Large Credit Unions

Member engagement showed mixed signals in Q4 2025, with growth decelerating to 2.72% from 2.97% in Q3 2025 and from 3.20% in Q4 2024. Despite the deceleration of 25 basis points quarter-over-quarter and 48 basis points year-over-year, Large credit unions maintained the industry's strongest member growth rate, outpacing the national average by 3.42 percentage points. The sustained growth above 2.7% reflects the tier's ability to attract and retain members through competitive pricing and comprehensive product offerings, though the deceleration trend warrants monitoring as a potential early indicator of intensifying competition.

Profitability performance was exceptional in Q4 2025, with ROA reaching 0.89%, remaining stable from 0.91% in Q3 2025 while surging from 0.70% year-over-year. This 19 basis point annual improvement represents the strongest ROA gain in the industry, positioning Large credit unions 16 basis points above the national benchmark. NIM expanded to 3.00% from 2.95% quarterly and 2.73% annually, though remaining 72 basis points below national averages. This NIM discount reflects a deliberate strategic choice to offer competitive rates for member acquisition while maintaining superior profitability through operational efficiency and scale advantages.

Growth momentum accelerated significantly in Q4 2025, with asset growth reaching 6.31%, up from 4.60% in Q3 2025 and dramatically higher than 2.63% a year prior. This 171 basis point quarterly acceleration and 368 basis point annual improvement positioned the cohort 3.20 percentage points above national averages. Deposit growth accelerated to 6.65% from 6.42% quarterly, while loan growth decelerated slightly to 4.77% from 4.99% quarter-over-quarter. The strong deposit growth combined with robust asset expansion demonstrates the tier's ability to capture market share while maintaining balanced portfolio growth across funding sources.

Risk metrics showed modest deterioration but remained industry-leading in Q4 2025. Delinquency rates increased to 0.72% from 0.65% in Q3 2025, representing a 7 basis point quarterly rise, while remaining stable at 5 basis points above the 0.67% level from Q4 2024. Despite the uptick, Large credit unions maintained the lowest delinquency rate among all tiers, sitting 18 basis points below the national average. Net worth decreased to 11.40% from 11.62% quarterly but improved from 11.18% annually, reflecting strong capital generation offsetting rapid asset growth. The risk profile remains exceptionally strong relative to industry peers.

Portfolio composition remained heavily weighted toward real estate lending, with first mortgages comprising 38.00% of loans, significantly above the 21.97% national average. This concentration decreased 82 basis points from 38.82% year-over-year, suggesting modest diversification efforts. Certificate deposits represented 29.13% of funding, down 30 basis points annually but still 933 basis points above national levels. Indirect auto lending comprised 16.89%, declining 123 basis points year-over-year from 18.12%, indicating strategic shifts away from dealer-originated lending. The portfolio mix reflects the tier's focus on relationship-based lending and higher-yield deposit products.