Q1 2025
The Ledger — Q1 2025
Fed Funds: 4.33% · 10Y: 4.23% · 2Y: 3.89%
Data through March 31, 2025. All figures reflect the universe of 4,411 federally insured credit unions reporting for the quarter. Q1 income-based ratios are annualized (×4). Growth rates are quarter-over-quarter.
Q1 Annualization
Q1 income-based ratios (ROAA, NIM, NCO ratio) are annualized at 4× a single quarter, which amplifies one quarter of noise. A large Q1 move is better compared with the year-over-year change, which the annualization does not distort.
Scope and limitations of this report are at its foot.
System at a Glance
Total Assets
$2,367.2B
Total Loans
$1,653.7B
Total Shares & Deposits
$2,020.5B
Net Income (YTD Q1)
$3.9B
Net Worth Ratio
9.75%
ROAA (annualized)
0.67%
Delinquency Ratio (60+)
0.80%
NCO Ratio (annualized)
0.82%
Capital Adequacy
9.75%
Up 71 bps year-over-year; equity grew 10.7%
Net worth ratio at 9.75%, equity up 10.7% year-over-year: The system net worth ratio rose 9 bps quarter-over-quarter to 9.75% as of March 31, 2025, and is 71 bps above its level a year ago. GAAP equity rose 10.7% year-over-year against asset growth of 2.6%. The regulatory PCA net worth ratio, which excludes unrealized gains and losses on AFS securities, stood at 11.07%, 24 bps above its year-ago level. Capital is highest at the smallest credit unions (13.2% for the under-$100M tier) and lowest at the largest (8.9% for the over-$10B tier).
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q1 2025, Signal 2: NIM Recovery Continues, But ROAA Stalls
Asset Quality
0.80%
Down 18 bps quarter-over-quarter in the seasonal first-quarter decline, and up 2 bps from a year ago
Delinquency at 0.80%, lower on the quarter and higher on the year: The 60+ day delinquency ratio fell to 0.80% as of March 31, 2025, down 18 bps from year-end in the seasonal first-quarter decline, and is up 2 bps year-over-year. The over-$10B cohort carries a 1.13% rate, 33 bps above the system, while the mid-tiers sit near 0.66–0.71%. Annualized net charge-offs were 0.83%, up 2 bps year-over-year, with the largest cohort at 1.41% against roughly 0.48% at the smallest.
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q1 2025, Signal 1: Seasonal Curing Masks a Floor That Stopped Falling
Earnings
3.24%
Up 24 bps year-over-year; the fifth straight quarterly gain
Annualized NIM at 3.24%, ROAA flat at 0.67%: The single-quarter net interest margin annualized to 3.24%, up 24 bps year-over-year and extending the rise from the late-2023 trough. Annualized ROAA was 0.67%, essentially flat against a year ago. Fee income fell about 7% year-over-year and operating expense rose 6%, absorbing the margin gain, while provision expense rose less than 4%. Q1 net income of $3.9 billion was 4.6% above Q1 2024. By tier, the over-$10B tier earned 0.78% and the $500M–$1B tier 0.50%, the lowest of any cohort.
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q1 2025, Signal 2: NIM Recovery Continues, But ROAA Stalls
Loan Growth & Composition
0.85%
The under-$100M tier contracted 0.5%
Loans grew 0.85% quarter-over-quarter: System loans grew 0.85% quarter-over-quarter. By tier, the $1B–$10B cohort grew 1.2% while credit unions under $100M contracted 0.5%, continuing a run of negative loan growth at the smallest tier. On a year-over-year basis loans rose 3.3%. With deposits growing faster than loans in the quarter (see Liquidity), the loans-to-assets ratio fell to 69.9%.
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
Liquidity
69.86%
Down 143 bps quarter-over-quarter as 3.5% seasonal deposit growth outpaced 0.9% loan growth
Deposits grew 3.5% quarter-over-quarter; borrowings fell 34% year-over-year: Shares and deposits grew 3.5% quarter-over-quarter to $2.02 trillion in the seasonal first-quarter inflow, faster than loans, and the loans-to-assets ratio fell 143 bps to 69.9%. Borrowings, FHLB advances among them, fell to $87.4 billion, down 9.4% in the quarter and 34% from a year earlier. Investments rose 2.4%. The largest credit unions have the highest loans-to-assets ratio and the smallest the lowest.
2Q23–1Q25
Source: NCUA Call Report, Q1 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q1 2025, Signal 3: Deposits Surge, But the Funding Mix Is Shifting
Standardized Data Table — Q1 2025
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending March 31, 2025. Q1 income-based ratios are annualized (×4). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q1 2025
| Cohort | CUs | Total Assets | Net Worth | ROAA | NIM | Delinq. (60+) | NCO Ratio | Loans/Assets | Loan Gr. (QoQ) | Asset Gr. (QoQ) |
|---|---|---|---|---|---|---|---|---|---|---|
| Under $100M | 2,626 | $78.0B | 13.16% | 0.67% | 3.65% | 0.92% | 0.47% | 52.34% | -0.54% | 2.74% |
| $100M–$500M | 1,045 | $239.0B | 10.57% | 0.66% | 3.43% | 0.71% | 0.48% | 62.68% | 0.03% | 2.73% |
| $500M–$1B | 286 | $204.1B | 9.48% | 0.51% | 3.28% | 0.71% | 0.62% | 68.42% | 0.63% | 2.52% |
| $1B–$10B | 434 | $1,264.5B | 9.79% | 0.65% | 3.02% | 0.66% | 0.66% | 71.32% | 1.17% | 2.91% |
| Over $10B | 20 | $581.7B | 8.94% | 0.78% | 3.57% | 1.13% | 1.41% | 72.49% | 0.68% | 3.36% |
Scope and limitations
- Q1 income ratios are annualized from a single quarter, which amplifies one quarter's noise.
- Growth rates are quarter over quarter and not seasonally adjusted; the first-quarter fall in delinquency and rise in deposits recur each year.
- The net worth ratio shown is equity over assets, which moves with unrealized securities losses; it is not the regulatory net worth ratio.
- The figures are aggregates for the system and for each asset tier; a single credit union's position cannot be read from them.
Data: Q1 2025 · Period 2Q23–1Q25 · release v2026.2.27 · How the figures are produced
Revisions
. Refrozen to release v2026.2.27; no printed figure changed. Edited for style. Explanations the report does not measure (tax refunds curing delinquency, the unwinding of securities losses, deposits replacing borrowings) and a reading of the trend (a delinquency floor that is not falling) were removed, since The Ledger records figures without a reading.
Cite as: QuarterCall Research, “The Ledger — Q1 2025”, June 15, 2025, release v2026.2.27. https://quartercall.com/research/pulse/2025-q1/
This report is provided for informational and educational purposes only and does not constitute investment, legal, regulatory, or examination advice, nor should it be relied upon as the basis for any decision.
QuarterCall Research is not affiliated with the National Credit Union Administration (NCUA), and its interpretations are not those of the NCUA. Figures are independently computed from NCUA 5300 Call Report filings as submitted by individual credit unions; they are not guaranteed as to accuracy or completeness and may differ from NCUA-published figures.
This report does not consider the specific circumstances of any individual credit union and is not tailored advice. QuarterCall Research has no financial relationship with, and receives no compensation from, any institution referenced.
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