In a year defined by economic zigzags and fast-moving headlines, credit unions once again proved to be a guiding light for millions. The findings in Callahan’s latest Trendwatch webinar shows an industry that remains stable, member-focused, and makes a difference in the lives of everyday Americans.
Performance data through Sept. 30 paints the picture clearly. Loan growth reached 4.6%, share growth climbed to 5.2%, and member growth — after more than two years of deceleration — finally began to bend upward again at 2.0%. Even the median credit union, contending with changing demographics and intensified competition, held its ground with membership falling just 0.5%.
Notably, all this growth occurred without leaning on indirect lending, which remained essentially flat at 0.1% even as direct member engagement continued to rise.
Saving patterns further reinforced this engagement trend. Member share balances grew faster than the U.S. national savings rate. The types of share products reflect a membership keen on saving. Certificates and money markets carried more weight — 46.6% of total shares — even as members kept term lengths short and flexible.
On the lending side, the rebound was even more pronounced. Total originations jumped 17.7%, led by a surge in first mortgages, which accounted for 54.3% of real estate originations. Refinance activity climbed to 33% of total originations, its highest level since early 2022. Meanwhile, auto lending shrank slightly, declining 0.9% on balance sheets, reflecting tariffs, affordability pressures, and deliberate pullbacks from indirect channels.
Of course, numbers only tell half the story. The direct impact credit unions have on the lives of individual members is evident everywhere, including in these success stories:
- DuGood FCU offers 0% tool loans to trade-school students.
- Lake Trust guides new entrepreneurs through business-readiness training.
- Hello Credit Union partners with United Way’s 211 helpline to support families in crisis.
- Wright-Patt Credit Union reshapes access to affordable housing in Dayton.
- New Orleans Firemen’s FCU deploys 100% LTV mortgages to counter systemic barriers.
These aren’t anecdotes — they’re the operating system of cooperative finance.
Risk metrics held their own as well. Delinquency plateaued at 0.94% of total loans, with most categories dropping below where they were a year earlier. Charge-offs declined to 0.76%, reinforcing member resilience despite rising costs. Commercial real estate loans remain an area to monitor, with delinquency at 1.08%, high relative to the past five years but still manageable relative to historical norms.
Earnings were a standout. Total revenues reached $112 billion year-to-date, powered by higher loan yields and stable funding costs. The gap between the net interest margin and the operating expense ratio widened to 27 basis points, the largest opening in more than two decades, as more balance sheets shifted toward higher-yielding, member-driven lending. Operating expenses continue to rise — now at 3.11% of assets — but current margins offer rare strategic breathing room.
Technology trends added another layer of optimism in the third quarter. Credit unions aren’t using AI to shrink their workforce; they’re using it to sharpen the human edge. Marine Credit Union is applying AI to strengthen underwriting and risk modeling, whereas Premier America is using simulated dialogues to train branch staff in empathy, rapport, and confidence — proof that technology can amplify connection rather than replace it.
Capital remains robust, with net worth at 11.3%, supported by declining unrealized losses and strong earnings. Liquidity tightened somewhat as cash balances fell to 7.7% of assets, but available credit lines of $574 billion offer wide runway for funding if demand spikes.
The through-line across all of this is simple: credit unions perform best when conditions are hardest. Banks might excel in calm weather, but cooperatives are built for turbulence — for furloughs, sudden expenses, rising rates, and members who need someone to stand in their corner.
In a volatile year, credit unions didn’t chase the spotlight. They kept the lights on. And that steady glow continues to guide the communities they serve.
Trendwatch 3Q25 Is Available On-Demand
Callahan & Associates takes a look at third quarter credit union performance trends, exploring where the movement stands today and where opportunities lie for tomorrow.
