Pennsylvania Credit Unions

Member engagement remained challenging with growth at -1.49% in Q3 2025, decelerating from -1.39% in Q2 and contrasting sharply with 3.56% growth in Q3 2024. Pennsylvania credit unions underperformed the national average by 88 basis points, indicating persistent membership retention and acquisition difficulties across the state's cooperative financial sector.

Profitability strengthened significantly with ROA increasing to 0.89% from 0.81% quarter-over-quarter and 0.78% year-over-year, now 11 basis points above national benchmarks. NIM expanded to 3.50% from 3.43% in Q2 and 3.37% in Q3 2024, though remaining 22 basis points below the national 3.72% average.

Growth momentum showed mixed signals as asset growth accelerated to 2.20% from 2.07% quarter-over-quarter, though trailing national levels by 34 basis points. Loan growth accelerated from -1.71% to -1.24% quarterly but remained 1.44 percentage points below national performance. Deposit growth accelerated to 1.78% from 1.51% quarterly, staying 54 basis points below national benchmarks.

Risk metrics remained stable with delinquency rates holding steady at 0.86% both quarter-over-quarter and improving slightly from 0.91% year-over-year. Net worth strengthened to 14.65% from 14.38% quarterly and 14.17% annually, maintaining a robust 97 basis points above the national 13.68% average, providing strong capital cushion.

Portfolio composition shifted toward certificates, increasing to 15.53% from 14.92% quarterly and 14.22% annually, though remaining below the national 19.60%. First mortgage concentration grew to 20.34% from 20.18% quarterly and 19.82% annually. Indirect auto lending declined slightly to 7.98% from 8.05% quarterly but increased from 7.82% year-over-year.