Credit Union Earnings Surge 27% As Assets Reach $2.5 Trillion
By CU Today Staff —
ALEXANDRIA, Va.—Federally insured credit unions posted stronger earnings and continued balance-sheet growth in the second quarter, with net income surging nearly 27% from a year earlier even as loan delinquencies moved higher, according to new data from the NCUA.
The agency reported 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. Return on average assets improved to 91 basis points from 76 basis points, while the aggregate net worth ratio strengthened to 11.42% from 11.11%. The industry's net interest margin widened to 3.49% of average assets from 3.32%.
Total assets increased $120 billion, or 5%, over the year to $2.50 trillion, while loans outstanding rose $82 billion, or 4.9%, to $1.76 trillion. Loan growth was led by 1- to 4-family residential loans, which increased 7.8% to $834.1 billion, and commercial loans, which jumped 10.1% to $201.7 billion. The overall delinquency rate, however, increased six basis points to 96 basis points, while the net charge-off ratio was little changed at 78 basis points.
Here is a closer look at the data:
Selected Performance Indicators
• Insured shares and deposits rose $80 billion, or 4.3%, over the year ending in 2026Q2, to $1.91 trillion.
• The loan to share ratio stood at 82.9% in 2026Q2, down from 83.1% in 2025Q2.
• The credit union system’s net worth ratio was 11.42% in 2026Q2, compared with 11.11% one year earlier. Note that beginning in 2023Q1, this ratio excludes the Current Expected Credit Loss (CECL) transition provision.
• Net income totaled $22.4 billion at an annual rate in the year to date through 2026Q2, up $4.8 billion, or 26.9%, compared with the same period in 2025.
• The net interest margin for federally insured credit unions was $86.1 billion at an annual rate in the year to date through 2026Q2, or 3.49% of average assets. That compares with $77.8 billion at an annual rate, or 3.32% of average assets, in the year to date through 2025Q2.
• The return on average assets for federally insured credit unions was 91 basis points at an annual rate in the year to date through 2026Q2, compared with 76 basis points in the same period a year earlier. The median return on average assets across all federally insured credit unions was 71 basis points, unchanged from a year earlier.
• The number of federally insured credit unions declined to 4,214 in 2026Q2, from 4,370 in 2025Q2. In 2026Q2, there were 2,649 federal credit unions and 1,565 federally insured, state chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
• The number of credit unions with a low-income designation declined to 2,370 in 2026Q2 from 2,397 one year earlier. Their share edged up to 56% of all federally insured credit unions in 2026Q2.
• The number of complex federally insured credit unions (those with total assets greater than $500 million) rose to 748 from 739 one year earlier.
• 458 opted into the Complex Credit Union Leverage Ratio (CCULR) framework with an average CCULR of 12.19%.
• 290 reported under the Risk-Based Capital (RBC) framework with an average RBC ratio of 15.39%.
• Federally insured credit unions added 2.3 million members over the year, and credit union membership in these institutions reached 146.1 million in 2026Q2.
• Total assets in federally insured credit unions rose by $119.9 billion, or 5.0%, over the year to $2.50 trillion in 2026Q2.
• Cash declined by $4.8 billion, or 2.5%, to $187.2 billion.
• Total investments rose $28.5 billion, or 7.2%, over the year to $425.3 billion in 2026Q2.
• Investments with maturities less than or equal to one year increased by $2.0 billion, or 1.9%, to $103.4 billion.
• Investments with maturities of one to three years rose by $3.4 billion, or 3.3%, to $109.1 billion.
• Investments with maturities of three to five years increased $16.5 billion, or 19.1%, to $102.9 billion.
• Investments with maturities of five to 10 years rose by $7.9 billion, or 9.2%, to $93.8 billion.
• Investments with maturities greater than 10 years declined by $1.3 billion, or 7.6%, to $16.1 billion.
• Total loans outstanding increased $82.2 billion, or 4.9%, over the year to $1.76 trillion. Growth was recorded in most major loan categories.
• Loans secured by 1- to 4-family residential properties increased $60.6 billion, or 7.8%, to $834.1 billion in 2026Q2.
• Auto loans expanded by $2.0 billion, or 0.4%, to $485.4 billion. Used auto loans grew by $3.8 billion, or 1.2%, to $324.7 billion, more than offsetting a $1.8 billion, or 1.1%, decline in new auto loans to $160.7 billion.
• Credit card balances grew by $2.1 billion, or 2.5%, to $87.2 billion.
• Non-federally guaranteed student loans edged down $0.4 billion, or 6.7%, to $6.2 billion.
• Commercial loans excluding unfunded commitments increased $18.5 billion, or 10.1%, over the year to $201.7 billion in 2026Q2.
• The delinquency rate at federally insured credit unions was 96 basis points in 2026Q2, up 6 basis points compared with 2025Q2.
• The delinquency rate on non-commercial real estate loans was 83 basis points in 2026Q2, 9 basis points higher than in 2025Q2.
• The credit card delinquency rate edged down 1 basis point over the year to 191 basis points in 2026Q2.
• The auto loan delinquency rate also edged down 1 basis point to 81 basis points in 2026Q2.
• The delinquency rate for commercial loans excluding unfunded commitments was 123 basis points in 2026Q2, up 18 basis points from a year earlier.
• The net charge-off ratio for all federally insured credit unions was 78 basis points in 2026Q2, down 1 basis point compared with 2025Q2.
• Total shares and deposits grew by $105.0 billion, or 5.2%, over the year to $2.13 trillion in 2026Q2. Regular shares increased by $15.2 billion, or 2.6%, to $588.1 billion. Other deposits grew by $66.5 billion, or 6.3%, to $1.12 trillion, primarily reflecting a $34.2 billion, or 5.9%, increase in share certificate accounts and a $31.7 billion, or 9.0%, increase in money market accounts.
• The credit union system’s net worth increased by $21.2 billion, or 8.0%, over the year to $285.3 billion. The aggregate net worth ratio—net worth as a percentage of assets—stood at 11.42% in 2026Q2, up from 11.11% one year earlier. Note that beginning in 2023Q1, this ratio excludes the CECL transition provision.
• The net worth ratio for prompt corrective action was 11.47% in 2026Q2. This ratio considers the CECL Transition Provision, as applicable. The calculation can be found on Schedule G of the 5300 Call Report; see Account 998.
• Net income for federally insured credit unions totaled $22.4 billion at an annual rate in the year to date through 2026Q2, up $4.8 billion, or 26.9%, from the same period in 2025. Interest income rose $7.3 billion, or 6.1%, to $128.2 billion at an annual rate. Noninterest income rose by $1.8 billion, or 6.7%, to $27.8 billion at an annual rate.
• Interest expense totaled $42.1 billion at an annual rate in the year to date through 2026Q2, down $1.0 billion, or 2.2%, from one year earlier. Non-interest expense grew by $5.3 billion, or 7.4%, to $77.8 billion at an annual rate in the year to date through 2026Q2. Rising employee compensation and benefits, which were up $3.0 billion, or 7.9%, accounted for more than half of the increase in non-interest expenses.
• The aggregate net interest margin widened by $8.3 billion, or 10.7%, to $86.1 billion at an annual rate in the year to date through 2026Q2.
• The credit union system’s provision for loan and lease losses or credit loss expense declined by less than $0.1 billion, or 0.4%, over the year to $13.6 billion at an annual rate in the year to date through 2026Q2.
Originally reported by CU Today.