Skip to main content

Board Briefed on NCUA’s Voluntary Separation Program, Share Insurance Fund Performance

 


Board Action Bulletin

ALEXANDRIA, Va. (May 22, 2025) – The National Credit Union Administration Board held its third open meeting of 2025 and received a briefing on the agency’s Voluntary Separation Program (VSP) and the performance of the National Credit Union Share Insurance Fund in the first quarter of 2025.

NCUA’s Voluntary Separation Program Meets Operational Needs

The NCUA Board received a briefing from the Executive Director and Deputy Director of the Office of Examination and Insurance on the NCUA’s Voluntary Separation Program. This program is part of the agency’s efforts to comply with Executive Order 14210, Implementing the President’s “Department of Government Efficiency” Workforce Optimization Initiative.

“Throughout this process, my top priority was to design a program that provided employees with certainty, was voluntary and fair, and allowed the NCUA to meet its operational needs,” NCUA Chairman Kyle S. Hauptman said. “The two components of the VSP were the NCUA’s Deferred Resignation Program and the NCUA’s Voluntary Separation Incentive Payment for retirement-eligible employees. Both options were designed in a thoughtful, deliberate manner.”

The briefing described the NCUA’s. The NCUA expects approximately 250 employees to depart as part of this program. To date, 152 employees have been placed on paid administrative leave under the NDRP until they officially separate from the agency no later than December 31, 2025. The remaining NDRP participants will start their administrative leave in the weeks and months ahead. The NCUA’s VSIP option offered a separation incentive payment of $50,000 to employees who are, or will become, regular retirement eligible and who separate from the agency by December 31, 2025.

“If you have chosen to depart the agency through the VSP, know that I am grateful for your years of service and contributions,” Chairman Hauptman said. “For those remaining with the NCUA, I look forward to working with you as we re-imagine the agency. Based on the excellent suggestions for improvement I have received from employees thus far, I have every reason to believe the future is bright, both for the agency and the credit union system.”

The agency’s changes under Executive Order 14210 are expected to generate approximately $75 million in gross savings starting in 2026.

Share Insurance Fund Reports Increases in Net Income, Assets in First Quarter

The Share Insurance Fund reported a net income of $79.8 million, a $1.2 million increase from the fourth quarter of 2024. The Fund’s assets increased 3.14 percent in the first quarter to $23.0 billion from $22.3 billion at the end of 2024. The equity ratio remains at 1.30 percent as of end of 2024.

There were no credit union failures in the first quarter of 2025.

Additionally, for the first quarter of 2025:

  • The number of credit unions with a CAMELS composite rating of 3 decreased from 715 in the fourth quarter of 2024 to 679, a 5.03 percent decrease. Assets for these credit unions decreased to $172.6 billion from $188.8 billion in the previous quarter.
  • The number of credit unions with a CAMELS composite rating of 4 and 5 decreased to 129 compared to 135 reported in the fourth quarter of 2024, a 4.4 percent decrease. However, the level of assets for these credit unions increased nearly 10 percent to $20.3 billion in the first quarter of 2025 compared to $18.5 billion in the fourth quarter of 2024.

The first quarter figures are preliminary and unaudited. Additional information on the performance of the Share Insurance Fund is available on the NCUA’s website.

Follow @TheNCUA on X, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives, and posts videos of open Board meetings online.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

Update: First Responder Credit Unions Academy (FRCUA) Udates

In an ongoing effort to keep your FRCUA education current, modules are continually updated to reflect current NCUA and other regulatory agency requirements. As an example, BSA 26 now includes  Artificial Intelligence and BSA,  Elder Financial Exploitation,  Pig Butchering & BSA, and Executive Order –  Free and Fair Banking.
Post a Comment
Read Complete Article HERE>»

Mortgage Rates Tick Down

MCLEAN, Va.--Mortgage rates moved slightly lower this week, with the 30-year fixed-rate mortgage averaging 6.56%, Freddie Mac reported. “Mortgage rates are at a 10-month low,” said Sam Khater, Freddie Mac’s chief economist. “Purchase demand continues to rise on the back of lower rates and solid economic growth. Though many potential homebuyers still face affordability challenges, consistently lower rates may provide them with the impetus to enter the market.” The 30-year FRM averaged 6.56% as of Aug. 28, down from last week when it averaged 6.58%. A year ago at this time, the 30-year FRM averaged 6.35%. The 15-year FRM averaged 5.69%, unchanged from last week. A year ago at this time, the 15-year FRM averaged 5.51%, Freddie Mac said. ____________________________________________ Check out NCOFCU's additional features: First Responder Credit Union Academy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

SIGN UP FOR YOUR CUSTOM HEALTH INSURANCE SOLUTION TODAY

 https://bizu65.allstatehealth.com/?password=demo ____________________________________________ Check out NCOFCU's additional features: First Responder Credit Union Academy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Wendelville Fire Chief Andrew Pilecki re-elected to FASNY board

Andrew Pilecki, the current fire chief of Wendelville Volunteer Fire Company, has been re-elected to the board of directors of the Firefighters Association of the State of New York. Pilecki has been a member of the fire service for more than four decades, including the past 22 years as a responder with the Wendelville company. Previously he was an active member of Columbia Hook and Ladder Co. He’s also a former assistant director of emergency management for the City of North Tonawanda. FASNY directors serve five-year terms of office. During his first term, Pilecki was instrumental in supporting the association’s pandemic response, championed fire company recruitment and retention efforts, and worked to amplify the needs of Western New York’s volunteer fire service at the state level, according to FASNY. “I’m honored to be re-elected and to continue advocating for the men and women who volunteer their time, risk their safety and serve their communities across the state,” Pilecki said. “...
Post a Comment
Read Complete Article HERE>»

Many CUs Likely to Face New Operating Challenges "Michael Moebs"

04/08/2024 09:04 pm By Ray Birch LAKE FOREST, Ill.—The trend lines don’t lie: Financial institutions charging high overdraft fees will likely face operating challenges in the near future and may even be forced to merge if they don’t follow the market trend of lowering their OD charge. Michael Moebs, economist and chairman of Moebs $ervices, is offering that forecast following his company’s new overdraft study, which has found overall net OD revenue for 2023 was down 5.7%, with banks dipping by 8.1% to $31.4 billion, thrifts falling by 28.6%. and credit unions actually increasing net revenue 2.2%. The study further reveals the m...
Post a Comment
Read Complete Article HERE>»