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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.

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