News & Insights

With the majority of first quarter call reports now filed, early results show credit unions are entering  2026 from a position of strength. Capital levels remain solid, liquidity is strong and earnings are resilient, even as growth patterns continue to reflect a familiar seasonal dynamic.

With more than 98% of expected call report filings submitted, this update provides a first look at the year-end trends across the credit union industry.

With the NCUA’s September 30, 2025 Call Report, Catalyst ALM experts now have a clear picture of the credit union industry’s performance through the third quarter.

Halloween brings incantations of ghastly displays and haunting celebrations; similarly, financial markets seem to be concocting a brew of transformation. The recent slashes to interest rates have brought significant changes for credit unions, especially with regard to their assets and liabilities.

Mortgage-backed securities (MBS) often offer higher yields compared to other investment types, making them an attractive investment for credit unions seeking to enhance their income. The higher yields from MBS can help credit unions meet their income requirements and improve their financial performance. However, the benefits of MBS come with associated risks that must be carefully managed.

Since the Fed began increasing the fed funds rate 11 months ago, credit unions across the country have been heavily impacted by the rapid ascent of interest rates. Credit unions experienced some benefits to the rise in rates, but challenges emerged as well. Therefore, it is no surprise that interest rate risk (IRR) tops the list of NCUA’s 2023 Supervisory Priorities.