USAA Federal Savings Bank says it is finally back in the black in 2025, ending a years-long stretch of losses, heavy compliance costs and tense talks with regulators. The comeback may look modest compared with some national banking heavyweights, but for the member-owned institution that caters to the military community, it is a big psychological swing. In San Antonio, where USAA was born and still ranks as a powerhouse employer, the numbers will be treated as a verdict on whether its fixes to governance and internal controls are actually working.
Numbers Behind The Turnaround
The bank reported roughly $432 million in net income on about $6.84 billion in revenue in 2025, with nearly $108 billion in assets at year-end, marking its first full-year profit since 2019. Executives point to membership growth, more card and deposit activity and a record member distribution as key drivers, even as rating agencies cut the parent company’s scores in mid-2025. Those figures were laid out by the San Antonio Express-News.
Regulators Still Watching
None of this means the watchdogs have backed off. In December 2024, the Office of the Comptroller of the Currency issued a far-reaching cease-and-desist order that limits certain product launches and membership expansion until USAA Federal Savings Bank closes long-standing compliance gaps. In 2022, the Financial Crimes Enforcement Network hit the bank with a combined $140 million penalty tied to anti-money-laundering failures, a reminder of why examiners remain locked in. See the Office of the Comptroller of the Currency and FinCEN for the enforcement details.
Management And The Fixes
Bank leadership argues that the same changes regulators demanded are helping fuel the 2025 rebound. Michael Moran, named permanent president in January 2025, told the San Antonio Express-News, "I think 2025 was an absolute pivotal year for us," crediting tighter risk controls, expanded fraud protection and targeted member incentives with improving performance. The bank has also tweaked customer protections, including a larger no-fee overdraft cushion, and says it is redirecting spending from outside consultants into in-house risk and technology teams. As reported by the San Antonio Express-News.
What It Means For San Antonio
For San Antonio, USAA’s recovery is not just a balance-sheet story. The parent company returned roughly $3.7 billion to members in 2025 and offered interest-free loans during the October-November shutdown, moves that rippled through household budgets across the metro area. The company also remains deeply intertwined with the region’s military economy. Local officials and rank-and-file employees alike will be tracking whether the combination of rising revenue and stronger internal controls translates into steadier service and fewer regulatory emergencies for both civilian and military customers. See local coverage by MySanAntonio.
Legal Outlook
Staying in the profit column does not wipe away USAA’s regulatory baggage. Federal overseers still expect the bank to complete a slate of corrective actions, and earlier penalties remain part of its official record. The OCC’s December 2024 order spells out detailed remediation steps, and supervisors had already imposed an $85 million civil penalty for compliance failures, according to local reporting. Until examiners are satisfied that the fixes are documented and sustainable, the bank will continue to operate under tight limits on expansion and very close supervision. For background, see the OCC order and reporting by KSAT.
