Federally insured credit unions reported rising membership, stronger earnings and steady loan growth even as consolidation continued across the industry.

Federally insured credit unions expanded their balance sheets and sharply increased profits in 2025, according to new data released Friday by the National Credit Union Administration, reflecting steady lending growth, stronger margins and continued membership gains even as the number of institutions declined.

Total assets at federally insured credit unions rose by $126 billion, or 5.4%, over the year ending in the fourth quarter of 2025, reaching $2.43 trillion. The growth came alongside an increase of 2.4 million members, bringing total membership to 144.7 million.

Loans remained the largest driver of balance sheet expansion. Outstanding loans increased by $76 billion, or 4.6%, to $1.72 trillion during the year. The average outstanding loan balance rose to $19,397 in the fourth quarter, up $984, or 5.3%, from a year earlier.

Much of the lending growth came from residential mortgages and commercial loans. Loans secured by one- to four-family homes increased $55.5 billion, or 7.4%, reaching $804.1 billion. Commercial loans also expanded strongly, rising $18.9 billion, or 10.9%, to $192.9 billion.

Other lending segments showed mixed results. Credit card balances grew modestly, increasing $2.6 billion, or 3.1%, to $87.8 billion. Auto lending, however, softened slightly, declining $1.3 billion to $480.1 billion. The decline reflected a drop in new auto lending, which fell 2.3% to $160.4 billion, partially offset by a small increase in used auto loans.

At the same time, credit unions continued to attract deposits. Insured shares and deposits increased $83 billion, or 4.7%, to $1.86 trillion. Overall shares and deposits across the system rose even more sharply — up $108.4 billion, or 5.5% — reaching $2.07 trillion.

Much of that growth occurred in higher-yield deposit products. Share certificates increased $36.3 billion, while money market accounts rose by $29.1 billion.

The industry’s loan-to-share ratio stood at 83.2% at the end of the fourth quarter, slightly lower than the 84% recorded a year earlier.

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Asset growth was accompanied by stronger earnings. Net income across federally insured credit unions reached $18.8 billion in 2025, a $4.5 billion increase from 2024, representing a 31.5% rise.

The industry’s net interest margin widened significantly, reaching $80.4 billion in 2025, equal to 3.39% of average assets. That compared with $71.2 billion, or 3.12% of assets, the previous year.

The return on average assets also improved, rising to 79 basis points from 63 basis points in 2024. The median return on average assets across all credit unions reached 72 basis points, up 11 basis points.

Despite those gains, operating costs increased. Non-interest expenses rose $4.7 billion, or 6.8%, to $74 billion, with employee compensation and benefits accounting for roughly half the increase. Those costs climbed $2.6 billion, or 7.2%, during the year.

Interest income increased $8.4 billion, or 7.3%, reaching $123.6 billion, while interest expense declined slightly to $43.2 billion.

Credit quality remained generally stable, though some indicators ticked upward. The delinquency rate rose to 103 basis points in the fourth quarter, five basis points higher than a year earlier.

Commercial loan delinquencies increased to 98 basis points, up 13 basis points year over year, while non-commercial real estate loan delinquencies climbed to 88 basis points. Credit card delinquencies remained largely unchanged at 215 basis points, and auto loan delinquencies held steady at 96 basis points.

Even as delinquencies rose slightly, charge-offs declined. The net charge-off ratio fell to 78 basis points, two basis points lower than in the fourth quarter of 2024.

The industry also strengthened its capital position. Aggregate net worth increased $18.7 billion, reaching $274 billion. The system’s net worth ratio rose to 11.26%, compared with 11.07% a year earlier.

Meanwhile, consolidation continued across the sector. The number of federally insured credit unions fell to 4,287 at the end of 2025, down from 4,455 one year earlier.

Of those institutions, 2,686 were federally chartered credit unions and 1,601 were federally insured state-chartered institutions. The decline reflects a long-running trend of mergers and consolidations within the industry.

At the same time, the number of large institutions continued to rise. Credit unions with more than $500 million in assets increased to 739, up from 728 the previous year.

Among those larger institutions, 456 reported capital levels under the Complex Credit Union Leverage Ratio framework, with an average ratio of 12.04%. Another 283 reported under the risk-based capital framework, with an average capital ratio of 15.38%.

Despite ongoing consolidation, the industry’s overall footprint continued to grow as membership, deposits and lending expanded — underscoring the sector’s steady role in consumer and small-business finance across the United States.