Iowa Credit Unions

Member engagement deteriorated as growth decelerated to -0.90% in Q3 2025 from -0.83% in Q2 2025, marking a continued decline from 1.73% positive growth a year ago. The 29 basis point gap below the national -0.61% benchmark highlights ongoing membership retention challenges across Iowa's credit union sector.

Profitability showed mixed signals with ROA increasing to 0.99% from 0.94% quarter-over-quarter, though declining from 1.07% year-over-year. NIM remained stable at 3.79% quarterly while rising 14 bps annually from 3.65%. The cohort maintains strong profitability, outperforming national ROA by 21 bps and NIM by 7 bps.

Growth patterns diverged as asset growth decelerated to 3.31% from 3.53% quarterly, while loan growth accelerated to 1.27% from 0.94%. Deposit growth decelerated to 3.24% from 3.60% quarter-over-quarter. Despite the deceleration, Iowa credit unions significantly outpace national benchmarks across all growth metrics.

Risk metrics remained stable with delinquency at 1.00%, down slightly from 1.05% quarterly but up from 0.90% year-over-year. Net worth strengthened to 14.59%, rising 28 bps quarterly and 46 bps annually. The cohort maintains solid capital buffers at 92 bps above national levels despite elevated delinquency rates.

Portfolio composition shifted toward first mortgages, rising to 21.34% from 20.88% year-over-year, while indirect auto lending declined to 9.32% from 9.52%. Certificate concentrations increased to 22.00% from 21.78% annually. The mix reflects strategic repositioning toward real estate lending while maintaining above-national concentrations in certificates and auto loans.