Texas Credit Unions

Member engagement deteriorated significantly with growth decelerating to -0.70% in Q4 2025, worsening from -0.36% in Q3 and representing a dramatic 2.16 percentage point decline from +1.46% growth in Q4 2024, indicating fundamental membership retention challenges across Texas institutions.

Profitability showed mixed trends with ROA decreasing to 0.64% from 0.71% quarter-over-quarter but improving from 0.59% year-over-year. NIM remained stable at 3.92% quarterly while strengthening 13 basis points annually, providing a 20 basis point advantage over the national 3.72% benchmark.

Growth momentum accelerated with assets expanding 2.21%, up from 1.44% in Q3 and 1.54% a year ago. However, loan growth decelerated to -1.31% from -1.11% quarterly, while deposit growth accelerated to 1.84% from 1.21%, creating a concerning loan-deposit growth divergence.

Risk metrics showed deterioration with delinquencies increasing to 0.91% from 0.84% quarterly and 0.85% annually. However, net worth strengthened to 15.24% from 14.97% quarterly and 14.69% annually, maintaining a robust 1.56 percentage point cushion above national levels at 13.68%.

Portfolio composition shifted toward certificates, rising to 21.19% from 19.69% annually, exceeding the national 19.80%. First mortgage concentration increased to 16.04% from 15.88% quarterly and 15.43% annually, while indirect auto holdings declined slightly to 7.09% from 7.21% year-over-year.