Tennessee credit unions faced challenging conditions in Q4 2025, with member growth remaining negative at -0.69% (stable from -0.71% in Q3 but down sharply from +2.85% a year ago). Profitability declined as ROA fell to 0.71% from 0.76% last quarter and 0.82% a year prior, though NIM held steady at 3.84%. Asset growth accelerated to 2.58% from 2.22% quarter-over-quarter but decelerated significantly from 7.68% year-over-year. Strong capitalization at 15.12% net worth provides a buffer for future challenges.
✦ CU Wrapped 2025 · Annual Review
Tennessee Credit Unions
TN Credit Unions
2025-Q4
127 Credit Unions
Tennessee Credit Unions Show Mixed Performance as Member Growth Stalls and Profitability Declines Despite Strong Capital Position
Key Insights
Year-over-Year Changes
Member Growth (YoY) (Absolute)
▼
2024-Q4
→
2025-Q4
2.85% → -0.69%
(-3.55%)
Indirect Auto Concentration (%) (Absolute)
▼
2024-Q4
→
2025-Q4
6.90% → 6.70%
(-0.21%)
First Mortgage Concentration (%) (Absolute)
▲
2024-Q4
→
2025-Q4
20.38% → 21.22%
(+0.84%)
Asset Growth (YoY) (Absolute)
▼
2024-Q4
→
2025-Q4
7.68% → 2.58%
(-5.10%)
Share Certificate Concentration (%) (Absolute)
▲
2024-Q4
→
2025-Q4
21.56% → 22.35%
(+0.79%)
Quarter-over-Quarter Changes
Member Growth (YoY) (Absolute)
—
2025-Q3
→
2025-Q4
-0.71% → -0.69%
(+0.02%)
Loan Growth (YoY) (Absolute)
▲
2025-Q3
→
2025-Q4
-0.95% → -0.76%
(+0.19%)
Indirect Auto Concentration (%) (Absolute)
▼
2025-Q3
→
2025-Q4
6.93% → 6.70%
(-0.23%)
First Mortgage Concentration (%) (Absolute)
▲
2025-Q3
→
2025-Q4
20.94% → 21.22%
(+0.28%)
Asset Growth (YoY) (Absolute)
▲
2025-Q3
→
2025-Q4
2.22% → 2.58%
(+0.37%)
Key Metrics
Return on Assets
0.71%
▼ YoY3 basis points below national
Net Interest Margin
3.84%
▲ YoY12 basis points above national
Asset Growth
2.58%
▼ YoYMember Growth
-0.69%
Delinquency Rate
0.85%
— YoYNet Worth Ratio
15.12%
AMR Growth
2.60%
Deposit Growth
1.62%
Insufficient historical data for trend visualization
Loan Growth
-0.76%
— YoYMember Engagement
Member Growth (YoY %)
Member engagement deteriorated significantly over the year, with growth falling from positive 2.85% in Q4 2024 to negative 0.69% in Q4 2025. Quarter-over-quarter performance remained stable with minimal improvement of 2 basis points, indicating persistent membership challenges facing Tennessee credit unions.
Profitability
Return on Assets (%)
Net Interest Margin (%)
Profitability weakened across timeframes, with ROA declining to 0.71% from 0.76% last quarter and 0.82% a year ago, now 3 basis points below the national average. NIM provided stability at 3.84%, remaining flat quarter-over-quarter while improving 17 basis points year-over-year.
Growth
Asset Growth (YoY %)
Member Growth (YoY %)
Growth trends showed mixed signals as asset growth accelerated to 2.58% from 2.22% quarter-over-quarter but decelerated sharply from 7.68% year-over-year. Loan growth improved to -0.76% from -0.95% last quarter, though remains 1.28 percentage points below national performance.
Risk & Credit Quality
Delinquency Rate (%)
Net Worth Ratio (%)
Risk metrics remained well-controlled with delinquencies stable at 0.85%, essentially unchanged both quarter-over-quarter and year-over-year. Net worth strengthened to 15.12% from 14.83% last quarter and 14.81% a year ago, maintaining a robust 1.44 percentage point advantage over national levels.
Portfolio Mix
First Mortgage (%)
Indirect Auto (%)
Share Certificates (%)
Portfolio composition shifted toward real estate with first mortgages increasing to 21.22% from 20.94% last quarter and 20.38% year-over-year. Certificate concentrations rose to 22.35%, while indirect auto lending decreased to 6.70%, reflecting changing member preferences and market conditions.
Strategic Implications
- • Implement targeted member acquisition strategies to reverse negative growth trajectory and rebuild market share
- • Focus on operational efficiency initiatives to restore ROA performance amid challenging revenue environment
- • Leverage strong capital position to support strategic investments in digital capabilities and member experience
- • Optimize loan portfolio mix to improve yields while maintaining prudent risk management standards
- • Consider certificate pricing strategies given above-national concentration levels affecting funding costs
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Notable Patterns
How This Cohort Compares to National
Certificate Pct is 2.6pp above national
Net Worth Ratio is 1.4pp above national
Loan Growth (annual) is 1.3pp below national
Indirect Auto Pct is 1.1pp below national
First Mortgage Share is 0.8pp below national
Data Quality Notes
6 metric(s) had extreme values filtered using MAD-based, z-score > 5.0.
Member Growth (YoY) (Absolute)
5 CU(s) excluded
Raw average: -1.62% →
Cleaned average: -0.69%
View excluded credit unions
- FAIR BREAK (24961) - 0.00%
- CHATTANOOGA FIRST (14725) - -26.27%
- DIXIE LINE (67937) - -29.18%
- ENBRIGHT (68148) - -30.07%
- METROPOLITAN TEACHERS (68135) - -35.19%
Total Delinquency Rate (60+ days) (Absolute)
5 CU(s) excluded
Raw average: 1.08% →
Cleaned average: 0.85%
View excluded credit unions
- KELLOGG MEMPHIS EMPLOYEES (13634) - 3.64%
- METROPOLITAN TEACHERS (68135) - 4.52%
- I B E W 175 (14634) - 5.24%
- PARTHENON (4809) - 7.18%
- BASF CHATTANOOGA (12826) - 12.75%
Net Worth Ratio (Absolute)
2 CU(s) excluded
Raw average: 16.08% →
Cleaned average: 15.12%
View excluded credit unions
- FAIR BREAK (24961) - 100.00%
- GREENEVILLE WORKS EMPLS. SAV. ASSN. (68126) - 52.77%
Return on Assets (ROA) (Absolute)
2 CU(s) excluded
Raw average: 0.74% →
Cleaned average: 0.71%
View excluded credit unions
- METROPOLITAN TEACHERS (68135) - 8.79%
- P.I.A.S. (67779) - -3.41%
Asset Growth (YoY) (Absolute)
1 CU(s) excluded
Raw average: 1.78% →
Cleaned average: 2.58%
View excluded credit unions
- FAIR BREAK (24961) - -98.89%
Net Interest Margin (NIM) (Absolute)
1 CU(s) excluded
Raw average: 3.81% →
Cleaned average: 3.84%
View excluded credit unions
- FAIR BREAK (24961) - 0.00%