New Mexico Credit Unions

Member engagement weakened significantly in Q3 2025, with growth decelerating sharply to just 0.08% from 0.84% in Q2 2025, though still outperforming the national decline of -0.61%. The near-stagnation in member acquisition represents a concerning shift from the robust 3.74% growth seen in Q3 2024, signaling potential challenges in market penetration and member attraction strategies.

Profitability surged across all key metrics in Q3 2025. ROA increased to 0.93% from 0.85% last quarter and jumped dramatically from 0.62% a year ago, positioning 15 basis points above the national 0.78%. Net interest margin expanded to 3.86%, up 10 basis points quarterly and 25 basis points annually, exceeding the national 3.72% benchmark.

Growth momentum decelerated across all major categories in Q3 2025. Asset growth slowed to 4.78% from 5.18% last quarter, while loan growth decelerated to 2.65% from 3.17% and deposit growth fell to 4.47% from 5.27%. Despite the deceleration, all metrics substantially outpaced national benchmarks, with assets growing 2.24 percentage points above the national rate.

Risk metrics remained well-controlled in Q3 2025. Delinquencies held stable at 0.81%, up just 3 basis points from 0.78% last quarter but down from 0.92% a year ago, performing 4 basis points better than the national 0.85%. Net worth strengthened to 14.10% from 13.62% quarterly and 13.41% annually, exceeding national levels by 42 basis points.

Portfolio diversification continued expanding in Q3 2025. Certificate concentrations reached 24.33%, up from 23.32% a year ago and exceeding the national 19.60%. Indirect auto lending at 14.51% significantly outweighed the national 7.90%, while first mortgage exposure at 16.61% remained below the national 21.76%, reflecting strategic positioning in higher-yielding consumer segments.