Nuclear electromagnetic currents are derived in time-ordered perturbation theory within an effective-field-theory framework including explicit nucleons, ∆ isobars, and pions up to one loop, or N 3 LO. The currents obtained at N 2 LO, i.e. ignoring loop corrections, are used in a study of neutron radiative captures on protons and deuterons at thermal energies, and of A=2 and 3 nuclei magnetic moments. The wave functions for A=2 are derived from solutions of the Schrödinger equation with the Argonne v 18 (AV18) or CD-Bonn (CDB) potentials, while those for A=3 are obtained with the hyperspherical-harmonics-expansion method from a realistic Hamiltonian including, in addition to the AV18 or CDB two-nucleon, also a three-nucleon potential. With the strengths of the ∆-excitation currents occurring at N 2 LO determined to reproduce the n-p cross section and isovector combination of the trinucleon magnetic moments, we find that the cross section and photon circular polarization parameter, measured in n-d and n-d processes, are underpredicted by theory, for example the cross section by (11-38)% as the cutoff is increased from 500 to 800 MeV. A complete analysis of the results, in particular their large cutoff dependence, is presented.