193 basis points over the year ending in the second quarter of 2025.
      • The auto loan delinquency rate was little changed at 82 basis points.
      • The delinquency rate for commercial loans excluding unfunded commitments was 106 basis points in the second quarter of 2025, up 12 basis points from a year earlier.
      • The net charge-off ratio for all federally insured credit unions was 79 basis points in the second quarter of 2025, unchanged compared with the second quarter of 2024. Liabilities and Net Worth

Liabilities And Net Worth

• Total shares and deposits grew by $94.4 billion, or 5.0%, over the year to $2.02 trillion in the second quarter of 2025. Regular shares increased by $8.9 billion, or 1.6%, to $573.0 billion. Other deposits grew by $72.5 billion, or 7.4%, to $1.06 trillion, led by share certificate accounts, which grew $49.0 billion, or 9.3%, over the year to $577.2 billion.
• The credit union system’s net worth increased by $15.3 billion, or 6.2%, over the year to $264.2 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 11.11% in the second quarter of 2025, up from 10.84% one year earlier.
  • The net worth ratio for prompt corrective action was 11.23% in the second 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. iii Income Statement Details

Income Statement Details

• Net income for federally insured credit unions in the year to date through the second quarter of 2025 totaled $17.7 billion at an annual rate, up $2.1 billion, or 13.2%, from the same period in 2024. Interest income rose $8.6 billion, or 7.7%, to $120.9 billion at an annual rate. Non-interest income declined by $1.0 billion, or 3.8%, to $26.0 billion at an annual rate, largely reflecting a decrease in other non-interest income.
• Interest expense totaled $43.0 billion at an annual rate in the year to date through the second quarter of 2025, up $0.3 billion, or 0.7%, from one year earlier. Non-interest expense grew $4.6 billion, or 6.8%, to $72.4 billion at an annual rate in the year to date through the second quarter of 2025. Rising employee compensation and benefits, which were up $2.5 billion, or 6.9%, accounted for a little over half of the increase in non-interest expenses.
• The aggregate net interest margin widened by $8.3 billion, or 11.9%, to $77.8 billion at an annual rate in the year to date through the second quarter of 2025.
• The credit union system’s provision for loan and lease losses or credit loss expense increased $0.6 billion, or 4.6%, over the year to $13.6 billion at an annual rate in the year to date through the second 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 second quarter of 2025.
• The number of federally insured credit unions with assets of at least $10 billion edged up to 22 in the second quarter of 2025 from 21 in the second quarter of 2024. These 22 credit unions held $607.5 billion in assets, or 26% of total system assets. Credit unions in this category reported loan growth of 7.6% over the year. Membership rose 5.9%. Net worth increased 7.2%.
• The number of federally insured credit unions with assets of at least $1 billion but less than $10 billion increased to 433 in the second quarter of 2025 from 421 in the second quarter of 2024. These 433 credit unions held $1.3 trillion in assets, or 53% of total system assets. Credit unions in this category reported loan growth of 4.6% over the year. Membership rose 3.1%. Net worth increased 7.8%.
• The number of federally insured credit unions with assets of at least $500 million but less than $1 billion increased to 284 in the second quarter of 2025 from 276 in the second quarter of 2024. These 284 credit unions held $203.4 billion in total assets, or 9% of total system assets. Credit unions in this category reported a 1.1% increase in total loans outstanding over the year. Membership declined 0.7%. Net worth increased by 3.2%.
• 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 second quarter of 2025 from 1,058 in the second quarter of 2024. These 1,042 credit unions held $239.1 billion in total assets, or 10% of total system assets. Credit unions in this category reported a 3.7% decrease in total loans outstanding over the year. Membership declined 4.8%, while net worth rose 1.4%.
• The number of federally insured credit unions with at least $50 million but less than $100 million in assets declined to 581 in the second quarter of 2025 from 622 one year earlier. These 581 credit unions held $42.3 billion in total assets, or 2% of total system assets. Credit unions in this category reported an 8.9% decline in total loans over the year. Membership declined 9.8%. Net worth fell 1.5%.
• The number of federally insured credit unions with assets of at least $10 million but less than $50 million declined to 1,178 in the second quarter of 2025 from 1,236 in the second quarter of 2024. These credit unions held $31.3 billion in assets, or 1% of total system assets. Credit unions in this category reported a 6.8% decrease in loans over the year. Membership declined 5.8%, while net worth rose 1.4%.
• The number of federally insured credit unions with less than $10 million in assets declined to 830 in the second quarter of 2025 from 899 in the second quarter of 2024. These credit unions held $3.5 billion in assets, or 0.1% of total system assets. Credit unions in this category reported an 11.1% decrease in loans over the year. Membership declined 7.3%. Net worth fell 5.7%.