Tudovu Research · Q4 2025 NCUA call-report data

Does fast growth eat capital? The NCUA data says no.

The shrinking quartile (averaging -1.27% growth) has a 11.52% net worth ratio. The fastest-growing quartile (averaging 14.37% growth) has 11.62%. Fast growers are at least as well-capitalized as shrinkers — possibly more so.

All 1,809 federally insured US credit unions with $100M+ in assets, split into asset-growth quartiles. Outcome: net worth ratio at the latest quarter.

Asset-growth quartileAvg (asset-growth quartile)RangeCredit unionsAvg net worth ratioMedian net worth ratio
Q1 — shrinking / flat-1.27%-27.33% – 1.99%45311.52%10.58%
Q2 — slow growth3.60%1.99% – 5.01%45211.84%11.28%
Q3 — medium growth6.48%5.02% – 8.13%45212.11%11.46%
Q4 — fast growth14.37%8.15% – 145.19%45211.62%10.98%

What this means

The intuition that fast growth eats capital — "every dollar of new assets needs to be backed by net worth" — would predict net worth ratio falls as growth rises. The 2025 data shows the opposite pattern: net worth ratio is broadly flat across growth quartiles, and the fastest growers are slightly better-capitalized than the slowest.

Causation likely runs the other way. CUs that are well-capitalized have the regulatory room to grow aggressively, and CUs that are capital-constrained pull back from lending and member acquisition. Fast growth isn't depleting capital — strong capital is enabling growth.

Practical implication: if you're holding back growth because you're worried about capital, the data doesn't support that worry. The fast-growing cohort isn't operating on thin capital — they're operating on healthy capital and putting it to work. The CUs that should worry are the shrinking ones; they're losing share without the capital cushion advantage they should be earning.

Tudovu Research is published from NCUA call-report data via CU Growth Plan. New analysis each quarter as fresh data lands.

Want this analysis for your peer group?

Tudovu's Industry Data Explorer runs this same analysis on a custom peer set — pick the asset tier, state, charter type, or specific competitors and we'll show you where your CU sits in the curve.

See Tudovu →Industry Data Explorer