Data through December 31, 2025 . All figures reflect the universe of 4,374 federally insured credit unions reporting for the quarter. Income-based ratios (ROAA, NIM, NCO ratio) reflect full-year figures — Q4 data is not annualized. Growth rates are quarter-over-quarter.
Where the industry stands as of 12/31/2025:The credit union system closed 2025 at $2.46 trillion in assets, with full-year net income of $18.9 billion — a 30% increase over 2024's $14.5 billion. The net worth ratio reached 10.36%, the highest reading in the 12-quarter dataset, as four consecutive quarters of earnings retention rebuilt capital that had been diluted through the 2023–2024 deposit surge. But the credit quality picture has crossed a threshold: the 60+ day delinquency ratio breached 1.00% for the first time in the dataset, reaching 1.02%, and the over-$10B cohort is now carrying a 1.49% rate — 46 basis points (bps) above the system average and widening. Net interest margin (NIM) continued its steady eight-quarter expansion to 3.34%, though ROAA dipped slightly to 78 bps as provision expense consumed a growing share of the margin improvement.
336 basis points above the 7.00% well-capitalized threshold; highest in the dataset
Capital at its strongest level in the dataset:The system-wide net worth ratio rose 11 bps QoQ to 10.36% as of 12/31/2025, the highest reading in the 12-quarter window and the fourth consecutive quarterly increase. Full-year net income of $18.9 billion — up 30% year-over-year — drove the capital build. Credit unions under $100M carry the thickest buffers at 13.9%, while the over-$10B cohort sits at 9.5%.
Breaches 1.00% for the first time in the dataset; over-$10B cohort at 1.49%
The 1% threshold has been crossed:The 60+ day delinquency ratio reached 1.02% as of 12/31/2025, up 8 bps from 3Q25's 0.94% and crossing the 1.00% mark for the first time in the 12-quarter dataset. This is the third consecutive quarterly increase. The over-$10B cohort is carrying a 1.49% delinquency ratio — 46 bps above the system average and the widest spread in the dataset. Net charge-offs came in at 77 bps for the full year, essentially unchanged from 2024's 79 bps.
The year-over-year trajectory confirms the structural nature of the deterioration: the 4Q25 reading of 1.02% compares to 0.97% in 4Q24 and 0.83% in 4Q23. The seasonal sawtooth pattern remains visible — Q1 dips, Q4 peaks — but the peaks are ratcheting higher each year. The over-$10B cohort's 1.49% rate reflects its outsized consumer lending exposure, particularly indirect auto and credit card portfolios where delinquency migration has been most pronounced.
Highest in the dataset; eighth consecutive quarterly increase
Margin expansion continues, but ROAA dips as provisions absorb the gains:Full-year NIM reached 3.34%, up 1 bps from 3Q25's 3.33% and the eighth consecutive quarterly increase since the 2.97% trough in 4Q23. The margin recovery is now well-established — NIM has risen 37 bps from the bottom. But ROAA slipped 2 bps QoQ to 78 bps as provision expense continued to grow, absorbing the margin improvement. Full-year net income of $18.9 billion still represents a strong year — 30% above 2024's $14.5 billion — driven by the combination of expanding margins and a larger asset base.
The $500M–$1B tier remains the relative earnings laggard at 70 bps ROAA, while the over-$10B cohort leads at 81 bps despite carrying the system's highest delinquency. The Q4 figures are full-year and not annualized, making them the cleanest year-over-year comparison point in the dataset.
Loan growth reaccelerates to close the year:System loans grew 1.97% quarter-over-quarter in 4Q25, the second strongest reading in the dataset (behind 2Q23's 2.21%). The $1B–$10B cohort led at 2.66% QoQ, the fastest growth of any tier in the quarter. Credit unions under $100M continued to contract at -0.33%, extending the secular trend of lending market share consolidation toward larger institutions.
The loans-to-assets ratio dipped slightly to 70.69% from 70.97%, as share growth of 2.64% outpaced loan growth for the first time since Q1 2025. Full-year loan growth (comparing 4Q25 to 4Q24 outstanding balances) reflects a 4.8% expansion — a healthy pace that exceeds 2024's rate but raises questions about credit quality given the simultaneous delinquency deterioration.
Down 28 bps QoQ as deposit growth outpaced lending
Year-end deposit inflows ease the funding picture:Shares and deposits grew 2.64% QoQ to $2.09 trillion, outpacing the 1.97% loan growth and pulling the loans-to-assets ratio down 28 bps to 70.69%. Borrowings declined to $83.3 billion from $88.3 billion — the lowest level in a year — as institutions used the deposit inflow to reduce wholesale funding. The year-end deposit surge is a typical seasonal pattern but a welcome one after the flat 2Q25 that had raised funding concerns.
The loans-to-assets ratio remains elevated by historical standards but is no longer climbing. The largest credit unions continue to run the tightest liquidity at 73.3%, while institutions under $100M sit at 52.3%. The $5 billion decline in borrowings is a favorable development — less reliance on wholesale funding reduces interest expense and improves the structural funding profile.
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending December 31, 2025. Q4 income-based ratios reflect full-year figures (not annualized). Growth rates are single-quarter (QoQ).
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Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q4 2025
This table is optimized for interactive viewing and is not included in the PDF. View the full data at finasense.com or in the accompanying spreadsheet.
Pressure: Delinquency breaches 1% — The system-wide 60+ day delinquency ratio crossed the 1.00% mark for the first time in the dataset, reaching 1.02%. The over-$10B cohort's 1.49% is now 46 bps above the system average — the widest spread recorded. Year-over-year, 4Q25's 1.02% compares to 4Q24's 0.97% and 4Q23's 0.83%.
Favorable: Capital at cycle highs — The 10.36% net worth ratio is the highest in the dataset, the fourth consecutive quarterly increase, and 70 bps above year-ago levels. Strong earnings retention is rebuilding the buffers that were diluted during the 2023–2024 deposit surge.
Favorable: NIM expansion now eight quarters running — NIM reached 3.34%, up 37 bps from the 2.97% trough in 4Q23. The margin recovery has been steady and broad-based, though the pace of improvement slowed to 1 bps in 4Q25 — suggesting the expansion may be plateauing.
Watch: ROAA slips despite NIM gains — Full-year ROAA of 78 bps is respectable but dipped 2 bps QoQ as provision expense growth absorbed the margin improvement. The divergence between NIM (rising) and ROAA (flat-to-declining) signals that credit costs are becoming the binding constraint on profitability.
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FINASENSE is not affiliated with the National Credit Union Administration (NCUA). Financial data is sourced from NCUA 5300 Call Report filings as submitted by individual credit unions and is not guaranteed as to accuracy or completeness. Ratio definitions and account classifications reference the NCUA Financial Performance Report (FPR) Chart of Accounts. All aggregation, analysis, and derived metrics are independently computed by FINASENSE and may differ from NCUA-published figures. Interpretations reflect the views of FINASENSE and not those of the NCUA.
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