While commercial 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: Q3 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 4.6% through the third quarter of 2025, led by loans and lines of credit (LOCs) for one- to four-family portfolios (first liens and junior liens) and commercial loans.
- 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 by non-real estate, have increased by $42 billion from year-end 2022 to the third quarter of 2025.
- A dramatic rise in loan yields and leveling off of funding costs.
- Asset quality metrics show mixed results, with 60-plus days delinquent loans increasing quarter-over-quarter, net charge-off (NCO) levels declining, and reserve levels slightly increasing.
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.
“Credit unions continue to demonstrate resilience in a dynamic economic environment, with steady loan growth and prudent reserve building. As we navigate rising delinquencies and evolving risk profiles, it’s essential to maintain disciplined loan pricing, proactively manage asset quality, and swiftly adapt to changes in funding costs. By embracing forward-looking risk management and leveraging actionable data, credit unions can position themselves for sustained financial health and confidently serve their members’ needs.”
Chad Garber
National Credit Union Industry Leader
Learn More in Our Full Report
Forvis Mazars understands that credit union executives need access to relevant peer data to help assess institutional performance.
In addition, we’re pleased to offer you a complimentary, customized report featuring your credit union’s unique performance metrics—allowing you to see how you stack up against credit unions of similar size.
Download your complimentary copy of the full report today to help you better understand recent performance trends, the potential effects they may have on your credit union, access valuable asset size-specific benchmarking data, and see how you can receive your own personalized benchmarking report!
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