Data through March 31, 2025 . All figures reflect the universe of 4,411 federally insured credit unions reporting for the quarter. Q1 income-based ratios are annualized (×4). Growth rates are quarter-over-quarter.
Q1 Annualization
Q1 income-based ratios (ROAA, NIM, NCO ratio) are annualized at 4× a single quarter, which amplifies one quarter of noise. Where a Q1 move looks large, weigh it against the year-over-year change, which the annualization does not distort.
Up 71 bps year-over-year; equity grew 10.7% as the AFS securities markdown began to reverse
Net worth ratio at 9.75%, equity up 10.7% YoY:The system net worth ratio rose 9 bps QoQ to 9.75% as of 3/31/2025, and sits 71 bps above year-ago levels. The faster mover is GAAP equity, up 10.7% year-over-year against 2.6% asset growth — the unrealized loss on available-for-sale securities that had depressed equity through the rate-hiking cycle was starting to unwind. The regulatory PCA net worth ratio, which excludes that AFS swing, stood at 11.07%, a steadier 24 bps above its year-ago level. Capital is thickest at the smallest credit unions (13.2% for the under-$100M tier) and leanest at the largest (8.9% for the over-$10B tier).
Down 18 bps QoQ on the seasonal Q1 cure, but up 2 bps from a year ago
Delinquency at 0.80% — seasonally lower, structurally flat-to-higher:The 60+ day delinquency ratio fell to 0.80% as of 3/31/2025, down 18 bps from year-end as tax-refund season cured early-stage past-dues. The seasonal dip flatters the number: the year-over-year reading is up 2 bps, so the underlying floor is not falling. The dispersion is wide — the over-$10B cohort carries a 1.13% rate, 33 bps above the system, while the mid-tiers sit near 0.66–0.71%. Annualized net charge-offs ran 0.83%, up 2 bps year-over-year, with the largest cohort absorbing 1.41% against roughly 0.48% at the smallest.
Up 24 bps year-over-year; the fifth straight quarterly gain in the margin recovery
Annualized NIM at 3.24%, ROAA flat at 0.67%:The single-quarter net interest margin annualized to 3.24%, up 24 bps year-over-year and extending the recovery off the late-2023 trough. Earnings did not follow: annualized ROAA was 0.67%, essentially flat against a year ago — but credit costs were not the reason. Soft fee income (down about 7% YoY) and higher operating expense (up 6%) absorbed the margin gain, while provision expense rose less than 4%. Q1 net income of $3.9 billion ran 4.6% ahead of Q1 2024. The cohort spread is narrow at the top and soft in the middle — the over-$10B tier earned 0.78% while the $500M–$1B tier earned just 0.50%, the weakest of any cohort.
Soft even for a seasonally slow first quarter; the under-$100M tier contracted 0.5%
Loans grew 0.85% QoQ:System loans grew 0.85% quarter-over-quarter — a slow start to the year, typical of Q1 seasonality but weak in level. Larger institutions did the lifting: the $1B–$10B cohort grew 1.2% while credit unions under $100M contracted 0.5%, continuing a run of negative loan growth at the smallest tier. On a year-over-year basis loans rose 3.3%. With deposits growing far faster this quarter (see Liquidity), the loans-to-assets ratio eased to 69.9%.
Down 143 bps QoQ as a 3.5% seasonal deposit surge outpaced 0.9% loan growth
Deposits surged 3.5% QoQ; borrowings fell 34% YoY:Shares and deposits grew 3.5% QoQ to $2.02 trillion — the seasonal tax-refund and bonus inflow — far outpacing loan growth and pulling the loans-to-assets ratio down 143 bps to 69.9%. Credit unions kept paying down wholesale funding: borrowings fell to $87.4 billion, down 9.4% in the quarter and 34% from a year earlier, as retail deposits replaced FHLB advances. Investments rose 2.4%. The largest credit unions still run the tightest liquidity; the smallest hold the most balance-sheet slack.
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending March 31, 2025. Q1 income-based ratios are annualized (×4). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q1 2025
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Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q1 2025
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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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