As credit union leaders eye the pace of potential interest rate cuts by the Federal Reserve later this year, the U.S. credit union industry’s latest second-quarter 2025 trends provide context as it continues serving members in California, Nevada, and across the nation.

This week’s Callahan and Associates’ TrendWatch webinar revealed these and additional trends. You can view the presentation slides here or view the recap video/conversation here.

From June 30, 2024 – June 30, 2025 (year-over-year unless otherwise noted), U.S. credit unions experienced the following loan, deposit, investment, asset, liquidity, capital, and earnings activity that industry leaders can use as they strategically operate within the current environment:

U.S. Industry Highlights (Annualized)

By the second quarter of 2025:

• Deposits remained at a record $2.04 trillion, rising 5 percent (compared to 2.6 percent in the year-ago period prior).
• Assets remained at a record $2.4 trillion, rising 3.7 percent (compared to 3.5 percent in the year-ago period prior).
• Loans reached a record $1.7 trillion, rising 4 percent (compared to 3.6 percent in the year-ago period prior).
• Investments (including cash) reached $597 billion, rising 2.1 percent (compared to 2 percent in the year-ago period prior).
• Capital (retained earnings for net-worth purposes) rose to $266 billion, increasing 10.7 percent (compared to 10 percent in the year-ago period prior).
• Membership reached a record 145.2 million, rising 2 percent (compared to 2.4 percent in the year-ago period prior).

Member Trends (Annualized)

In the second-quarter 2025 (bold) versus second-quarter 2024:

• The membership growth rate in 2025 is the slowest in 14 years.
• Membership growth is below 3 percent in most states.
• The average member relationship is at the highest level ever.

Deposit Trends (Annualized)

In the second-quarter 2025 (bold) versus second-quarter 2024:

• Total deposit growth is trending higher (5 percent versus 2.6 percent).
• 3 percent versus 30.7 percent (certificates of deposit).
• -1.8 percent versus 1.4 percent (checking).
• 2 percent versus 3 percent (IRA/Keogh).
• 9 percent versus -5.5 percent (money market).
• -7.8 percent versus 5 percent (savings).
• Certificates of deposits (CDs) and money market accounts are leading annual share growth.
• Solid deposit growth is being experienced across the nation.
• The industry’s loan-to-share is down slightly versus second-quarter of last year.
• Credit unions added 2.8 million members over the past year, the slowest rate since 2014.
• Credit union members are using more credit union products than ever.

Loan Trends (Annualized)

In the second-quarter 2025 (bold) versus second-quarter 2024:

• Total loan growth is trending higher (4 percent versus 3.6 percent).
• 7 percent versus 20.8 percent (combined HELOCs/home equity loans).
• 6 percent versus 10.7 percent (business/commercial loans).
• 2 percent versus 2.7 percent (first mortgages).
• 7 percent versus 7.1 percent (credit cards).
• 0 percent versus -0.1 percent (used autos).
• -3.8 percent versus -4.3 percent (new autos).
• Loan originations rebounded from a slow 2024.
• Loan originations hit the highest level in over two years.
• Credit union market share is holding steady in 2025.
• Home equity and commercial loan balances are rising at a double-digit pace.
• First mortgage and used auto loans comprise over half of the industry’s loan portfolio.
• Credit card balances are growing, but members are using a lower percentage of available credit in 2025.
• Loan delinquencies moved higher while net charge-offs have flattened.

Earnings, Capital Trends, and Expenses (Annualized)

In the second-quarter 2025 (bold) versus second-quarter 2024:

• The industry’s higher loan interest income is driving revenue growth.
• Loan and investment-yield increases are outpacing the cost-of-funds uptick.
• The Net Interest Margin (NIM) is increasing faster than operating expense growth.
• Non-interest income saw an uptick after a first-quarter drop. This happened even as fee income continued to trend lower.
• Loan loss provision expenses moved higher.
• Margin growth pushed ROA (Return on Assets) higher. A wider margin drove the increase in ROA versus a year ago.
• The industry’s net worth and capital ratios moved higher.

Important Takeaways

Additional thoughts:

• Loan and savings growth is picking up in 2025 as credit unions focus on deepening member relationships in the midst of slower membership growth.
• Liquidity and capital positions are allowing credit unions to continue to support member needs in 2025, and many are looking for support.
• Engaging with and listening to members will reveal opportunities to deliver solutions that meet the unique needs of credit union members.
• How are credit unions engaging with members to better understand their needs?
• Where are credit unions’ greatest growth opportunities?
• Where are credit unions investing to deliver greater value to members?
• Are credit unions positioned to adapt to evolving member needs and preferences?
• How are credit unions ensuring that their teams have the skills to deliver an outstanding member experience?
• Industry averages are dominated by larger credit unions’ performance. The 22 largest credit unions (over $10 billion in assets) hold 25 percent of industry assets. The mean/average credit union in the country has $548 million in assets. Median = “middle” credit union performance for each metric. This is not always an accurate picture of performance for many credit unions. There are 4,341 active charters today, with the median credit union in the country having approximately $64 million in assets.

The Second Quarter 2025 TrendWatch webinar was presented by Washington, D.C.-based Callahan and Associates Chief Collaboration Officer Jay Johnson and Vice President Alexandra Gekas.