Arizona Credit Unions

Member engagement showed mixed signals in Q3 2025. Member growth decelerated substantially to 0.37% from 0.83% in the prior quarter, though this represents a significant improvement from the -3.46% decline recorded in Q3 2024. The quarterly slowdown suggests potential headwinds in member acquisition and retention efforts.

Profitability remained strong with ROA holding stable at 0.81% quarter-over-quarter, up 4 basis points, and improving 7 basis points year-over-year from 0.74%. NIM expanded to 3.99%, gaining 5 basis points quarterly and 25 basis points annually, maintaining a healthy 26 basis point premium over the national benchmark of 3.72%.

Growth momentum decelerated across key metrics in Q3 2025. Asset growth slowed to 4.59% from 4.72% quarterly, while deposit growth decelerated to 4.83% from 5.13%. Conversely, loan growth accelerated to 1.39% from 1.31% quarterly. Despite the deceleration, Arizona credit unions significantly outpaced national growth rates.

Risk metrics presented a mixed picture with delinquencies increasing 8 basis points quarterly to 0.85%, now matching national levels after previously running below. However, the year-over-year change remained stable at just 2 basis points. Net worth strengthened to 11.64%, up 21 basis points quarterly and 41 basis points annually.

Portfolio composition continued shifting toward higher-yielding assets. Certificate concentrations increased to 16.79%, up 51 basis points quarterly and 208 basis points year-over-year, approaching the national average of 19.60%. Indirect auto lending decreased to 23.15% from 23.84% quarterly, while first mortgages remained relatively stable at 14.12%.