Texas Credit Unions

Member engagement weakened as growth decelerated to -0.36% in Q3 2025 from -0.05% in Q2 2025, though still outperforming the national decline of -0.61%. Year-over-year comparison shows a significant reversal from positive 1.73% growth in Q3 2024, indicating mounting competitive pressures in member acquisition and retention.

Profitability remained robust with NIM increasing to 3.93% from 3.88% quarter-over-quarter and 3.77% year-over-year, significantly outpacing the national benchmark by 21 basis points. ROA held stable at 0.71% quarter-over-quarter and improved from 0.66% year-over-year, though trailing the national average by 7 basis points.

Growth momentum accelerated across key metrics quarter-over-quarter, with asset growth reaching 1.44% from 1.07% and deposit growth improving to 1.21% from 0.81%. Loan growth remained negative at -1.11% but accelerated from -1.45% last quarter, still lagging the national benchmark by 1.31 percentage points.

Risk metrics remained well-controlled with delinquencies stable at 0.84% quarter-over-quarter, up modestly from 0.75% year-over-year but matching national levels. Net worth strengthened to 14.99% from 14.73% quarter-over-quarter and 14.61% year-over-year, providing substantial capital cushion above the national benchmark.

Portfolio composition shifted toward certificates, increasing to 20.86% from 20.23% quarter-over-quarter and 19.48% year-over-year, now exceeding the national concentration. First mortgage exposure grew modestly to 15.85% while remaining below national levels. Indirect auto lending held steady at 7.19%.