California & Nevada Deposit-Loan Trends Offer Glimpse Into 2025

As California and Nevada households embark on a new year, credit union loans and deposits are expected to moderately increase in many local regions due to existing and new members proactively managing their savings-and-loan needs. Locally headquartered credit unions across both regions are prepared to assist their members and communities navigate the evolving economic landscape in 2025.

Dr. Robert Eyler, contract economist for the California and Nevada Credit Union Leagues, said the cost of local goods and services — alongside the cost of borrowing money — has continued garnering attention as consumers keep a close eye on their finances, inflation, interest rates, and prioritize financial stability.

The latest credit union data in California and Nevada, recently released by the National Credit Union Administration (NCUA) and analyzed by the Leagues, demonstrates this desire to balance finances, leverage economic mobility, and employ financial opportunities in the coming year.

Latest California and Nevada CU Trends

Credit unions in California displayed the following recent trends that have ramifications for the first half of 2025:

• Deposits: $238 billion (-1 percent decrease).
• Loans: $197 billion (5 percent increase).
• Members: 14 million (3 percent increase); 254 credit unions locally headquartered in 36 counties.
• Year-over-year as of September 30, 2024.

Credit unions in Nevada displayed the following recent characteristics that will have an impact in the first half of 2025:

• Deposits: $7.3 billion (6 percent decrease).
• Loans: $4.9 billion (7 percent increase).
• Members: 403,300 (1 percent increase); 13 credit unions that are locally headquartered in eight counties.
• Year-over-year as of September 30, 2024.

Rates, Inflation, Consumers, and Choices

Many local credit union members are most likely taking a hard look at their credit card statements, auto loans, mortgages, home equity loans, and personal loans, searching for opportunities to balance their financial obligations and prioritize their financial health in 2025, Eyler noted. The beginning of a new year has marked a time for reflection and anticipation as consumers consider recalibrating their financial situation after navigating a turbulent couple of years of inflation.

He pointed out that 2021 – 2023 was most recently followed in 2024 by a disinflationary environment back to the historic annual, longer-term pattern. Economists are closely monitoring the inflation topic, hoping consumer prices stay relatively under control while acknowledging the uncertainties that lie ahead in an economy forecasted to maintain steady growth over the next 12 months. After experiencing fluctuations from inflationary conditions and interest rate changes over the past few years, many households are entering a new chapter.

"The interconnectedness of local job markets, wages, federal policies, and changes in prices and interest rates cannot be understated as workers and consumers adapt to shifting and encouraging, yet cautiously optimistic, circumstances," said Eyler, who is also a longtime board member of Redwood Credit Union, economist at Sonoma State University, and president of Economic Forensics and Analytics. "Fortunately, local credit unions are uniquely positioned to meet the evolving needs of their communities."

Empowering Members to Thrive in the Year Ahead

Local credit union leaders are prepared to play a vital role in supporting communities by providing essential financial services and education to individuals, families, and households in 2025.

As not-for-profit financial institutions, credit unions serve their member-owners' best interests. They remain committed to providing financially accessible products, empowering California and Nevada residents to thrive in the year ahead.

"Many individuals and households are seeking resources to track spending, create budgets, identify potential savings, and capitalize on competitive banking options to stretch their money further," Eyler said. "Credit unions are active partners in helping their member-owners navigate these choices. They understand the day-to-day challenges, objectives, and financial goals of their members, and they're dedicated to providing the tools and resources members need to succeed."

Note on data: Loans include first mortgages, HELOCs/home equity loans (combined), new auto loans, used auto loans, credit card lending, personal loans, and business loans. Deposits include checking accounts, savings accounts, money market accounts, certificates of deposit (CDs), and IRA/Keogh accounts. Loan and deposit percentage increases or decreases represent dollar amount changes.

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