It’s reporting season, and Callahan’s FirstLook provides an early look at credit union data. Looking for crucial insight about quarterly performance results weeks before the official data release from the NCUA? Callahan & Associates has you covered. Catch up on the latest trends below or dive deeper into the trends that matter to you with Peer Suite, Callahan’s online performance benchmarking tool. Schedule your demo today.
According to this quarter’s FirstLook performance figures, what’s notable about second quarter performance? And what does it suggest about today’s trends?
08.08.25 Update
- In the past year, credit union capital balances increased10.7% and comprised 11.1% of total assets at midyear. Better earnings, mainly from increasing interest income, underpinned capital growth. Slower asset growth helped capital ratios. Strong capitalization presents opportunities for reinvestment in areas such as branch expansion, technology, service teams, and member education. It also provides a safety net for the institution should tougher times emerge.
- Delinquency increased to 0.90%, up 6 basis points annually and 11 quarter-over-quarter. First mortgage delinquency recorded the largest increase — 24 basis points quarter-over-quarter. This is possibly a worrisome trend, as mortgages are usually the last loan type to go delinquent. Commercial delinquency rose 13 basis points, whereas auto loans increased just 2. Perhaps surprisingly, credit card delinquency improved by 8 basis points. In accordance with the slight increase in delinquency, loan loss provisions rose slightly to 0.58% of assets, aligning with seasonal expectations.
- Liquidity signals are mixed. Core deposits grew even as certificates declined in popularity. Lending was up slightly, especially in real estate, and the loan-to-share ratio increased to 83.1%. That’s up from last quarter but down from last year. Cash-to-assets, the purest form of liquidity, fell, and borrowings increased slightly. Overall, liquidity is OK. Loan demand isn’t all that strong, and credit unions aren’t feeling the pressure to pay up for new funds; instead, they’re holding out for Federal Reserve rate decisions in September.
Strong capitalization presents opportunities for reinvestment and also provides a safety net for the institution should tougher times emerge. Data as of 08.08.25.
As of Aug. 8, 2025, Callahan's FirstLook program represents more than 99% of the industry.
Although members continue to seek financial help for everyday needs, discretional purchases are falling as Americans feel the pinch of high prices.Data as of 08.05.25.
As of Aug. 5, 2025, Callahan's FirstLook program represents 99% of the industry. Two new credit unions have crossed $10 billion in assets: Congratulations Ent Credit Union and United Nations FCU.
Top-line performance metrics show year-over-year growth for the industry as credit unions continue to provide affordable products and services to members. Data as of 07.31.25.
As of July 31, 2025, Callahan's FirstLook program represents nearly 70% of the industry. Dive deeper into the trends that matter to you with Peer Suite, Callahan's online performance benchmarking tool.
08.05.25 Update
- Total loans grew 4.0% year-over-year. Other real estate (mostly HELOCs) clocked in at 16.7% while the commercial portfolio posted 11.6% growth. Most notably, first mortgage balances grew 4.2% in a clear uptick from the past few years.
- With the exception of credit cards — which were up 3.7% — consumer lending has decreased. Student lending was down 5.2% at midyear. Auto lending was down 1.3% overall, with new auto lending falling 3.8% and used auto remaining essentially unchanged.
- Share growth was up 5.0% year-over-year thanks largely to members’ dividend-seeking behavior. Certificates grew was 9.3% while money market accounts grew 6.9%. Take note, however, that 9.3% is the slowest rate of growth in years for certificates. Given lower loan demand, institutions are under little pressure to compete for deposits and are letting expensive rate promotions expire.
- The net interest margin continues to widen. It climbed to 3.32% in the second quarter of 2025 from 3.05% one year ago. Given the softened competition for certificates, interest expense was down from last year. Interest income, however, was up over the same time period thanks to elevated interest rates.
- Operating expenses were up 6.80% from last year and represented 3.10% of assets as of June 30. Employee compensation, the largest driver, was up 5.3%.
07.31.25 Update
- Assets are set to climb 3.6% from this time last year, faster than last quarter’s 2.7% annual growth. Loans are on track to grow 4.0% and shares 5.0%, both up from last quarter.
- Membership growth is coming in slightly slower than last quarter — 2.0% at midyear versus 2.1% in the first quarter. Overall, the industry has added more than 2.8 million members. Of note, the slowdown in member growth is at least partially the result of credit unions pulling back from indirect lending to focus more on serving core members. Early data indicates indirect loan dollars outstanding are down 1.1% compared to last quarter.
- Watch for a slight deterioration in asset quality. Without the seasonal budgetary benefits of tax refunds, total delinquency is on track to rise 7 basis points quarter-over-quarter; net charge-offs are set to fall 4 basis points. This is a tough environment for balance sheets, but credit unions have the opportunity to stand apart from the pack by helping members who are truly in need.
- At 0.74%, ROA is up 7 basis points from last quarter and 5 basis points from this time last year. Thanks to interest income, net income growth of 10.5% is outpacing average asset growth year-over-year. Non-interest income, meanwhile, is set to fall to 1.11%, that’s 8 basis points per average asset dollar lower than this time last year.
Trendwatch 2Q25. Explore second quarter performance trends and learn about their impact on the industry today with Callahan & Associates. Callahan hosts and industry guest presenters highlight where credit unions are excelling, where challenges are emerging, and how peers are responding. Don’t wait to gain key benchmarks, strategic takeaways, and insights to navigate the rest of 2025. Watch today.
See You Next Quarter! CreditUnions.com updates this page with the freshest FirstLook credit union performance data every quarter, so don’t forget to come back for insights into the third quarter of 2025.