2025 Annual Report

On behalf of the National Credit Union Administration, I am pleased to present our 2025 Annual Report .

As required by the Federal Credit Union Act¹, this report reviews the agency's performance in 2025 and includes the audited financial statements for NCUA's four funds:

• the National Credit Union Share Insurance Fund,
• the NCUA Operating Fund,
• the Central Liquidity Facility; and
• the Community Development Revolving Loan Fund.

Each of these funds received an unmodified, or "clean," audit opinion and reported no material weaknesses. The financial and performance data contained in this report are reliable, complete, and consistent with the Office of Management and Budget circulars A-11, A-123, and A-136, as applicable.²

NCUA's mission is to enable access to financial services by facilitating safe, sound, and resilient credit unions. The agency insures members' share deposits at federally insured credit unions and safeguards the National Credit Union Share Insurance Fund from losses.

Although NCUA continues to closely monitor some indicators of potential stresses on credit union performance - including an increase in loan portfolio delinquencies - the credit union system overall remained strong in 2025. The Share Insurance Fund, which provides insurance coverage of up to $250,000 for individual accounts at federally insured credit unions, and the credit union system remained well-capitalized with sufficient liquidity throughout 2025.

Summarized on the next page are NCUA's more notable accomplishments in 2025, along with its priorities in 2026.

Reorganization

On February 11, 2025, President Trump issued Executive Order (EO) 14210, "Implementing the President's Department of Government Efficiency Workforce Optimization Initiative," which directed all federal agencies to evaluate their organizational structures and implement workforce optimization measures.

NCUA conducted a baseline review of its organizational structure as of January 20, 2025, and established workforce reduction and structural realignment goals. By the end of 2025, the agency achieved a 23 percent reduction in headcount through a voluntary separation program.

Moving forward, NCUA remains focused on our statutory requirements and the mission critical work, which will impact the organizational end state. We are focused on the long-term success of the agency and the credit unions we protect and serve.

GENIUS Act Implementation

On July 18, 2025, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law (P.L. 119-27). The GENIUS Act requires the development of a regulatory framework for payment stablecoins and provides pathways for regulation at both the federal and state levels.

In 2025, NCUA completed substantial work to implement the GENIUS Act and is committed to meeting all of the deadlines established by law. The agency is also coordinating implementation with the other primary federal payment stablecoin regulators.

When it comes to rapidly evolving technology, it is always challenging to strike the right balance between risk aversion and optimism. However, NCUA views implementation of the GENIUS Act as a significant opportunity for the future of the credit union movement and this focus will remain central to our work in 2026.

Enhancing the Clarity and Efficiency of the Exam and Supervision Program

A clear and efficient examination program is one in which all parties understand the requirements, conclusions, and findings. Consistent with this view, in 2025, the agency revised its Document Request List processes to ensure that the agency remains risk-focused while reducing unnecessary burden on credit unions.

NCUA also modified the exam scheduling policy to extend the exam cycle for well-run credit unions. As a result, the time between completion and start date for exams of some well-run credit unions could be 24 months.

NCUA also changed how we approach risk ratings and reputational risk. Consistent with EO 14331, "Guaranteeing Fair Banking for All Americans," the agency ceased using or referring to reputation risk. As a result, NCUA employees no longer base supervisory concerns on reputation risk. Also, NCUA has discontinued the practice of assigning ratings to the Risk Categories (also referred to as Risk Areas) for the examination and supervision program.

Moreover, the agency recognizes that it must avoid both the perception and the reality of regulation through enforcement. I published a "No Regulation-by-Enforcement" policy statement in which I clarify that NCUA enforcement actions shall only occur in the case of clear or significant violations of law or regulation. NCUA is committed to holding credit unions to established, statutory and regulatory requirements in a fair and transparent manner.

Developing and Implementing an Easy-to-Navigate Regulatory Framework for Current and Future Credit Unions

In 2025, NCUA, along with other federal agencies, began a major initiative to review, and revise, as appropriate, all its regulations. This review follows EO 14192, "Unleashing Prosperity Through Deregulation."

In 2026 and beyond, NCUA's mission is to enable access to financial services by facilitating safe, sound, and resilient credit unions. With public input, NCUA is reviewing all existing regulations to ensure that the regulations documented in Title 12, Chapter VII of the Code of Federal Regulations are focused on the safety, soundness, or resilience of credit unions.

The process of reviewing regulations, policies, and procedures to ensure NCUA is focused on fulfilling its mission and statutory requirements is a significant change for the agency, and one that entails major internal adjustments that will enable NCUA to get back to basics with regulations, policies, and risk-focused exams while also protecting the Share Insurance Fund. Reducing unnecessary regulatory burdens and removing obsolete provisions will also create new opportunities for NCUA to be more innovative, efficient, and forward-thinking in achieving its mission.

Other Highlights

Other highlights of 2025 include the chartering of three new credit unions: Heritage Hub Federal Credit Union in Houston, Texas, African Diaspora Federal Credit Union in St. Louis, Missouri, and Haven Federal Credit Union in Santa Clara, California. NCUA also released Valwood Park Federal Credit Union in Carrollton, Texas from conservatorship, returning control to its member owners. Such actions well reflect the strength and resilience of the credit union system.

Closing Thoughts

In sum, 2025 was a significant chapter in NCUA's history as well as an extraordinary year of progress and achievement. The work completed across the agency reflected a deliberate focus on thoughtful decision-making, transparency, and accountability to credit unions and their members.

Looking ahead, NCUA will continue working with its stakeholders to enhance the credit union system through innovation, transparency, and a regulatory structure that allows credit unions to meet the evolving financial needs of families and businesses across America. In doing so, I am confident that NCUA will emerge as a stronger, more effective agency that well serves its mission and America's 145 million credit union members.

Kyle S. Hauptman
Chairman
National Credit Union Administration