Credit unions grow, but delinquencies edge higher.
The nation’s federally insured credit unions reached $2.5 trillion in assets in the second quarter as membership and lending continued to expand.
The nation’s credit unions continued to grow in the second quarter, with assets, loans, deposits and membership all higher than a year earlier, according to data released Monday by the National Credit Union Administration. At the same time, delinquencies remained a pressure point, rising modestly across the system.
Federally insured credit unions held $2.50 trillion in assets as of June 30, up $120 billion, or 5%, from a year earlier. Loans outstanding rose 4.9%, or $82 billion, to $1.76 trillion, while insured shares and deposits increased 4.3% to $1.91 trillion.
The system had 146.1 million members, an increase of 2.3 million from the second quarter of 2025.
The growth came as the number of federally insured credit unions continued to fall. There were 4,214 institutions at the end of the quarter, down from 4,370 a year earlier. The decline reflects the industry’s continuing consolidation, the NCUA said.
The second-quarter figures also showed a stronger earnings picture. Net income totaled $22.4 billion at an annual rate through the first half of 2026, up $4.8 billion, or 26.9%, from the same period a year earlier.
Net interest margin increased to $86.1 billion at an annual rate, equal to 3.49% of average assets, compared with 3.32% a year earlier. Return on average assets rose to 91 basis points from 76 basis points. The median return on average assets, however, remained unchanged at 71 basis points.
Credit unions’ balance sheets continued to be dominated by residential and consumer lending, with commercial lending showing particularly strong growth.
Loans secured by one- to four-family residential properties climbed 7.8% over the year to $834.1 billion. Commercial loans, excluding unfunded commitments, increased 10.1% to $201.7 billion.
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Auto lending was nearly flat, rising 0.4% to $485.4 billion. Used-auto balances increased $3.8 billion, or 1.2%, while new-auto loans declined $1.8 billion, or 1.1%.
Credit card balances increased 2.5% to $87.2 billion. Non-federally guaranteed student loans declined 6.7% to $6.2 billion.
The credit union system’s overall delinquency rate was 96 basis points, six basis points higher than a year earlier. The increase was driven in part by commercial and non-commercial real estate loans.
Commercial loan delinquencies climbed 18 basis points to 123 basis points. Delinquencies on non-commercial real estate loans increased nine basis points to 83 basis points.
Some major consumer categories moved in the opposite direction. Credit card delinquencies edged down one basis point to 191 basis points, while auto loan delinquencies also fell one basis point, to 81 basis points.
Despite the higher overall delinquency rate, the system’s net charge-off ratio was little changed at 78 basis points, down one basis point from the second quarter of 2025.
The industry also continued to strengthen its capital position. The system’s net worth ratio rose to 11.42%, compared with 11.11% a year earlier.
Among federally insured credit unions with more than $500 million in assets, the number designated as complex institutions increased to 748 from 739. Of those, 458 opted into the Complex Credit Union Leverage Ratio framework and reported an average ratio of 12.19%. Another 290 reported under the Risk-Based Capital framework, with an average ratio of 15.39%.
The number of credit unions with a low-income designation declined slightly, to 2,370 from 2,397 a year earlier. They represented 56% of all federally insured credit unions in the second quarter.
The latest data presents a system that is simultaneously growing and consolidating: More Americans are members of credit unions and more money is flowing through them, even as the number of institutions continues to shrink.
For now, the financial picture remains broadly positive. Assets and loans are expanding, earnings have improved and capital ratios are stronger. But the rise in overall delinquencies — particularly among commercial borrowers — is a reminder that growth is occurring alongside mounting pressure in parts of credit unions’ loan books.
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
