Data through June 30, 2025 . All figures reflect the universe of 4,370 federally insured credit unions reporting for the quarter. Q2 income-based ratios are annualized (×2). Growth rates are quarter-over-quarter.
Q2 Annualization
Q2 income-based ratios (ROAA, NIM, NCO ratio) annualize the half-year YTD figure by ×2. They are not directly comparable to a Q1 reading (annualized ×4 off a single quarter); the year-over-year change is the cleaner comparison.
Up 68 bps year-over-year; equity grew 11.1% as the AFS markdown reversal continued
Net worth ratio at 9.97%, approaching 10%:The system net worth ratio rose 22 bps QoQ to 9.97% as of 6/30/2025, within a fraction of the 10% line and 68 bps above year-ago levels. Equity continued to outrun the balance sheet — up 11.1% year-over-year against 3.6% asset growth — as the unrealized AFS securities loss kept unwinding. The regulatory PCA net worth ratio stood at 11.21%, up 16 bps year-over-year. The tier spread is unchanged in shape: 13.5% at the under-$100M cohort, 9.1% at the over-$10B cohort.
Up 11 bps QoQ as the Q1 seasonal cure reversed; up 6 bps year-over-year
Delinquency rebounds to 0.91%:The 60+ day delinquency ratio climbed to 0.91% as of 6/30/2025, up 11 bps from Q1's seasonally depressed 0.81% — the expected post-refund reversal — and 6 bps above Q2 2024. The Q2-over-Q2 rise confirms the floor is ratcheting rather than holding. The over-$10B cohort reached 1.25%, the widest of any tier and 34 bps above the system; the mid-tiers sit near 0.76–0.82%. Annualized net charge-offs eased to 0.79%, down 4 bps QoQ, as the largest cohort's 1.33% loss rate moderated slightly.
Up 26 bps year-over-year; the margin recovery continues but the increment is shrinking
Annualized NIM at 3.28%, ROAA at 0.75%:The half-year net interest margin annualized to 3.28%, up 26 bps year-over-year. Annualized ROAA improved to 0.75%, 7 bps above a year ago, as the margin tailwind finally outpaced provisioning — half-year net income of $8.9 billion ran 13% ahead of H1 2024. The earnings dispersion remains the watch item: the $500M–$1B tier earned just 0.61%, the weakest cohort, while the over-$10B tier held 0.79% despite carrying the system's heaviest charge-offs. The margin level is healthy; the QoQ increment is the smallest of the recovery so far.
Reaccelerated from Q1's 0.85%; led by the $100M–$500M tier at 2.0%
Loans reaccelerated to 1.79% QoQ:System loans grew 1.79% quarter-over-quarter, more than double Q1's 0.85% pace as the spring lending season opened. The growth was broad this quarter: the $100M–$500M tier led at 2.0%, the over-$10B tier matched at 2.0%, and even the under-$100M cohort turned positive at 0.8% after a string of contractions. On a year-over-year basis loans rose 3.9%. Because lending outran deposits this quarter, the loans-to-assets ratio rose — the funding picture is covered below.
Up 81 bps QoQ as deposit growth stalled to 0.2% while loans grew 1.8%
The funding gap reopens: deposits flat, loans growing:Shares and deposits grew just 0.2% QoQ to $2.02 trillion as the Q1 seasonal surge gave way to the usual Q2 lull, while loans grew 1.8% — so the loans-to-assets ratio rose 81 bps to 70.7%. With retail deposits flat, credit unions leaned back on wholesale funding for the first time in over a year: borrowings ticked up 3.1% QoQ to $90.1 billion, though they remain 27% below year-ago levels. If deposit growth stays soft, the funding mix question carries into the second half.
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending June 30, 2025. Q2 income-based ratios are annualized (×2). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2025
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Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2025
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