Kentucky Credit Unions

Member engagement deteriorated in Q3 2025, with member growth declining to -0.87% from -0.78% in Q2 2025, marking a 9 basis point deceleration. This places Kentucky credit unions 26 basis points below the national benchmark of -0.61%, indicating deeper membership challenges than the broader industry.

Profitability showed mixed signals with ROA remaining stable at 0.76% from 0.79% in Q2 2025, just 2 basis points below the national 0.78%. However, NIM strengthened to 3.62% from 3.57% quarterly and 3.46% year-over-year, demonstrating improved spread management despite remaining 10 basis points below national levels.

Growth momentum decelerated across key areas in Q3 2025. Asset growth slowed to 2.64% from 3.19% in Q2, while deposit growth decelerated to 2.34% from 2.78% quarterly. Loan growth remained negative at -1.56% but accelerated from -1.65% in Q2, showing modest improvement despite trailing national performance by 1.76 percentage points.

Risk metrics remained stable with delinquencies holding at 0.69% from 0.71% in Q2 2025 and 0.70% year-over-year. Net worth strengthened to 13.65% from 13.58% quarterly but declined from 13.83% year-over-year. Credit quality remains favorable, sitting 16 basis points below national delinquency levels.

Portfolio composition shifted toward real estate with first mortgage concentration increasing to 22.56% from 22.42% quarterly and 21.92% year-over-year. Indirect auto lending decreased to 7.85% from 8.12% annually, while certificate deposits remained elevated at 22.08%, significantly above the national 19.60%.