Desert Financial Credit Union (68713), a $9.2B credit union headquartered in Phoenix, AZ, led by CEO Meshey, reported $4.9B in outstanding loans at the end of 2025 Q3, an increase of $632.6M (+15.0%) compared to the same quarter last year.
The credit union's 58.4% loan-to-share ratio reflects a conservative lending posture with ample liquidity for future loan growth. With 141,867 loans outstanding to 497,868 members, the average loan balance stands at $34K.
At a high level: growth optionality remains strong with ample deposit runway.
Portfolio Composition
Desert Financial Credit Union's loan portfolio is dominated by Indirect Loans, comprising 22.6% of total loans. This diversified approach balances risk across multiple loan categories.
Loan Portfolio Breakdown
| Loan Type | Balance | % of Portfolio |
|---|---|---|
| Indirect Loans | $1.1B | 22.6% |
| Used Vehicles | $1.0B | 20.7% |
| Business Loans | $898.7M | 18.5% |
| New Vehicles | $510.0M | 10.5% |
| Other Unsecured | $85.9M | 1.8% |
Source: NCUA 5300 Call Reports (2025_Q3)
Quarterly Loan Trends
Sustained loan growth of this magnitude typically reflects competitive pricing, expanded indirect lending channels, or successful member acquisition campaigns.
Quarterly Trend
| Period | Total Loans | QoQ Change | Loan/Share |
|---|---|---|---|
| 2024 Q2 | $4.1B | 53.8% | |
| 2024 Q3 | $4.2B | +2.3% | 54.6% |
| 2024 Q4 | $4.3B | +2.2% | 54.2% |
| 2025 Q1 | $4.5B | +3.3% | 53.7% |
| 2025 Q2 | $4.6B | +4.1% | 56.0% |
| 2025 Q3 | $4.9B | +4.6% | 58.4% |
Source: NCUA 5300 Call Reports
Credit Quality & Risk
Desert Financial Credit Union reports $17.4M in loans delinquent 60+ days, representing a 0.36% delinquency rate. This healthy delinquency rate reflects disciplined underwriting and effective collections.
Year-to-date net charge-offs of $7.4M represent a 0.15% annualized loss rate. This low charge-off rate indicates strong credit performance.
Peer Comparison
Among 80 credit unions in its $4.6B–$13.8B asset peer group, Desert Financial Credit Union ranks in the 96th percentile for loan growth. This positions the credit union as a lending leader among similarly-sized institutions.
Outlook
With strong loan growth momentum, Desert Financial Credit Union appears well-positioned for continued portfolio expansion. Key factors to monitor include deposit growth to fund lending, credit quality trends, and competitive dynamics in the AZ market.
Desert Financial Credit Union's Q4 2025 results, expected in early 2026, will provide further insight into whether this growth trajectory can be sustained.
Track This Credit Union
Monitor Desert Financial Credit Union's quarterly loan performance, credit quality metrics, and portfolio composition with Finleet Terminal.
Data Sources: NCUA 5300 Call Reports (2025_Q3), NCUA Historical Data (2007-present), Finleet Proprietary Analysis
Methodology: Year-over-year growth calculated comparing 2025_Q3 to same quarter prior year. Peer groups defined as credit unions within 50% asset range. Delinquency rate calculated as loans 60+ days past due divided by total loans. Crisis comparison uses Q3 2008 as baseline.