Q2 2025
The Ledger — Q2 2025
Fed Funds: 4.33% · 10Y: 4.24% · 2Y: 3.72%
Data through June 30, 2025. All figures reflect the universe of 4,370 federally insured credit unions reporting for the quarter. Q2 income-based ratios are annualized (×2). Growth rates are quarter-over-quarter.
Q2 Annualization
Q2 income-based ratios (ROAA, NIM, NCO ratio) annualize the half-year YTD figure by ×2. They are not directly comparable to a Q1 reading (annualized ×4 off a single quarter); the year-over-year change is the cleaner comparison.
Scope and limitations of this report are at its foot.
System at a Glance
Total Assets
$2,379.0B
Total Loans
$1,681.2B
Total Shares & Deposits
$2,022.0B
Net Income (YTD H1)
$8.8B
Net Worth Ratio
9.97%
ROAA (annualized)
0.75%
Delinquency Ratio (60+)
0.91%
NCO Ratio (annualized)
0.79%
Capital Adequacy
9.97%
Up 68 bps year-over-year; equity grew 11.1%
Net worth ratio at 9.97%, higher on the quarter and the year: The system net worth ratio rose 22 bps quarter-over-quarter to 9.97% as of June 30, 2025, 68 bps above its level a year ago. Equity rose 11.1% year-over-year against asset growth of 3.6%; the ratio includes unrealized losses on AFS securities. The regulatory PCA net worth ratio, which excludes them, stood at 11.21%, up 16 bps year-over-year. By tier, the ratio is 13.5% at the under-$100M cohort and 9.1% at the over-$10B cohort.
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2025, Signal 3: Margin Gains Are Decelerating
Asset Quality
0.91%
Up 11 bps quarter-over-quarter from the seasonal first-quarter low; up 6 bps year-over-year
Delinquency at 0.91%, higher on the quarter and the year: The 60+ day delinquency ratio rose to 0.91% as of June 30, 2025, up 11 bps from Q1's seasonal low of 0.80% and 6 bps above Q2 2024. The over-$10B cohort reached 1.25%, the highest of any tier and 34 bps above the system; the mid-tiers sit near 0.76–0.82%. Annualized net charge-offs fell to 0.79%, down 4 bps quarter-over-quarter, and the largest cohort's loss rate eased to 1.33%.
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2025, Signal 1: Delinquency Approaching 1% — No Sign of Stabilization
Earnings
3.28%
Up 26 bps year-over-year; the quarter added 4 bps against Q1's 15
Annualized NIM at 3.28%, ROAA at 0.75%: The half-year net interest margin annualized to 3.28%, up 26 bps year-over-year. Annualized ROAA rose to 0.75%, 7 bps above a year ago, and half-year net income of $8.8 billion was 13% above H1 2024. By tier, the $500M–$1B tier earned 0.61%, the lowest of any cohort, and the over-$10B tier 0.79%, with the system's highest charge-off rate. The margin's quarter-over-quarter increment was 4 bps, against Q1's 15.
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2025, Signal 3: Margin Gains Are Decelerating
Loan Growth & Composition
1.66%
Up from Q1's 0.52%; by tier, the $100M–$500M tier led at 2.0%
Loans grew 1.66% quarter-over-quarter: System loans grew 1.66% quarter-over-quarter, more than triple Q1's 0.52%. Growth was broad across tiers. By tier, each measured against its own prior quarter, the $100M–$500M tier led at 2.0%, the over-$10B tier matched it at 2.0%, and the under-$100M cohort turned positive at 0.8% after a string of contractions. On a year-over-year basis loans rose 3.9%. Loans grew faster than deposits in the quarter, and the loans-to-assets ratio rose (see Liquidity).
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
Liquidity
70.67%
Up 81 bps quarter-over-quarter as deposits grew 0.1% and loans 1.7%
Deposits flat, loans and borrowings up: Shares and deposits grew 0.1% quarter-over-quarter to $2.02 trillion after the seasonal first-quarter inflow, while loans grew 1.7%, so the loans-to-assets ratio rose 81 bps to 70.7%. Borrowings rose 3.1% quarter-over-quarter to $90.1 billion, the first increase in over a year, and remain 27% below their year-ago level.
3Q23–2Q25
Source: NCUA Call Report, Q2 2025 · release v2026.2.27 · QuarterCall
See also: System Signals — Q2 2025, Signal 2: The Funding Gap Reopens
Standardized Data Table — Q2 2025
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending June 30, 2025. Q2 income-based ratios are annualized (×2). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2025
| Cohort | CUs | Total Assets | Net Worth | ROAA | NIM | Delinq. (60+) | NCO Ratio | Loans/Assets | Loan Gr. (QoQ) | Asset Gr. (QoQ) |
|---|---|---|---|---|---|---|---|---|---|---|
| Under $100M | 2,590 | $77.2B | 13.45% | 0.76% | 3.71% | 1.04% | 0.45% | 52.76% | 0.82% | 0.09% |
| $100M–$500M | 1,041 | $239.0B | 10.80% | 0.74% | 3.49% | 0.82% | 0.48% | 63.41% | 2.02% | 0.68% |
| $500M–$1B | 284 | $203.4B | 9.72% | 0.61% | 3.33% | 0.81% | 0.57% | 69.46% | 1.73% | 0.46% |
| $1B–$10B | 433 | $1,251.9B | 10.06% | 0.75% | 3.07% | 0.76% | 0.62% | 72.10% | 1.70% | 0.53% |
| Over $10B | 22 | $607.4B | 9.12% | 0.79% | 3.56% | 1.25% | 1.33% | 73.26% | 1.99% | 0.97% |
Scope and limitations
- Q2 income ratios annualize the half-year figure and are not directly comparable to a Q1 reading, which is annualized from a single quarter.
- Growth rates are quarter over quarter and not seasonally adjusted; the rise in delinquency and the stall in deposits each follow a seasonal first quarter.
- The net worth ratio shown is equity over assets, which moves with unrealized securities losses; it is not the regulatory net worth ratio.
- Tier loan growth is for the institutions in a tier at quarter-end against their own prior quarter; it includes loans acquired by merger and is not comparable to the system rate.
- The figures are aggregates for the system and for each asset tier; a single credit union's position cannot be read from them.
Data: Q2 2025 · Period 3Q23–2Q25 · 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 (the unwinding of securities losses, the post-refund reversal in delinquency, the spring lending season), readings of the trend (a ratcheting delinquency floor, a reopening funding gap), a round-number milestone for the net worth ratio and a forecast for deposit growth in the second half were removed, since The Ledger records figures without a reading.
. Figures corrected to release v2026.2.2: system loan growth is 1.66% for the quarter and 0.52% for Q1 (was 1.79% and 0.85%), deposit growth is 0.1% (was 0.2%), half-year net income is $8.8 billion (was $8.9 billion) and Q1 delinquency is 0.80% (was 0.81%). The margin's quarterly increment is given as measured, 4 bps after Q1's 15; it was not the smallest of the recovery. Tier loan growth is marked as measured on its own basis.
Cite as: QuarterCall Research, “The Ledger — Q2 2025”, September 15, 2025, release v2026.2.27. https://quartercall.com/research/pulse/2025-q2/
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.
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