In what can only be described as an eventful year, 2025 saw credit unions not only weather the storm but actually thrive amid the chaos. Despite many challenges, credit unions managed to increase their membership, loans, and deposits, according to the most recent quarterly statistics from the National Credit Union Administration (NCUA). The industry recorded new highs in terms of assets, deposits, loans, and members by the end of the third quarter.
This overwhelming success, however, did not come without its fair share of challenges. Let’s delve into five major issues that shaped the credit union industry in 2025.
Consolidation Continued Unabated
In terms of consolidation trends, 2025 mirrored the previous year. The NCUA reported 121 mergers among credit unions through the first nine months of 2025, consistent with the same period in 2024. Overall, the assets involved in these deals were remarkably similar, totaling $11.7 billion in 2025 compared to $11.9 billion in 2024.
While the majority of credit union mergers in 2025 were relatively small, there were a few sizeable deals. For instance, ENT Credit Union in Colorado Springs, Colorado, and Wings Credit Union in Apple Valley, Minnesota, announced a merger of equals in April. This merger, due to close on January 1, 2026, will create a new institution operating under the Wings brand.
Bank Acquisitions Remain Contentious
Another contentious issue in 2025 was the continued acquisition of banks by credit unions. According to S&P Global, credit unions announced deals for 16 banks in 2025, down from the record 22 in 2024, but still considerable by historical standards. Michael Bell, a leading advisor of credit unions seeking to acquire banks, anticipates the trend to continue into 2026, despite opposition from bank industry trade groups.
Political Turmoil at the NCUA
The NCUA, credit unions’ governing body, found itself in the middle of a political storm in 2025. In April, President Trump fired two of its Democratic members, leaving Republican Kyle Hauptman as the sole member. The dismissals were challenged in court, with former NCUA Chairman Todd Harper characterizing his firing as a violation of “the bipartisan statutory framework adopted by Congress to protect credit union members and their deposits.” The case remains ongoing.
De Novo Growth Remains Limited
Just like the banking sector, the growth of new credit unions, or de novos, was minimal in 2025. Only three charters received final approval that year: Heritage Hub Federal Credit Union, African Diaspora Federal Credit Union, and Haven Federal Credit Union. This number is only slightly up from the four charters issued in 2024.
Decline in Auto Lending Continues
Finally, a long-term decline in auto loans was another significant trend observed in 2025. At the end of the third quarter, credit unions reported auto loans totaling $482.4 billion, representing about 28% of the industry’s $1.7 trillion loan portfolio. This is a stark contrast to the situation seven years ago when auto lending accounted for nearly 36% of credit unions’ total loans.
Despite the hurdles, credit unions continue to stand tall, demonstrating resilience and adaptability in an ever-changing financial landscape. For more insights, refer to the source here.
