2025 was a whirlwind year, but from a balance sheet perspective, it could’ve been a whole lot worse.

That’s the consensus from a variety of credit union leaders who braved a year of economic anxiety and come out intact on the other side. The task ahead? Maintain that momentum as they head into another year of uncertainty.

“I feel like there’s more certainty this year compared to [at the end of 2024],” says Seth Rudd, chief financial officer at Leaders Credit Union ($1.3B, Jackson, TN). “Saying that, the way we approach every year, regardless of what’s going on, is we’re going to reach our goals. We take economic indicators into account, but for the most part we know what we need to accomplish next year.”

Lending Landscape

Leaders isn’t expecting any major balance sheet changes in the year ahead. Rudd says he believes it’s unlikely mortgage business will pick up significantly, but he expects another strong year. He also expects auto lending rates to remain steady. Although he bases his prognostication on rate forecasts for the Fed, local forecasting also plays a major role.

“We mostly pay attention to our local market and what we’re seeing,” he says. “We’re not seeing bankruptcies increase significantly. It’s in line with where we’ve been the past 12 to 24 months.”

Rudd says Leaders intends to stay “laser-focused” on its current product mix, blending 65% auto lending with 25% real estate and consumer lending rounding out the remainder.

“We’re committed to our model,” the CFO says. “We don’t expect a change.”

EFCU Financial ($1.2B, Baton Rouge, LA) is taking a similarly optimistic approach, understanding that it could need to pivot quickly if things go south.

“We’re positioned to handle any economic uncertainty within reason,” says Tom Kuslikis, president and CEO. “If there’s something catastrophic, we’d feel pain because of that. Now that we’re going into a declining rate environment, we’ll be keeping a close eye on our expenses and managing appropriately.”

More than 40% of EFCU’s loan portfolio is auto loans, which Kuslikis says still has room to reprice. Margins have increased a lot and financials are strong, and with a lower rate environment expected in 2026, it’s likely the credit union will begin to see some margin compression, he says.

If rates go down as expected, notes William Hunt, director of industry analytics at Callahan & Associates, it could spark mortgage activity as purchase activity picks up from consumers looking for cheaper housing options.

At Leaders, third quarter credit card growth stood at 11.49%, about half of where it was three years ago, and Rudd says delinquencies and charge-offs are picking up in lower credit tiers.

That’s in line with the K-shaped recovery many Americans have been feeling but also reflects a resilient consumer, Hunt says.

“People are still spending,” the Callahan analyst adds. “Unemployment hasn’t shot up as a whole, so most industries aren’t doing mass layoffs, even if there are some struggles. This is definitely generalized — there are pockets that are feeling that.”

Combining Forces

Ent Credit Union ($9.7B. Colorado Springs, CO) has purposefully controlled growth the past few years to stay under $10 billion in assets and avoid the additional costs and regulatory issues that come with crossing that threshold. Its merger with Wings Financial Credit Union ($9.4B, Apple Valley, MN) will send it well past that line.

“We’ve not been able to flex from a growth and balance sheet-management perspective,” says Dan Leclerc, chief financial officer at Ent. “We’re going to be in good shape with these two credit unions coming together.”

That “flex” includes a more strategic approach to deposit acquisition while getting more aggressive around loan origination. Ent has historically focused on mortgages and consumer lending, whereas Wings has excelled at commercial deals — a market that grew by more than 35% across the industry between the third quarters of 2024 and 2025, according to analysis from Callahan & Associates. That combination, Leclerc says, sets the stage for a big year.

His forecast for 2026 includes 5% deposit growth and 7% loan growth. The former will come from marketing deposits more aggressively and entering new markets in both Colorado and Minnesota.

“We’re opening six to eight new branches next year, front-loaded to the beginning of the year,” Leclerc says. “That always comes with promotional marketing, and we always get a bit of a [deposit] bump from new branches.”

Headcounts, Deposit Management, And More

Across the industry, delinquency rates have followed seasonal swings but are largely improved form one year ago. Leaders’ Rudd says he expects charge-offs to rise slightly in 2026 but doesn’t expect significant changes.

Conversely, EFCU anticipates setting aside less for credit losses in 2026, thanks in part to a well-insulated market that continues to produce strong job growth — Baton Rouge is home to a robust oil and natural gas sector.

Kuslikis adds that the need for investments — particularly those related to technology — isn’t going to slow down, but one area where the credit union has a bit more control is staffing. EFCU’s total headcount has gone up 37% in the past five years to more than 140 employees. The credit union has no plans to reduce that, but it is slowing the velocity at which it’s adding team members, which Kuslikis says will help with managing rising salary and benefits costs.

The CEO also expects the deposit mix at EFCU to shift further away from high-rate long-term CDs to lower non-maturity shares. That should help keep margins stable in an uncertain economy as the credit union works to manage expenses and cost of funds.

Post-merger, Ent plans to continue its strategy of being “in the ballpark” for CD rates, since that has proven to be a stable funding source, Leclerc says. Although money market accounts might not grow, Leclerc expects to see that funding stick around, in part because Ent largely hasn’t repriced those accounts. And there’s always the possibility there could be some attrition from money markets to CDs.

Flexibility Is Key

So did Americans dodge an economic bullet in 2025, or will the other shoe drop?

“I’d be lying if I said I knew the answer,” says Callahan’s Hunt. But he does concede that, for now, there are no alarm bells going off.

“The optimistic perspective is that the resiliency of the past year has put credit unions in a pretty strong position from a capital and earnings standpoint to give themselves a rainy day fund,” the analyst adds. “There’s some cushion there to help if things get worse or to invest in growth if things turn around. They have flexibility for whichever way it goes.”

Leaders’ Rudd offered a different mantra: “Have your plan, stick to your plan, and if the world changes significantly, change your plan.”

Take A Closer Look. Learn what performance trends are pushing the industry forward and see where credit unions stand heading into 2026. Check out Callahan & Associates’ Trendwatch webinar on-demand for insights and expert analysis. Watch today.

The post Credit Union Finance Leaders Saddle Up For 2026 appeared first on CreditUnions.com.

What do hand-crafted beers and credit unions have in common? More than most people might expect.

Both industries succeed by doing the same essential things: knowing their communities, listening closely to their customers, and crafting experiences that reflect local tastes and needs. For credit unions, the analogy isn’t about chasing the latest trend or squeezing out more bottom-line growth. It’s about pursuing strategic growth, the kind that comes from clarity of purpose, differentiated service, and products built for real people.

The connection between craft breweries and credit unions is stronger than ever. Microbreweries win by being intentional: they understand their niche, invest in quality, cultivate loyal followings, and create spaces where people feel they belong. Credit unions that embrace similar principles can strengthen member relationships, sharpen their value proposition, and grow in ways that align with both mission and market reality.

Although our external environment has evolved, the core principle of this comparison endures: sustainable success starts with knowing who you serve and designing your strategy accordingly. The lessons below offer timeless guidance for leaders committed to intentional, purpose-driven growth.

Lesson No. 1: Dude, You’re Obsessed

Successful microbreweries are founded by people obsessed with making a better product for the consumer, often provoking such comments above.

The craft beer craze began when Fritz Maytag bought a failing Anchor Brewing Company in San Francisco, CA, at the turn of the twentieth century. He, and now hundreds of others, had a vision of a better product than those produced for the masses and was determined enough to share that conviction with others. Recognizing that the big brewers catered to bottom-line profit by using fillers and the cheapest possible ingredients (corn, rice, plain white sugar) to brew beers, microbrewers differentiate their offering by using historical ingredients of barley and malt.

Additionally, these craft brewers focus on pull marketing, educating the consumer about the value they offer rather than pushing large volumes through distribution channels and then spending billions of dollars on marketing to convince the consumer to drink their product.

Lesson No. 2: Passion Is Contagious

Passion at the top isn’t enough, but it’s a great start. Successful microbreweries then spread that passion throughout their company, often through thoughtfully crafted mission and branding statements that drive corporate decisions ranging from what ingredients to use to what markets to target.

Sam Calagione, founder of Dogfish Head Craft Brewery in 1995, echoes marketing pioneers when he says his beer is a different kind of business card that tells story of what Dogfish Head is all about. If he didn’t have pride in the products he offers, it would affect his ability to sell it successfully. The company’s employees make all decisions under the motto “off-centered stuff for off-centered people,” a mission that both guides and limits what the company will do.

Anchor Brewing also focuses on authenticity. In fact, the company has declined large orders from new customers when it lacks the capacity to brew in-house rather than trust a contract brewer.

Lesson No. 3: Local Is The New Global

By definition, most microbreweries are regional operations that measure their success locally. Not all businesses are founded to be giants, but that does not mean they cannot turn out solid growth and profitability.

Microbreweries often forge strong community ties. Founded in 1987, Brooklyn Brewery helped spark a renaissance in the New York borrough by spurring economic development through active local engagement. In San Francisco at Anchor Brewing, Fritz Maytag keeps a low profile but focuses his community efforts on making the brewery a civic hub — a place to gather and meet. He opens the brewery for special events and fundraisers to help local non-profits. Dogfish Head was founded as a brewpub in the small town of Rehoboth Beach, DE, where it became a vital business in a small beach community.

Lesson No. 4: Collaboration Breeds Success

In craft beers as in life, deeper knowledge begets better decisions. The more breweries sharing knowledge locally, the faster the entire industry can expand. With microbrews accounting for roughly 13% of the U.S. beer market by volume, there’s ample room for every brewery to capture a share.

When craft competitors to Anchor Brewing entered the San Francisco scene in the early 1990s, Maytag helped them develop rival products. When Tom Potter, co-founder of Brooklyn Brewery, began his own entrepreneurial odyssey, he and his partner, Steve Hindy, visited breweries on the East Coast to learn more about the industry. The duo then included competing microbrews in their distribution strategy, even when their business advisors questioned the decision. Today, Brooklyn Brewery’s distribution arm is twice the size of the brewery itself. The founder of Dogfish Head has published a book sharing not only the secrets to his business success but also some of the recipes he used to get there.

Lesson No. 5: When Life Gives You Lemons, Brew Beer

Rather than allowing size to be an obstacle to growth, microbreweries have turned this so-called detriment into an advantage.

Dogfish Head had only 10-gallon brewing tanks when it first launched its brewpub. The founder brewed three batches every day for five days a week in the early years, leading to continual innovation and experimentation, such as using a secondhand vibrating tabletop football game to brew its most popular beer. Anchor’s Maytag opted to remain a private, and thus smaller, entity to retain complete control of his product and not fall subject to the Wall Street demands of wider profit margins.

Being smaller also means being closer to customers and nimbler in responding. Calagione at Dogfish has questioned at what point a company takes action to address repeated feedback. If bigger companies are slower to react, it follows that smaller ones can react more quickly, thus showing customers they care.

Lesson No. 6: Different Business Models Work

In researching the many different craft breweries for this article, one common lesson stood out: there is no common business model.

Each of the breweries made different business decisions in their quest for sustainability and growth. Go public or stay private? Brew exclusively in-house or contract out to those with excess capacity? Start a standalone brewery or build a brewpub with dual income streams? Control distribution or outsource through third-party distributors?

To make the best decision, these successful breweries considered what best matched their mission and vision for the organization. What they share in common is their dedication to the consumer experience, the desire to make good business decisions, a recognition of the necessity to differentiate and innovate to beat the competition, and the ability to embed themselves in the community around them.

Ultimately, this “six‑pack” of lessons from craft breweries demonstrates what can happen when commitment to value, operational agility, and community focus shapes growth strategy. A credit union that stays true to its mission — committed to members, nimble enough to respond quickly, and rooted in serving a community — can achieve sustainable growth without sacrificing what makes it special. After all, size might offer scale, but smallness often offers the closeness and care that build lasting loyalty.

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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.

Watch Now On-Demand

The post Credit Unions Steady The Wheel In A Wobbly Year appeared first on CreditUnions.com.

What’s Moving the Credit Union Industry This Quarter? Find Out Here

Join Callahan & Associates for a look at 3Q25 credit union performance trends, exploring where the credit union movement stands and where additional opportunities lie.

Why Watch?

You’ll gain deeper insights into key financial and operational metrics — including growth, lending, shares, member relationships, and more — providing context to support strategic decisions, board discussions, and more.

You’ll walk away with:

• Clear Indicators Of Industry Strength And Risk: Uncover where credit unions are excelling — and where the pressure is building.

• Strategic Benchmarks To Inform Decision-Making: Measure your performance against industry-wide trends to identify opportunities for growth or improvement.

• Economic Context Behind The Data: Understand the “why” behind the trends — including the latest shifts in economic conditions and member behaviors shaping today’s environment.

• Insights From A Credit Union Success Story: Hear from an industry leader whose institution is driving inspiring initiatives that make meaningful impact on the members and communities it serves.

We’ll be joined by our special guest speakers:

• Brent Rempe, CEO of First Alliance
• ALM First

Download the slide deck here

<<Trendwatch 2Q25

Timestamps

• ALM First Market Update – 2:10
• 3Q Credit Union Performance Part 1 – 15:41
• Credit Unions In Action Part 1 – 27:35
• 3Q Credit Union Performance Part 2 – 29:29
• Credit Unions In Action Part 2 – 33:10
• First Alliance Credit Union – 35:01
• 3Q Credit Union Performance Part 3 –  54:18
• Takeaways and Closing Thoughts – 1:09:58

The post Trendwatch 3Q25 appeared first on CreditUnions.com.

Top-Level Takeaways

• The Fed executed a 25-basis-point rate cut on Oct. 29, but forward guidance was less clear.
• Fed releases and public speeches highlight a sharp divide between FOMC hawks and doves regarding inflation and labor market risks.
• Headlines have brought pockets of credit markets into focus, including increased lending by commercial banks to non-bank financial institutions.

The FOMC moved forward with another 25-basis-point rate cut on Oct. 29. That cut was expected, but the forward outlook is a bit murkier.

Heading into the meeting, the fed funds futures market was pricing 100% probability of a December rate cut, followed by another 100 basis points of cuts in 2026. In a speech before the annual National Association for Business Economics (NABE) conference on Oct. 14, Jerome Powell had an opportunity to push back on market pricing, but the chair of the Federal Reserve instead focused on the role and size of the Fed’s balance sheet.

Powell then struck a notably different tone at the press conference following the Oct. 29 FOMC meeting.

“In the committee’s discussions at this meeting, there were strongly differing views about how to proceed in December,” Powell said in his opening remarks. “A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it.”

The updated Summary of Economic Projections (SEP) released following the Sept. 17 FOMC meeting revealed a wide range of opinions on where the federal funds rate would end 2025, as well as the long-run neutral rate. In the speeches that followed that meeting, more dovish Fed leaders expressed concern that recent labor market softening was a harbinger for weaker GDP and reduced inflation in the months ahead. On the other hand, Fed hawks characterized the September cut — and the likely cut on Oct. 29 — as insurance against further weakness in the labor market. At the same time, they expressed hesitancy about doing much more policy easing amid ongoing inflation uncertainty.

This debate was clearly alive and well during the Oct. 29 meeting, which Powell even suggested should be clearer when the minutes are released. During the press conference, Powell said he believes most of the slowdown in hiring is more attributable to supply-side factors (labor participation and immigration) as opposed to the demand side of the equation (business investment). Fed policy typically has less impact on labor supply and more on labor demand. This is likely a critical factor in the current outlook of Fed hawks.

Visit ALM First to read more about the latest economic data and overall monthly market trends.

Jason Haley joined ALM First in 2008 and is the firm’s chief investment officer. He heads ALM First’s Investment Management Group (IMG), which is responsible for leading the investment process and investment theme development. Haley also oversees all capital markets activities, including portfolio management, trading, market research and commentary, and execution of hedging and funding strategies for the firm’s depository clients. He holds an MBA with a concentration in finance and a BBA with a concentration in marketing, both from The University of Mississippi.

Not an offer for investment advisory services. This content is provided for general educational information and market commentary purposes only.

The post Forward Guidance Less Clear After October Rate Cut appeared first on CreditUnions.com.

Although most top-level metrics are not signaling a recession, significant evidence points to a K-shaped economy, one in which some Americans — especially those tangential to the AI-fueled tech and finance sectors — are doing well while others — including middle- or low-income consumers most severely squeezed by tariff-driven inflation and government layoffs — struggle to make ends meet.

In times like these, members look to financial institutions they can trust, who look out for the best interest of accountholders, not shareholders. Third quarter data show credit unions are making steady, impactful progress in serving their members.

Takeaway 1: Member Growth Ticks Up

MEMBER GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Growing membership is the surest sign that credit unions are providing value to Americans. It shows the industry is offering in-demand products and services when for-profit institutions might be pulling back to reduce risk.
• Total industry membership growth rose to 2.2% in the third quarter, reversing a years-long trend of decelerating growth. Even more, the industry’s ongoing retreat from indirect lending suggests these additional members are poised to conduct extensive, engaged business with their institution.
• Indirect lending at credit unions dipped below 19.9% of total lending, the lowest since the end of 2021. Renewed mortgage demand helped this trend, but the drop still reflects a stronger “core” member base.

Key Takeaway 2: Loan Originations Rise Amid Rate Cuts

QUARTERLY LOAN ORIGINATIONS AND 10-YEAR TREASURY YIELD
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• The Federal Reserve cut rates in September and again in October, lowering the federal funds rate to 3.75% – 4.00%. In anticipation of these reductions, the 10-Year Treasury rate dropped and borrowing became cheaper.
• Members correspondingly increased borrowing in the third quarter. Originations in real estate, where lending was previously dormant, were up by 24.2% year-over-year.
• Lower rates tend to drive refinancing, an area in which credit unions thrive. As rates continue to drop, expect loan demand to further increase in that relationship-driven piece of the portfolio.
• Consumer loan originations were up 13.6% year-over-year; strong performance that increased tariffs and vehicle prices could be hindering.

Trendwatch 3Q25. Explore third 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 On-Demand today.

Takeaway 3: Core Members Are Deepening Relationships

AVERAGE MEMBER RELATIONSHIP
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• • The average member relationship remained mostly flat in the third quarter.
  • Despite the fact the average share balance increased by $424, or 3.2%, year-over-year, it actually fell $38 quarter-over-quarter amid increased consumer spending.
  • The average loan balance increased $31quarter-over-quarter thanks mainly to a 6.0% uptick in mortgages as members took advantage of falling interest rates.
  • As more members join the movement, it can become difficult for credit unions to identify the needs of members at both the top and the bottom of the wealth bracket. Credit unions would do well to work with members on an individual basis to uncover the right opportunities.

Takeaway 4: Delinquency Rises Across All Product Types

DELINQUENCY BY PRODUCT TYPE
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Following fairly normal seasonality patterns, total delinquency rose 4 basis points in the third quarter to reach 0.94%.
• Credit card delinquency exceeded 2% for the first time in 2025; still, it is lower than where it was in the third quarter of 2024. A similar pattern is evident in used auto, where delinquency has risen during the year but is lower than the third quarter of 2024. Trends in consumer loan repayment indicate members are struggling but showing resiliency in the face of tariffs and inflation.
• In commercial and residential real estate, delinquency has inched up from this time last year. This is particularly worrying in residential real estate, which is a traditionally stable loan type. The bump could be signaling a return to post-2008 behavior, when borrowers walked away from their mortgage loans before others.
• Net charge-offs fell 2 basis points quarterly to 0.76%. First mortgage net charge-offs remained almost non-existent as credit unions work with members around these mortgages.
• A drop in asset quality suggests rockier roads for members and provides an opportunity for credit unions to guide and support.

Takeaway 5: Net Interest Margin Growth Outpaces Operating Expense Growth

NET INTEREST MARGIN VS. OPERATING EXPENSE RATIO
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

• Credit union margins took a sizable jump, hitting 3.38% on net, driven by a rise in interest income while expenses held flat. The rise in income came mainly from increased lending demand as credit unions converted more shares into higher-yielding mortgages. The cost of funds held steady 2.06%.
• Operating expenses grew slightly to 3.11%, mirroring the pace of the past few years as inflation hits the costs of doing business. All told, ROA is healthy at 0.81%
• High margins, driven by rate repricing, provide credit unions with a clear operational advantage in the near term. Interest margins have not outpaced operating expenses by such a large gap in this millennium.
• Credit unions have flexibility to help struggling members without risking long-term stability; however, rate cuts are likely to bring down interest margins in the mid-to-long term while operating costs continue an inflation-driven upward trend.

Let’s Review Your Credit Union Performance Data Together. Join a Callahan advisor for a complimentary 1:1 session to analyze your performance reports. We’ll benchmark your credit union against two to three peer groups of your choice and provide a detailed report of our findings at the end of the session to help your team make informed strategic decisions. Request your free session today.

See You Next Quarter! CreditUnions.com updates this page with the freshest FirstLook credit union data every quarter, so don’t forget to come back for insights into the fourth quarter of 2025.

The post 5 Takeaways From Trendwatch appeared first on CreditUnions.com.

When it comes to growth, few teams carry more weight than marketing. The way credit unions organize their marketing function — who it reports to, how it collaborates, and what it’s tasked to achieve — can determine how effectively the entire organization connects with members and expands its reach.

A Stronger Foundation Enables Stronger Service

At 3Rivers Federal Credit Union ($2.7B, Fort Wayne, IN), marketing functions as a growth and revenue center supported by marketing, business intelligence, and digital experience. All roles of this three-legged stool fall under chief growth officer Gautam Borooah, who joined the credit union in early 2025.

“To get to that next level, we have to be an organization that drives profitable revenue and growth,” Borooah says. “This trifecta of marketing working in tandem with analytics and digital experience is essential to that.”

The team works across the organization to identify areas in need of support, then considers if there is enough ROI to develop profitable campaigns to support growth. When the right opportunities arise, the three functions come together to develop campaign plans, which include details surrounding timelines, milestones, dispersing leads, facilitating dialogue across the organization, and more.

“We’re always looking for ways to support our organizational goals,” says Simone LeClear, assistant vice president of marketing. “It’s great when business intelligence comes in and says, ‘We see an opportunity here.’”

All Eyes On ROI

3Rivers’ business intelligence unit is made up of five team members who ensure the team has the right data to guide investment decisions. That’s all part of a broader push to make the credit union a more metrics-driven organization.

“It’s important to foster revenue so we can do the things that credit unions do,” says Chad Gramling, assistant vice president of business intelligence. “If we’re not well-capitalized, we’re limited in what we can do and how we can contribute to our communities.”

The credit union’s emphasis on ROI is crucial, he adds, because it’s members’ money being invested. Careful planning and cross-departmental collaboration helps to justify when the credit union spends money — and when it doesn’t. According to the BI executive, the team has delved into projects only to realize they didn’t make sense and had to abandon them.

“That calculation makes those decisions a little bit easier,” Gramling says. “It takes out some of the emotion and makes it more rational.”

A Winning Digital Experience

The digital experience team ties together the messaging from the marketing team with the analytics from business intelligence. Pairing those efforts helps illustrate the performance of individual initiatives as well as provides better insight into different member journeys.

“Hopefully that gets us to whatever end goal we’re trying to achieve, whether it’s a campaign or just informing our members about day-to-day stuff,” says Tim Boggs, assistant vice president of digital experience.

The actions of each unit impacts the efforts of the others, and Boggs and his team often serve as the connective tissue.

“Some of the digital platforms I oversee provide data to Chad’s team to put the big picture together and create these campaigns,” Boggs says. “It all comes full circle.”

What’s Next?

3Rivers’ marketing model is continually evolving to meet the credit union’s growth needs.

The move to a growth-focused department hasn’t come without changes. For one, the credit union has phased out a vice president of marketing role, and to increase efficiency, staffers who would previously have reported to that role now report to Borooah.

“We wanted to be more nimble and have fewer layers,” he says.

A director of communications and community role is also in the works, with a focus on internal communications.

“As we get ready for that next level of growth, which hopefully propels us to be a $5 billion-asset credit union, we have to be much more deliberate in our communications strategy,” Borooah says.

Think Like A Credit Union, Function Like An Ad Agency

To hear Leigh Anne Bentley tell it, the marketing department at Leaders Credit Union ($1.2B, Jackson, TN) has “exploded” in the past several years. The credit union has its own three-legged stool of sorts, with divisions focused on traditional marketing, community engagement, and innovation and member experience.

When Bentley joined Leaders in 2016, marketing had just three people — two traditional marketers and a community-engagement specialist. Today it houses 11 staffers, including two team members focused on digital marketing, a graphic designer, videographer, and more, plus a four-person community-engagement team.

“We’ve always had this structure; as we’ve grown, we’ve simply added more people to it,” says Bentley, the credit union’s chief marketing officer. “Our core approach hasn’t changed, we’ve just gone much deeper in each area.”

Some of the most significant growth has come from the four-member community-engagement team. Each member of that cohort works on functions like managing SEG relationships, promoting financial wellness, serving on boards, and volunteering for chamber events in the community. The credit union is based in Jackson, TN, but has a branch presence in counties beyond the Jackson metro area, so each team member covers a specific area

Traditional marketing and community engagement each have their own director that oversees small teams, whereas innovation and member experience functions as a team of one. Along with Bentley, community engagement and innovation/member experience all serve on Leaders’ advisory boards, divvied up by geography.

Growing Bigger And Better

The department’s growth has reflected the credit union’s own. When Bentley joined nearly a decade ago, Leaders had assets of approximately $330 million. Today, it holds more than $1.2 billion in assets.

Bentley and another member of the team both have ad agency backgrounds, and the department functions similarly, with a focus on in-house production. The team produces everything in-house, from print to digital to online and TV advertising. It also makes all web updates except those that require coding.

The staff is a mix of those with traditional advertising backgrounds and former branch employees. The videographer was a universal banker before moving into marketing. That employee produces video for not only Leaders and its foundation but also the credit union’s podcast, including breaking it up into smaller reels to run on different social media platforms. Given the resources the credit union was spending on videos, finding an internal film major that wanted to get into marketing proved serendipitous.

“It was a great transition to move her over,” Bentley says. “She proved herself immediately.”

Even In Marketing, Member Experience Matters

To ensure marketing’s priorities reflect broader organizational goals, the team meets twice every month with other departments to discuss analytics, campaigns, sales, and more. Those meetings also provide fodder for the internal newsletter the marketing team distributes each month.

Although each division has its own focus area, Bentley says the entire team works with an eye toward member experience, always asking what’s best for members and striving to keep MX at the forefront. But like in any team, marketing alone does not an experience make.

“I’ve got to give kudos to the front-line staff and the sales staff for the level of member service we have,” the CMO says. “We can market all day long, but it’s the front lines and the people on the phones and in the branch who show what great member experience looks like.”

Streamline Your Marketing Structure. Building the right marketing team doesn’t have to start from scratch. Callahan’s Policy Exchange offers ready-to-use org charts, job descriptions, and templates designed to help credit unions hire efficiently and structure teams for success. Explore hundreds of resources that make planning easier and keep your focus on strategy, not paperwork. Learn more today.

The post How 2 Marketing Teams Organize For Impact appeared first on CreditUnions.com.

NET NEW MEMBERS AND MEMBERSHIP GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

After peaking in 2022 and 2023, with more than 5 million new members annually and growth rates exceeding 4%, net new members fell to 2.7 million, a steep decline from the post-COVID boom years when growth exceeded 4% and annual additions topped 5 million.

Several factors contribute to this slowdown. Higher interest rates, liquidity pressures, broader economic deceleration, and consumer expectations for digital-first experiences and personalized engagement have all strained operations. What’s more, indirect lending — once a reliable growth engine — has become a strategic liability. In mid-2023, indirect loans made up nearly 25% of all credit union lending, skewing focus away from core members. Many institutions are now recalibrating, pulling back from indirect channels to re-engage with their foundational membership.

The numbers tell a clear story: member growth at credit unions is no longer on autopilot. Unfortunately, data alone doesn’t chart a path forward. It does, however, underscore a critical inflection point that invites a deliberate rethinking of strategy. With that in mind, experts from Callahan & Associates discuss what credit unions can do — not just what’s happening now — to reignite growth, deepen engagement, and reinforce relevancy amid shifting member preferences.

TAKE 1: Purpose Is The New Growth Strategy

Growth is essential to long-term sustainability. Focus is essential to growth. But what should credit unions focus on? Life today is noisy and fast-paced. Consumers are bombarded with information and options. For financial cooperatives to rise above the noise and stand out — both critical for growth —they must return to their roots: their why, their purpose.

Purpose goes beyond products and services. It reflects a credit union’s commitment to improving members’ lives in meaningful and lasting ways. When a credit union clearly defines and communicates its purpose, it can build trust, loyalty, and emotional connection with current and potential members. Purpose becomes the springboard for growth.

Embedding purpose into culture and operations takes intentionality and patience. But when done well, it motivates and empowers employees to engage deeply — with one another and with members. Purpose-driven employees lean in. They show up. These authentic interactions create a flywheel effect, transforming members from passive recipients of services into active catalysts for growth.

When people feel seen, heard, and supported through shared values, they’re more likely to invite others to experience the same. Purpose turns members into advocates. It’s not just a branding tool — it’s a strategic asset that fuels sustainable, mission-aligned growth.

Katy Slater is a senior vice president at Callahan & Associates. When she’s not leading the firm’s initiatives to promote a positive culture and live out its value proposition, Katy is pushing the movement’s leaders to think more deeply about what it means to be a cooperative in today’s financial services industry. Learn more about Callahan’s consultants and its ground-breaking programs on Callahan.com.

TAKE 2: When Members Feel Cared For, Growth Follows

Is the dramatic drop in membership growth a cause for panic or an opportunity to ask, “Should we be counting new members as if they’re all the same?”

Data suggests at least a quarter of net new members in recent years are one-hit wonders sourced through indirect channels. They produce income to better serve core members, but they also confirm that all members are not the same.

As financial cooperatives, credit unions exist to make their members’ lives better through the delivery of financial products and services.  That’s the goal; growth of any sort is a lagging indicator that they are delivering on it. Except, delivering wellbeing is tough when your primary tools are indistinguishable commodities. Caring about members helps, but the hard truth is, caring doesn’t matter unless members feel cared for.

When members strongly agree their credit union looks out for their financial wellbeing, they become more loyal, use more products and services, and don’t cross-shop when they need something. Decades of Gallup research supports this, and it’s validated every day by research Callahan and Gallup conduct through the credit union consortium program we lead.

Making people feel cared for can power credit unions into the future, improving member financial wellbeing and credit union financial performance at the same time. If credit unions take this drop in membership growth as a wake-up call, then growth of all kinds will take care of itself.

Chris Howard is a senior vice president at Callahan & Associates. Chris works with industry-leading credit unions on purpose, financial health and wellbeing, data analytics, fintechs, and stakeholder impact. You can also find him moderating Callahan Executive Roundtables or consulting with any number of credit unions on topics ranging from strategy and governance to member engagement and ways to measure performance. Learn more about Callahan’s consultants and its ground-breaking programs on Callahan.com.

The post 2 Hot Takes On Member Growth appeared first on CreditUnions.com.

Credit Union Performance Benchmarking Trends

For many credit union executives and finance leaders, reporting on financial performance and benchmarking against peers is common practice.

But when addressing challenges like increasing member growth, improving asset quality, or boosting operational efficiency, traditional asset size or geographic peer groups often fall short of providing meaningful insight.

That’s why leading credit unions are turning to more advanced techniques; using aspirational and business model peer groups to tailor their analysis, uncover deeper context, and support smarter decision-making.

In this free webinar, Callahan’s industry analytic experts will explore how these emerging approaches are being used in practice — and how you can apply the same methodology to meet your organization’s needs.

What You’ll Learn:

• Why starting with a clear question is key for building an analysis.
• How to build aspirational and business model peer groups.
• Real-world examples of how credit unions are using similar methodologies to address challenges like member growth, asset quality, and operational efficiency.
• Practical ways to make the data you already rely on work harder and smarter for your organization.

Download the slide deck here

Book Your Credit Union’s Free Performance Analysis

Let’s apply the same advanced techniques from our webinar, tailored to your organization’s unique aspirations and challenges.

Schedule a performance analysis session with Callahan & Associates and we’ll build a custom benchmarking report you can use immediately in board and leadership discussions. It’s yours to keep — free of charge.

Get Started

The post Credit Union Performance Benchmarking Trends appeared first on CreditUnions.com.

In a landscape of economic uncertainty and lawmaker pressure, credit unions stand at a pivotal crossroads: They are challenged to reaffirm their relevance even as they double down on efforts to differentiate themselves, steer into their specialties, and reinforce member trust and loyalty.

Although the credit union movement continues to grow, the rate at which it has added new members has drastically slowed in the past three years. At mid-year 2025, the industry’s annual membership growth dropped to just 1.88%, the slowest rate since the fourth quarter of 2011.

Factors contributing to these growth dynamics include higher interest rates, liquidity pressures, and the larger slowdown of the U.S. economy; however, changes to membership growth strategies and difficulties in marketing to a new generation also play a role.

NET NEW MEMBERS AND MEMBERSHIP GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

The Credit Union Member At Midyear

Credit union membership has notably fluctuated in both members gained and member growth in the past decade. The industry reported particularly strong growth in the post-COVID years, when excess liquidity from the CARES Act drove credit unions to source loan demand from indirect partnerships. Growth peaked in 2022 and 2023 with more than 5 million new members per 12-month period and growth exceeding 4%.

However, membership growth started to decelerate in 2024 and dropped to just 1.88% in the second quarter of 2025. Net new members fell to approximately 2.7 million at midyear amid changes in credit union strategy, rising competition from fintech and traditional banks, and shifting consumer preferences.

INDIRECT LOAN GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

Changes In Credit Union Strategy

In mid-2023, indirect loans comprised nearly 25% of all credit union lending, suggesting an imbalance in membership focus.

At that time, many credit unions already recognized their balance sheets were skewing in favor of indirect members and were taking steps to re-engage with and nurture their core membership roots. Consequently, growth in indirect lending started to decline sharply in late 2022 and turned negative by the end of 2024, where it has remained in 2025.

Competition And Consumer Preferences

Even as credit unions consciously change their membership growth strategies to focus on direct member relationships, they must navigate a field of increased competition and battle for market awareness. Shifting consumer preferences toward digital-first experiences and personalized service further intensify the challenge. Large banks and fintechs possess the scale and financial resources to invest in state-of-the-art digital presences and attract consumers through targeted marketing and smooth rate-shopping interfaces.

CREDIT CARD LINES AND UTILIZATION
FOR U.S. CREDIT UNIONS
SOURCE: Callahan & Associates

Impacts On Penetration

Despite their renewed focus on core members, many credit unions have struggled to develop lending relationships with them. As of June 30, 2025, less than half of credit union members held a direct loan with their credit union.

This disconnect is reflected in product engagement trends. Product penetration rates have been volatile, with credit cards and first mortgages both dipping during the pandemic, then recovering. Rates climbed to their highest levels ever in late 2022 and early 2023; unfortunately, they declined to pre-pandemic levels in 2025.

Credit unions reported a decline in overall credit card usage during the pandemic as cautious consumers reduced spending and avoided taking on new debt in the face of widespread economic disruptions and financial uncertainty. Members didn’t need to tap credit cards or HELOCs when they were at home and had access to relief packages.

Since then, utilization rates have climbed but have yet to surpass pre-pandemic rates. This might indicate members are struggling less than they were before the pandemic. It could also be a sign that members are not relying on their credit unions and are instead tapping credit elsewhere.

The Price Of A New Member

Despite slowing membership and penetration, credit unions are working to re-establish close relationships with members. Broadly speaking, member acquisition depends on how a credit union performs in three key areas:

1. Does the credit union understand its membership’s needs?
2. Can the credit union effectively tell its story and present itself as the solution?
3. Is the credit union able to push this story in front of current or potential members?

Those who can answer “yes” to these questions tend to do well in acquiring and engaging members.  However, member acquisition also tends to involve rising costs and new investments in surveying, branding, product design, and marketing — often through digital channels.

The cooperative, member-focused model provides a leg up in the competitive marketplace. How effectively credit unions tap into that advantage depends on how they balance operational sustainability with their missions to serve. Ultimately, credit unions that can clearly articulate their value — and deliver it with consistency — will be best positioned to turn their cooperative advantage into lasting member loyalty and market relevance.

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