While Credit Union lending remains at strong levels, Forvis Mazars has observed certain factors that could create challenges in the future. In our latest report, Credit Union Performance Trends: Q1 FY 2025, Forvis Mazars explores National Credit Union Administration (NCUA) call report data (Form 5300 filers) to assist credit union industry executives in identifying significant financial trends that have developed in recent years, including:
- Annualized loan growth in the U.S. credit union system of 1.9% through the first quarter of 2025, led by loans and lines of credit (LOCs) for one- to four-family portfolios (first liens and junior liens).
- Credit unions with total assets below $10 billion loan portfolios continue to mostly consist of one-to four-family loans (first liens and junior liens). Commercial loans, secured by real estate and non-real estate, have increased by $33 billion from year-end 2022 to the first quarter of 2025.
- A dramatic rise in loan yields and funding costs.
- Asset quality metrics remain steady, although some weaknesses can be seen.
In addition, we provide our analysis of these trends, as well as offer three key recommendations designed to help credit union institutions navigate the current economic landscape and maintain robust financial health.
Chad Garber
National Credit Union Industry Leader
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Forvis Mazars understands that credit union executives need access to relevant peer data to help assess institutional performance. Download your complimentary copy of the full report today to better understand recent lending trends and the potential effects they may have on your institution. Plus, receive valuable asset size-specific benchmarking data.
