In its latest quarterly data release, the National Credit Union Administration Friday reported a solid second quarter for the industry, with federally insured credit unions posting a $82 billion, or 3.6%, year-over-year increase in total assets, reaching $2.38 trillion by the end of June 2025.

Membership climbed by 2.8 million over the same period, bringing the total to 143.8 million.

The report reflects continued strength in the credit union system overall. Loans outstanding rose $64 billion, or 3.9%, to $1.68 trillion, while insured shares and deposits grew by $71 billion, or 4%, to $1.83 trillion. Net income rose to an annual rate of $17.7 billion—up 13.2% from a year earlier—and the system's net worth ratio improved to 11.11%.

"Over the last four quarters the credit union system saw solid growth in assets, loans, and deposits reflecting the viability and resilience of credit unions," NCUA Chairman Kyle Hauptman said in a statement. "This upward trend is important as it signals a robust credit environment, enabling more credit union members and businesses to access funds for growth and investment."

However, not all segments of the industry shared equally in that momentum.

The report highlights a growing divide between the largest and smallest credit unions, continuing a long-standing trend of asset and membership consolidation at the top of the system.

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Credit unions with more than $1 billion in assets—totaling 455 institutions—now hold more than 79% of total credit union assets. Those with $10 billion or more in assets (just 22 institutions) control $607.5 billion, or 26% of the system's total, and saw 7.6% loan growth and 5.9% membership growth year over year.

In contrast, the smallest credit unions—those with under $100 million in assets—experienced declines across key metrics. Institutions with $50 million to $100 million in assets saw loans fall 8.9% and membership drop 9.8%. Those under $10 million in assets saw an 11.1% decrease in loans and a 7.3% loss in membership, with net worth down 5.7%.

Auto lending was a notable soft spot in an otherwise healthy loan portfolio.

Overall auto loans fell $6.5 billion, or 1.3%, with new auto loans declining 3.7% and used auto loans staying relatively flat. Non-federally guaranteed student loans also dipped, down 6.3% to $6.7 billion.

Despite these mixed signals, the strong performance by the larger credit unions and the industry's improved net worth ratio suggest the system remains stable and well-capitalized. Still, the data underscores growing challenges for smaller credit unions struggling to keep pace with larger peers, raising long-term questions about diversity and competition within the sector.

The NCUA report provides a snapshot of an industry both thriving and transforming, where growth increasingly clusters at the top and pressures mount at the bottom.

"This upward trend is important as it signals a robust credit environment, enabling more credit union members and businesses to access funds for growth and investment."

 – Kyle Hauptman
Chairman
NCUA