Data Underscores Why Credit Unions Must Remain Tax-Exempt – No Matter Their Size

Recent economic and credit union data reinforce a powerful truth: credit unions are vital to the financial well-being of Americans, especially during uncertain times. That’s why protecting the credit union tax exemption—for all credit unions, regardless of asset size—is more important than ever. 

TruStage reports that in 2024, credit unions gained 3.3 million new members—an impressive number, though notably slower than previous years—demonstrating the continued demand for not-for-profit financial services even amid economic uncertainty. Loan balances are projected to grow 5% in 2025, nearly doubling last year’s pace, a sign that credit unions are stepping up to meet consumer needs. 

Yet challenges persist. The personal savings rate averaged just 4.6% in 2024—well below the historical norm—creating headwinds for deposit growth. State-chartered credit unions also face rising delinquencies, increased loan loss provisions, and a steady decline in non-interest income, according to NASCUS’ latest industry report. Despite these pressures, nearly 90% remained profitable in 2024, underscoring their resilience and commitment to members. 

CrossState continues to advocate at the state and federal level to ensure that credit unions retain their tax-exempt status and can continue delivering value to 6.4 million members in Pennsylvania and New Jersey. 

Take action today: Tell lawmakers that credit unions’ tax-exempt status is fundamental to their mission—large and small—and must remain untouched!