After a year defined by margin pressure, consolidation and uneven loan demand, credit union leaders are entering 2026 with a familiar but unresolved question: what matters more right now—asset growth or membership growth?
The two are tightly linked, often reinforcing each other. An indirect auto loan originated at a dealership can bring in a new member overnight; a new member, in turn, may deepen the relationship later with a mortgage, savings account or credit card. Yet the sequence—and the strategic emphasis—can vary widely depending on size, market, and business model.
At a national level, both measures continued to rise through 2025, though not dramatically. According to the National Credit Union Administration, federally insured credit unions held $2.40 trillion in assets at the end of the third quarter of 2025, an increase of $86 billion, or 3.7%, from a year earlier. Membership rose by 3.1 million, or 2.2%, to 145 million. Full-year data has not yet been released.
For individual institutions, however, the balance between assets and members is less abstract and more operational.
At Deseret First Credit Union in West Valley City, Utah, growth in both metrics moved largely in tandem in 2025. The credit union reported $1.2 billion in assets and 86,000 members as of Sept. 30, up from $1.1 billion in assets and 80,848 members a year earlier. It earned $6.4 million in the first three quarters of 2025, slightly ahead of the prior year.
“We typically see a strong correlation between asset and membership growth,” Shane London, Deseret First’s president and chief executive, told Tyfone. “If membership growth produces strong results we typically see that show up in the asset growth results as well.”
That relationship, he cautioned, is not always immediate. Deseret First added members in 2025 through a mix of indirect auto lending and direct channels, with indirect loans accounting for a little under half of new members. About 15% to 20% of those indirect members later adopted additional products, strengthening the relationship over time.
Looking ahead, London expects indirect lending volume to decline, a trend that could temper membership gains. Even so, he anticipates membership growth of 4% to 5% in 2026, above peer projections.
For PFCU Credit Union in Portland, Mich., the logic runs in the same direction but with a sharper focus on execution. The $820 million-asset institution had 56,814 members as of Sept. 30, 2025, up modestly from 55,863 a year earlier. Assets rose from $801 million to $820 million over the same period, while earnings climbed to $4.9 million from $3.4 million.
“The growth of both assets and membership is crucial,” Michele Makley, PFCU’s president and chief executive, told Tyfone. “However, achieving membership growth should naturally lead to asset growth.”
Makley said the challenge is ensuring that new relationships are fully developed. That means account-opening systems—online and in-branch—that capture as much business as possible and quickly surface members’ needs. She also sees opportunity within PFCU’s existing membership base, not just among new joiners.
The credit union has set internal strategic targets, including a so-called Big Hairy Audacious Goal, that cascade down to departmental objectives. In 2026, a major emphasis will be on expanding online banking capabilities so digital-first members have access to the same range of products and services as those who prefer branches.
At the smaller end of the spectrum, Vanderbilt Credit Union in Nashville is confronting the growth question through the lens of scale. The $53 million-asset institution had about 7,000 members as of Sept. 30, up from 5,629 a year earlier, and earned $165,300 through the third quarter.
In November, Vanderbilt announced plans to merge with Fortera Credit Union, a $914 million-asset institution based in Clarksville, Tenn. If approved, the deal would create a nearly $1 billion credit union serving more than 90,000 members, with completion expected in the third quarter of 2026.
“Our focus this year is purposeful asset growth, supported by continued membership growth within the Vanderbilt and Vanderbilt Health communities,” said Mario Avila, Vanderbilt’s board chair and an assistant professor at Vanderbilt University’s Owen Graduate School of Management. “With the merger underway, scale matters because it allows us to better serve members through stability, access, and long-term value.”
The merger also reflects a strategic choice on technology. Rather than building new digital capabilities internally, Vanderbilt opted to “buy” them through Fortera’s existing infrastructure. Avila said the priority now is integration and execution so members experience better tools without disruption.
Taken together, the examples suggest that in 2026, credit unions are less likely to frame the issue as assets versus members. Instead, the focus is shifting to the quality, durability and scalability of growth—and whether institutions have the technology and processes to turn new members into long-term relationships.
Portland, Oregon-based Tyfone is a leading provider of consumer and commercial digital banking services for community financial institutions. At Tyfone, we believe that as credit unions of all sizes continue to merge and acquire, adopting digital banking technologies becomes crucial in maintaining operational continuity and offering an enhanced customer experience to the acquired users.
