For years, credit union membership growth was one of the clearest signals of the movement’s strength. That momentum is beginning to shift.

Annual membership growth in the first quarter slowed to 1.81%; that’s one of the weakest levels in years. Some institutions even reported quarterly declines. Perhaps counterintuitively, though, this isn’t a story of disengagement. Consumers are still borrowing, saving, and opening accounts. What’s changed is how they build relationships.

Consumers are increasingly spreading their financial activity across multiple providers, making it harder for credit unions to capture primary relationships. At the same time, credit unions are pulling back from traditional acquisition channels like indirect auto lending, further reducing membership inflow.

Yet the industry is still growing. Loan and share growth remain relatively strong, thanks not to new members but deeper relationships with existing ones. As credit unions shift from growing headcount to fattening wallet share, they must focus on achieving PFI status as much as on attracting members in the first place.

MEMBER GROWTH VS. SHARE GROWTH VS. LOAN GROWTH
FOR U.S. CREDIT UNIONS | DATA AS OF 03.31.26
SOURCE: CALLAHAN & ASSOCIATES

• Membership growth in the first quarter of 2026 slowed to 1.81%, marking a steady decline from prior years.
• Loan growth has picked up after a sharp post-peak decline. It was 5.13% as of March 31, signaling steady borrowing demand.
• Share growth has normalized from elevated pandemic-era levels and has settled around 4.66%, reflecting a more typical deposit environment.
• Loans and shares are growing two to three times as fast as membership, indicating new members are no longer driving growth. Instead, the industry is shifting toward deeper relationships.

When members know you care, they stay. As financial relationships fragment across providers, the credit unions earning PFI status are building emotional trust as much as they’re competing on rates or products. Gallup research shows emotionally engaged members are 5.4 times more likely to stay and 2.5 times more likely to hold multiple products, exactly the depth of relationship credit unions need most right now. Learn more.

The post Where Have All The Members Gone? appeared first on CreditUnions.com.

CDFIs are mission-driven institutions focused on expanding access to affordable financial services in underserved communities. Certified by the U.S. Treasury, these institutions can be credit unions, loan funds, banks or bank holding companies, or venture capital funds. CDFI certification allows these institutions to access grants and funding that support lending, housing, and small business development.

A total of 362 credit unions, or roughly 8.2% of the industry, carry the CDFI designation, based on data from Callahan & Associates. Because this data relies on the 5300 Call Report, it reflects year-end reporting institutions but does not include Puerto Rican cooperativas; these are categorized by the CDFI Fund as credit unions but do not report to the NCUA. It also does not capture first quarter mergers or the newest CDFI certifications. As a result, this figure differs from the most recent CDFI Fund totals reported in January. According to Stacy Augustine, president of CU Strategic Planning, a Callahan company, the total number of CDFIs is currently in flux due to the ongoing recertification process and delayed updates from the CDFI Fund.

“The number of CDFI-certified credit unions is a bit of a moving target right now,” Augustine says. “The CDFI Fund has not released an updated list for several months, and we expect the next release to show a change in totals because the Fund has been processing recertification applications for all CDFIs.”

Despite the fact CDFI credit unions represent a relatively small share of all U.S. credit unions, they collectively serve 18.3 million members representing 12.6% of total membership nationwide. CDFIs credit unions are broadly distributed and span the full range of asset sizes, challenging the perception that mission-driven institutions are limited to smaller, community-based credit unions.

CDFI CREDIT UNIONS BY STATE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.25
SOURCE: CALLAHAN & ASSOCIATES

• CDFIs credit unions operate across 44 states, with the highest concentration, 33 credit unions, in California. These credit unions have a broad national footprint despite relatively low overall counts.
• The top five states account for nearly 20% of all members served by CDFI credit unions.
• CDFIs span a wide asset range. Berean Credit Union ($191K, Chicago, IL) has less than a million in assets, whereas Suncoast Credit Union ($19.7B, Tampa, FL) has nearly $20 billion, reinforcing that scale does not limit mission-driven impact.
• Distribution across size bands remains balanced, with 246 credit unions reporting less than $500 million in assets, 116 reporting more than $500 million in assets, and 78 reporting more than $1billion in assets.

MEMBERS SERVED BY CDFI CREDIT UNIONS BY STATE
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.25
SOURCE: CALLAHAN & ASSOCIATES

• Florida leads all states with 3.7 million members served by CDFI credit unions, followed by California at 2.3 million.
• Despite their total count, CDFIs credit unions serve more than one in eight members nationwide, underscoring their role.
• Overlap with other designations is significant. A full 94% of CDFI credit unions are also classified as a low-income credit union (LICU) and 97% hold multiple designations.

CDFI support built for credit unions. CU Strategic Planning is the leading provider of CDFI certification, grant writing, and compliance support for credit unions. By helping more than 200 credit unions achieve CDFI certification and securing more than $1 billion in grants, the company has empowered credit unions to fulfill their mission of serving low-income and underserved communities. Learn how CU Strategic Planning can help your credit union achieve success in community development.

The post CDFIs By The Numbers appeared first on CreditUnions.com.

But  with rate cuts beginning in the fourth quarter of 2025 and further easing expected through 2026, those conditions are shifting.

Asset yields are beginning to retreat just as competition for deposits intensifies — putting pressure on margins and raising a pressing question for the industry: what comes next for credit union earnings?

Credit Union Earnings Then And Now

To determine where earnings might go, it’s helpful to understand the primary drivers in today’s environment.

Increased interest rates have played an outsized role in supporting credit union performance in the past half-decade. Since the fourth quarter of 2020, the net interest margin has jumped from 2.82% to 3.39%, more than offsetting the rise in operating expenses and carrying earnings.

During that period, non-interest income dropped from 1.38% to 1.13% of assets, not because there was less of it but because assets grew faster.

EARNINGS MODEL COMPARISON EXPRESSED AS A % OF AVERAGE ASSETS
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.25
SOURCE: CALLAHAN & ASSOCIATES

If rates come down as expected, support from the net interest margin will normalize and the earnings model will start to rebalance. Expenses tend to be slow-moving, but revenue lines can shift quickly, making the composition of non-interest income more important than the level alone.

Unlike interest income, which largely follows rate cycles, non-interest income represents a set of levers credit unions can influence through pricing, product design, and member engagement. That makes it an important mechanism for sustaining earnings as margin support fades.

The Limits Of Public Reporting

Not all non-interest income behaves the same. Understanding how each component performs, and how that mix differs across credit union peers, is just as important as the total itself when navigating a new environment.

The 5300 Call Report groups non-interest income into broad categories like fee income and other operating income, which are useful for trend analysis but do not offer insight into what is driving change or how institutions are adapting. Such detail becomes even more important when margins tighten.

NON-INTEREST INCOME SOURCES
FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.25
SOURCE: CALLAHAN & ASSOCIATES

Comparing how loan late fees move with asset quality or how interchange tracks with member spending helps credit union leaders connect revenue performance to underlying member behavior and economic pressure. Without that context, similar top-line results can mask very different patterns in drivers across peers.

That level of analysis requires more detail than the call report provides. Participation in Callahan’s Non-Interest Income Study helps credit unions explore questions such as:

• How are peers adjusting NSF and overdraft strategies amid increased consumer scrutiny and regulatory focus?
• As mortgage activity picks back up, are credit unions reintroducing secondary market sales as a meaningful earnings lever or are they relying more heavily on retention?

The study breaks down non‑interest income into its component parts and allows leaders to compare patterns across peers to determine where revenue is gaining traction, where it is fading, and how they might need to adjust their own mix as margin support fades.

Do you want to take part in next year’s study. Callahan & Associates’ annual Non-Interest Income Study is the industry’s only comprehensive, participant‑reported analysis of NII performance nationwide. Participating credit unions gain insight into how high‑performing institutions structure successful NII strategies, helping leaders align decisions with both organizational goals and member needs. Looking for clarity, granularity, and benchmarking confidence not available through traditional reporting? Learn how to join the 2026 study.

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As credit union leaders turn their calendars deeper into 2026, the effects of interest rate changes are becoming more important. Rapidly rising rates the past few years have allowed credit unions to reprice their portfolios to a more favorable earnings position.

The structure of a credit union’s earnings model is central to how an institution fares in this changing environment. Credit unions that can capitalize on earnings-model flexibility during times of solid revenue growth typically are better positioned to weather storms in the future.

Net Interest Margin

At the center of that transition is the net interest margin. The primary driver of earnings in the past few quarters is also most directly affected by shifting interest rates. At 3.40%, margins remain at the industry’s highest level in the past two decades. In fact, margins outpace the operating expense ratio (as a percentage of average assets) by 27 basis points, continuing the largest and longest sustained gap of the past two decades.

CREDIT UNION MARGINS AND OPERATING COSTS
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

During a downward interest rate cycle, however, loans tend to reprice faster than shares, particularly for credit unions with higher concentrations of variable-rate or shorter duration assets.

Operating Expenses

Operating expenses tend to adjust slowly to external forces, as they’re driven by staffing, branch networks, and technology investments that typically don’t feel the immediate impacts of monetary policy shifts. Historically, operating expense ratios have not declined meaningfully during rate-cut cycles.

During the past few years, operating expense ratios have grown at a remarkably steady rate, generally tracking the pace of inflation nationally, which has been elevated. If margins start to contract, finding efficiency returns on the technical investments of the past few years will grow in importance.

Non-Interest Income

Non-interest income (NII) has steadily declined as a share of average assets in the past several years, most recently falling to 1.08%. As margins diminish, NII re-enters the earnings conversation as a stabilizing force. Unlike the net interest margin, NII is less directly tied to repricing dynamics and more influenced by member behavior, product penetration, and scale, a distinction that matters as earnings stability becomes harder to maintain through rates alone.

NON-INTEREST INCOME
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Credit unions that face a compressing net interest margin might wish to investigate greater income-stream diversification through CUSOs, interchange, secondary sales, or other routes.

Join Callahan’s Non-Interest Income Survey. Understanding where your non-interest income comes from, and how it compares to peers, is critical. Tap into a unique, non-public dataset built through voluntary data sharing and gain detailed insights that go far beyond what is available in the 5300 Call Report. Learn more today.

Looking forward to the rest of 2026, the earnings conversation ultimately converges on balance sheet flexibility. Credit unions will reshape portfolios in response to falling rates, as lower rates bring opportunities for cheaper financing and refinancing.

The challenge facing credit unions is not unfamiliar, but this environment is where the cooperative model shines —  when member focus is no longer a philosophy, but a financial choice.

Ready To Read The Full Story? Callahan clients can access the full version of this article right now on the client portal. Read it today. Not yet a client but looking for expert insights to help you adapt to change, develop your organization’s leaders, and stay at the forefront of industry trends? Connect with our team to learn more. 

The post Flexibility In The Earnings Model Matters More As Rates Turn appeared first on CreditUnions.com.

Callahan clients can access the full version of this article right now on the client portal. Read it today.

The difference between a credit union with $50 million, $500 million, or $5 billion in assets goes beyond dollars and cents. Asset size can shape how efficiently credit unions operate, how they lend, and ultimately how they serve their members. In an industry where the largest institutions hold a disproportionately large share of assets, looking only at overall averages risks masking how mid‑sized and smaller institutions perform.

For a more nuanced look at performance, look across not only key metrics but asset sizes. Comparing peer groups defined by asset size uncovers patterns and trade‑offs that rarely show up in aggregated industry reports — giving credit union leaders a clearer picture of where institutions at different size levels excel or struggle.

MEMBER GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

With the ability to leverage scale and resources, larger credit unions consistently attract more members. Smaller institutions — lacking the scale to keep up with digital banking innovations — have fallen behind, and rural communities — where smaller credit unions tend to concentrate — have increasingly lost population to more urban centers. Yet, these defenders of financial health continue to provide crucial product and service offerings tailored specifically to their membership’s needs, emphasizing the vital role they play in their communities.

Book Your Free Performance Analysis Session. Develop a clear picture of your credit union’s performance with a complimentary scorecard from Callahan & Associates. Fueled with your desired KPIs plus a few new ones we might suggest, you’ll be in a better position to benchmark against desired peer groups and share findings with your board. Contact Callahan today.

LOAN PORTFOLIO
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Examining the loan mix across asset tiers shows how credit unions fulfill the borrowing needs of their members. Smaller institutions carry a higher share of auto and consumer loans; mortgages and other long-term products comprise a smaller piece of the portfolio. As credit unions grow, expanded infrastructure, lending capacity, and product depth allow them to keep more of this activity in-house, increasing the share of mortgages, credit cards, and commercial loans in their portfolios.

Commercial lending peaks in the middle asset tiers where institutional bandwidth and local business relationships meet. It is a perfect snapshot of the credit union ecosystem in motion.

EFFICIENCY RATIO
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Smaller credit unions carry heavier operational loads because each branch and every employee represents a meaningful share of the total. Larger cooperatives spread their expenses across bigger membership bases and deeper balance sheets, giving them space to operate more efficiently.

Growing institutions are fueling a steady, systemwide march toward lower expense ratios, but that growth does present intangible costs. The branches and employees that make up a meaningful share of total expenses at smaller credit unions also make up a meaningful share of the member experience. Those personal connections can shrink even as fields of membership and institutions expand — it’s a delicate balance credit unions must strike.

Ready To Read The Full Story? Callahan clients may access this exclusive content within the client portal. Read more about these ratios, then dive deeper into lending performance, fee strategies, operating performance, and more. Not yet a client but looking for expert insights to help you adapt to change, develop your organization’s leaders, and stay at the forefront of industry trends? Connect with our team to learn more.

The post How Asset Size Shapes Credit Union Performance Across 3 Metrics appeared first on CreditUnions.com.

At the center of that shift is the core system. It is where data, delivery, and decision-making all connect. Choosing a provider today is no longer a purely technological choice; it is a strategic one that shapes how credit unions serve members, manage growth, and adapt to what comes next.

And as the market continues to consolidate, knowing who leads, who’s gaining ground, and who’s standing firm has never been more important.

Fewer Players, Bigger Plays

Consolidation continued through the first half of 2025, as the number of active credit unions fell by 171 in the past 12 months, from 4,631 to 4,460. Three new institutions entered the field, but mergers and closures once again outpaced new formations — a reminder that although the industry continues to evolve, scale and efficiency are increasingly driving its structure.

Even as the number of players shrinks, credit unions are serving more members than ever before. Total membership climbed by 2.7 million, or 1.9%, reaching a record 145 million by mid-2025. That steady growth reflects the continued appeal of cooperative banking, especially in an environment where consumers are seeking value, stability, and trust.

Financially, the movement remains strong. Shares increased 4.9%, or $95.1 billion, to reach $2.042 trillion. Loan balances grew 3.9%, or $63.2 billion, to $1.7 trillion, signaling ongoing confidence from both lenders and borrowers.

Competition for deposits remains intense, but credit unions continue to prove that loyalty and relationship-based service can drive growth even when pricing power is limited. There might be fewer players on the field, but they are making bigger plays.

MARKET SHARE FOR TOP 20 CORE PROVIDERS BY NUMBER OF CREDIT UNION CLIENTS
# REPRESENTS TOTAL CREDIT UNION CLIENTS | % REPRESENTS TOTAL MARKET SHARE^*
SOURCE: Callahan & Associates

The Giants Reposition

The same names continue to anchor the core processing landscape, but their footing looks a little different this year. Fiserv remains the market leader with 1,155 credit union clients, representing 25.9% of the industry, although its share slipped 118 basis points from the year prior. Jack Henry follows with 535 clients, 12.0% of the market, after gaining 25 basis points over the same period.

Together, the two serve 37.9% of all credit unions by client count. Their combined presence shapes much of the industry’s technological direction, but the dynamics between them tell a story of slow, deliberate repositioning rather than disruption.

Jack Henry continues to strengthen its grip among the largest institutions, serving 214 credit unions with more than $1 billion in assets, two more than last year. Fiserv has 153 in that group, up by one. In the $250 million to $1 billion range, the momentum swung in Jack Henry’s favor, which now leads with 211 clients compared to Fiserv’s 172, a decline of 21 for the long-time leader.

Fiserv still dominates the smaller asset tiers, where legacy relationships and multi-platform flexibility keep it deeply embedded in community institutions. But the market share data suggests that some of that loyalty is being tested, as credit unions weigh the value of scale and support against modernization and adaptability.

The hierarchy remains — but the ground beneath it is moving.

The Current Beneath The Core

The core market keeps evolving, even when the surface looks still. Credit unions continue to merge, modernize, and migrate, and those quiet shifts reveal where the current is heading.

Of the 174 credit unions that closed their doors in the past 12 months, 36 were Fiserv clients, representing 22.4% of all closures. Including those that switched providers, Fiserv ended the year down 99 total clients, the largest decline of any vendor. Still, it remains the market leader, serving more than a quarter of all credit unions nationwide.

Corelation again stood out on the growth side, adding 23 new credit unions to its KeyStone platform. The company now serves 211 institutions, lifting its market share by 67 basis points to 4.7%.

Across the broader market, of the 27 core processors with at least $400 million in combined client assets, seven gained clients, 16 lost clients, and four held steady. The rankings barely moved, but the direction of change is clear. Fewer providers are winning a greater share of relationships, and the middle of the market continues to thin.

Mind The Platform

Symitar remains the industry’s most widely used platform, serving 699 credit unions across three providers: Jack Henry with 535, Member Driven Technologies (MDT) with 97, and Synergent with 67. Altogether, 15.7% of credit unions nationwide operate on a Symitar-based core.

The overall count of credit unions fell by four this year, but the shifts within that total reveal ongoing motion. Jack Henry lost nine clients, whereas Member Driven Technologies added five and Synergent held steady. The adjustments might seem minor, but they highlight how scale and service models continue to reshape vendor relationships beneath the surface.

Fiserv’s Portico platform moved in the opposite direction, adding 84 new credit unions in the past year for a total of 613 clients, or 13.7% of the market. The growth reflects Fiserv’s continued effort to migrate credit unions from older systems to a smaller number of modernized, integrated cores.

That migration came at the expense of several legacy platforms. Fiserv’s CUSA lost 38 clients, FedComp’s Platinum platform dropped 31, and Galaxy declined by 26. The trend points in a clear direction: fewer platforms, deeper functionalities, and closer alignment with credit union strategy.

The pattern is not about who is new or who is fading. It is about how the infrastructure of the industry continues to tighten — fewer systems supporting a larger share of members, and each playing a more strategic role than ever before.

The Human Connection

Technology continues to evolve, but the human element behind every core decision remains unchanged. Every line of code, every systems upgrade, every migration still comes down to people. The teams that run the operations, the vendors that build the tools, and the members they serve.

Core systems remain the foundation of that connection. They enable every interaction, every transaction, and every moment when a member chooses a credit union over another option. Even as artificial intelligence reshapes processes and automation expands capacity, success still depends on human judgment, collaboration, and trust.

Credit unions balance progress with purpose. They don’t chase the newest tool; they use the right ones to serve members better. The system powers the work, but people define its purpose. That is what keeps the movement human.

This page is updated annually with market share figures available at midyear. For a look at last year and how things have shifted, click here. Note: The market share data presented reflects the information submitted by participating companies. 

Evaluating Core Processors? Peer Suite Has You Covered. Whether you’re a credit union evaluating core processing solutions or a supplier evaluating market share, Peer Suite is loaded with technology partner data that makes it easy to uncover deeper insights to fuel your strategies. Curious to learn more? Schedule a conversation with Callahan & Associates today. Learn more today.

The post Leaders Of The Pack: The Top 20 Cores For Credit Unions appeared first on CreditUnions.com.

That shift isn’t happening in isolation. Industry research underscores how consumer expectations and behaviors are reshaping the role of physical locations and why branches still matter. The challenge — and opportunity — lies in rethinking what a branch can be. Data shows consumers still seek human touchpoints, even as digital dominates routine tasks.

CONSUMERS OF EVERY AGE LIKE SEEING BRANCHES IN THEIR NEIGHBORHOOD
FOR ACCENTURE GLOBAL BANKING CONSUMER STUDY RESPONDENTS
SOURCE: Accenture

Strategic Insights

• Consumers Rely On More Than One Provider: In the 2023 Accenture Global Banking Consumer Study, a full 59% of respondents acquired a financial product from a provider other than their primary bank.
• Multiple Products But Fewer Ties: North American consumers hold an average of seven financial products, but fewer than half — just 3.1 — come from their main institution.
• Digital For Simple, Branches For Complex: Although 63% prefer online banking for simple tasks like checking balances, most still visit branches for complicated issues, and two-thirds value having a branch nearby for stability and accessibility.
• Branch Closures Are Slowing: A 2024 Candascent white paper notes closures accelerated during the pandemic but have since slowed; Bank of America plans to open 165 new financial centers by 2026.
• The Opportunity For Credit Unions: Branches can evolve from transaction points to hubs for advice, education, and relationship building, reinforcing the cooperative’s unique role in its community.

How Are Credit Unions Elevating Branches?

• Deep in the heart of Southeastern Texas, DuGood Federal Credit Union($567.5M, Beaumont, TX) is opening a branch to help tomorrow’s tradespeople graduate on the right financial foot with products and services designed especially for them. Read more.
• When the closure of a mega bank branch on the campus of California State University, Northridge, created a gap in financial services, Premier America Credit Union($3.3B, Chatsworth, CA) stepped in with a new space and tailored solutions to tap into the university’s significant first-generation student population and improve financial inclusion for college students. Read more.
• At Tongass Federal Credit Union($228.6M, Ketchikan, AK), small-scale, tech-enabled branches serve far-flung communities with a cost-effective model that prioritizes accessibility. This approach ensures financial services remain within reach for members who need them the most. Read more.
• University Federal Credit Union’s ($4.2B, Austin, TX) mobile branch is breaking down barriers for underserved communities by providing convenient access to essential banking services, financial education, and trusted support right where people need it. Read more.
• When Redwood Credit Union ($9.5B, Santa Rosa, CA) partnered with a local catering company to operate cafes at two locations, the credit union put quality food at a good price in the hands of the public and employees alike, marrying financial and physical wellness in California’s wine country. Read more.

When Members Feel Cared For, They Stay. Gallup research shows emotionally engaged members stay longer, own more products, and contribute more business on high-value offerings. That kind of engagement doesn’t happen by accident — it happens by design. Callahan and Gallup equip credit unions to spark behavior change that improves member financial wellbeing and drives credit union sustainable growth. The next cohort is forming now. Learn more today.

The post The Member Experience Revolution appeared first on CreditUnions.com.